PHOENIX (3 On Your Side) - If you are planning to buy a car this year, now is the time to get the best deal, according to the results of iSeeCars.com, a car search engine.
The company analyzed 32,000 used car sales. According to executive analyst, Karl Brauer, better deals typically happen from November through March, but the very best day to buy is Martin Luther King Jr. Day.
Among the factors driving down dealership prices; People are less likely to buy a vehicle in the winter months, and consumers' expendable income was just used up during the holiday season.
"[Dealers] also know that in January and February, they don’t have their tax refunds and so they’re going to have to work harder, they’re going to have to be more compelling with their pricing to get people to come in and buy a car."
Despite MLK Jr. Day being the best time to buy, car shoppers likely won't see any great deals. Demand is incredibly high for used vehicles, particularly used trucks and SUVs, causing prices on used vehicles to spike eight to ten percent, according to Brauer.
"If you bought a car a couple years ago and you paid $25,000 for it and it’s gone up in value in the last year 10%, you just gained $2,500 back in the price of the car," Brauer said. "Even if it dropped a little in value because you drove it and used it a little more, that $2,500 you got back in the last year might have just counteracted all that, and you could sell it for as much as you bought it for."
The second-best time to buy a used car is Presidents' Day, according to the study.