What will you be buying in 2018? January traditionally brings white sales. Everyone knows the best time to buy a new big screen TV is just before the Super Bowl. However, when it comes to major purchases, such as an auto or home purchase, do you still know the best times to buy in 2018?
Knowing when to buy can save you money, and the best times might surprise you. So when you’re in the market for a car or a home you should do your homework:
- Research the make and model of the car you want
- Research the housing market in your target neighborhood
- Then arm yourself with the best times for buying in 2018
United Financial wants to help you to buy your dream car or house. We also don’t want you to pay more for your dream than you need to. You can get your head out of the clouds with these simple strategies, and the gold lining will end up in your wallet.
Wheels and Deals
With all the promotions that are advertised throughout the year, it could seem like any time is a good time to buy a car. Good, yes. But what is the best time to buy a car? Think “end” and you could save even more! Here are three “ends” that will provide you the means to get the best deal for your wheels:
- End of the calendar year. Your best bet to get a great deal on a car is the final week of the year. Those seven days between Christmas and New Year are when dealerships and their sales staff are scrambling to make their year-end quotas. They are motivated to sell you a vehicle!
When everyone else is heading to the store to exchange unwanted Christmas gifts, you should head to the car lot. Knowing that the sales associate is eager to meet a quota gives you leverage in negotiating a great deal. So plan ahead and tell Santa you want a car for Christmas.
- End of the month. If you can’t put off buying in 2018 to the end of the year, dealerships also have quarterly and monthly quotas to meet. Your leverage isn’t as strong as at year’s end, but it still gives you an edge.
- End of the model year. Dealerships typically begin clearing inventory in the fall to make room for the new models coming in. That makes September, October and November prime months for buying in 2018 to get a bargain on an out-going model. Just check the make and model you’re interested in. Some models switch at other times of the year.
Keep your eyes focused on the current year’s model! Especially if you’re easily lured or distracted by the latest bells and whistles or color options on new models, then remember this: The best time to buy a car isn’t when the model year is next year!
Spring brings great weather, a tax refund in your pocket, and good inventory to choose from. However, it’s the worst time to buy a car. Hold off for fall if you can. If you can’t, try for the end of the month and come prepared to negotiate.
Keeping Your Wheels a Good Deal
If you’re buying in 2018, take time to determine what you can afford. Don’t let a dealer check your credit until you’re ready to buy. Too many credit checks spread over time raises a red flag, so keep those credit checks within a two-week window. Then they’ll be counted as a single request.
Better yet, talk to a United Financial loan officer before you head to the car lot. You comparison shop in order to get the best deal on a vehicle to save money. You should also shop for the best car loan. United Financial can help you save money on your loan and help keep your sweet deal sweet.
From Starter Homes to Forever Homes
Some advisors say the best time to buy a home is when you can afford it. That’s great advice as long as you know what you can afford! Too often, first time buyers in particular focus on the mortgage and forget the other costs of home ownership:
- Property taxes – the higher the assessed value of the house the higher your taxes will be
- Furnishings – the more rooms in the house the more furniture you need to buy
- Maintenance costs – more rooms to heat, more bathrooms with leaky plumbing, and a bigger lawn to care for
Then there’s homeowner association fees, not to mention the cost of moving! In the pursuit of more square footage, who wants the reality check of what it truly costs? You need to know what you can afford so you don’t end up house poor.
A United Financial mortgage specialist will give you honest advice concerning what you can afford.
After you figure out what you can afford, you’ll still need a few strategies to get the most house for your dollar. If your plan includes buying in 2018, knowing the best time to buy a home can have a huge impact.
One strategy that sounds great is to time your purchase when mortgage rates are at their lowest, as well as when housing values are falling. Great timing if you can arrange it! However, even with a crystal ball, this strategy will drive you crazy. You could wait forever for ideal conditions for buying in 2018.
No one knows what the future holds, so here are some better strategies for buying a home:
- House hunt but don’t buy in the spring. If you’ve purchased a house before, no doubt you’ve noticed how “for sale” signs spring up after the snow melts. The housing market warms up with the temperature.
Here’s your opportunity to look and learn. Figure out what you most need and want in a home. Get a realistic picture of housing values. But don’t buy!
- Buy a house in the winter. Colder temperatures and the middle of the school year discourage potential buyers from getting into the market. They’re willing to wait until spring. However, you know that this is your best bet for buying in 2018!
You know that you—a potential buyer—have become a hot commodity! Once a homeowner gets you in their door, they’ll be more willing to negotiate with you. If you’re the only buyer on the horizon, then a seller is more likely to accept a lower offer from you. You could purchase a house for thousands of dollars less.
Timing Isn’t Everything
Knowing the best time to buy a home can save you a bundle. Now do yourself a favor and add these strategies to make the most of those savings:
- Don’t take out loans for other large purchases during the six months before you buy a house. Don’t give a lender any reason to feel nervous about loaning to you.
- Check out mortgage rates and options at United Financial before buying in 2018. Even a slightly lower interest rate saves you a small fortune over 30 years.
- Come talk to a loan officer and get pre-qualified for a mortgage. Few things are more disheartening than finding your dream home and then discovering you can’t afford it.
Best Time to Talk to Us
Knowing the best time to buy a home or car has consequences for your financial health. So before you head to a car dealership or call a realtor, make an appointment with a loan officer here at United Financial. We’re here to help you crunch numbers and make sure the house or car you’re buying in 2018 will be the best financial decision for you. Happy home and auto hunting in 2018!