End of year car deals

As the holidays end and business owners look to sell as many products as possible to make one last push for higher annual profits, drivers could face a great opportunity to find the right vehicle at the right price. Many dealerships hold end-of-the-year sales to take advantage of the fact consumers have a little more spending money and are looking to start the new year with a brand new purchase.

When it comes to automobiles, some drivers are wary of making such a pricey investment - spending tens of thousands of dollars on a car that they may only use for a few years. However, with bargains available in a lot of places around the country, now could be the time to take the leap.

Clearing inventory
Businesses take the time between Christmas and New Year's Eve to get as many older models out of the warehouses as possible to make room for newer ones. This process happens every year and keeps dealerships from becoming stagnant. By having a high turnover among vehicles, dealers increase their sales and keep customers coming back for more to see the latest car technologies and advancements. To clear inventories, businesses offer lower prices to get cars out of their lots and into buyers' driveways. With numerous different deals available, many are willing to negotiate on prices and offer incentives that can benefit drivers.

Cash back
One of the most prominent ways that businesses sell more vehicles is by offering cash back to buyers. This enables customers to purchase the car of their choosing and then receive an agreed upon amount of money after the sale. It's a win-win for both parties because buyers can save money while dealers can close deals more quickly.

Bargaining power
It's important to note that at this time of year, the customer is largely in control of the negotiations. While everyone has his or her bottom line, at the end of the day, businesses want to sell as many vehicles as possible in a short amount of time. It's very difficult to allow customers to walk away, so dealers are willing to come off of their original asking prices more readily. This gives drivers the perfect chance to find a great deal. If a buyer feels the price is too high, then a dealer may offer a variety of incentives to boost interest in a certain car. Either way, drivers have a strong hand to play each time they step into a lot.

Discounts rise
As the days go by and the new year approaches, deals that were available one day may actually be better than the next. Businesses feel the pressure and will slash prices and offer better bargains to lure in more customers. This means buyers can bide their time and choose when to purchase vehicles on their own terms.

More options
One of the more advantageous things about this time of year is that businesses may expand their offerings to customers and be a little more lenient to seal a deal. This could mean tacking on a lower interest rate, more cash back, additional car features or different methods of financing. Buyers can have their payment terms tailored to their personal schedules and can receive energy efficiency discounts or extra perks that may have not been available during other periods.

If you're looking for a new car, it's also vital to find the right type of auto insurance to match your vehicle. Speak with your agent and update your policy to ensure you're covered during 2015.

CoverHound can help drivers find car insurance quotes online.

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