Do you really get a better new car price at the end of the month?

[mikegg]

Here's the logic:

Everyone reads up on how to negotiate a new car price. Every advice tells you to go at the end of the month because salesmen need to hit a target. Of course dealers aren't stupid. They know everyone is coming on the 29th or 30th every month. Demand is bigger. Because demand is bigger, you're competing with more buyers.

Any actual car salesmen that can talk about this?

 

[Feneant2]

From what I have seen, don't go at the end of the month but instead go around the 20-25th and say 'It's more than I want to pay so I'll need to think about it' and walk out. If they have to meet quota they'll call you and offer you a better price than what they were giving you.

 

[Kaido]

There are a bunch of new car dealer AMA's on Reddit that confirm it:

https://www.reddit.com/r/IAmA/comments/h3nmm/iama_new_and_used_car_salesman_ama_and_i_mean/c1sclur

the end of the month this is definitely true. if you came to see me (i sell phones) about a week ago you could have gotten a free iphone instead of $159. gotta hit them quotas

https://www.reddit.com/r/IAmA/comments/3kyb1b/iama_car_dealer_i_know_all_the_tricks_and_tips/cv1jtcu

Only in a new car store. Manufacturers often put on promotions for the dealers as incentives to move cars and there is always a number behind it. If you can wait, it is a great idea to buy a car on the last few days of the month.

https://www.reddit.com/r/IAmA/comme...lesman_ask_me_anything_you_wanna_know/cgg8l8s

Always buy at the end of the month (because the dealership is trying to hit quotas so they get incentives from the manufacturer), all the deals they advertise on tv are complete bull, those deals and incentives are always there, they just call them something else every month. but buy at the end of the month and in the winter, thats when the dealership is willing to take the biggest loss. The biggest winner you can get is buying lasts years model new at the beginning of the year because the dealership wants to get rid of them so they can get allocated new inventory. Again this all depends on what brand and dealership you are looking at but thats the rule of thumb, you will get your best deals in febuary at the end of the month and last years model. Also they dont change the vehicles much from year to year, so getting a 2013 rav 4 right now for 6k under msrp is great because its pretty much the same car as the 2014 since they did the body style change in 2012.

https://www.reddit.com/r/IAmA/comme...lesman_dealing_in_new_and_used_cars_i/cngpc9z

I'm paid on gross profit. I get a percentage of the profit made on a deal. And a bonus based on the number of units I sale.
The finance guy is paid one of two ways, one is by holding rate I.e charging you higher rate than you qualify for. The other is by selling you products like warranty and gap.
Sales managers get paid a percentage of store profit generated per deal and from kick backs from the manufacturer
The dealership makes the rest of the profit and kickbacks as well as doc and admin fees (plus service profit)
However that does have to cover expenses. Typically we as a store have a guideline of what sort of profit per car we're supposed to make but thats calculated as a mien average from all the deals made in a month. This means the management has some leeway what they can do per deal as long as the numbers shake out at the end of the month. I could go more in depth but I was trying to keep it.simple.

 

[Fanatical Meat]

Never sold cars but I have held monthly quota's. The answer is it depends and without knowing the dealerships and sales guys quota attainment its impossible to know. Someone running short or one or two sales away from either losing their job or attaining a bonus will do their best to be your advocate. Someone who has hit their compensation wall or has enough for the month would prefer you buy next month.
In summary without knowing the sales goals its impossible to know for sure.

 

[Kaido]

From what I have seen, don't go at the end of the month but instead go around the 20-25th and say 'It's more than I want to pay so I'll need to think about it' and walk out. If they have to meet quota they'll call you and offer you a better price than what they were giving you.

That's probably the best way to play it. Although my local Jeep dealer was pretty good - no pressure & beat the price I wanted (came in less than Truecar), so it depends on where you go. I hit up about 20 dealerships last time I went car shopping and most of them were mildly aggressive, a few were crazy aggressive, and there were a couple chill ones who were willing to play ball without much hassle.

 

[x26]

Anyone who goes in to a Dealership-in Person-is a Fool.

Make a Deal with a Complete OTD(out-the-door) price --get it in writing-through the Dealerships Internet Sales Dept.

Once you walk in to a Dealership--the Sales Team absolutely cannot give you the Same deals.

Tread Carefully.