Why September is one of the best times of year to buy a car

September may be one of the best times of year to buy a car. Labor Day promotions, the end of the third quarter, and changing model-year inventory can create opportunities for buyers. 

But timing is only part of getting a good deal when financing a car. Preparing your credit and comparing auto financing options can help you make the most of seasonal savings. 

Is September a great time for car buying? 

September can be one of the best times of year to buy a car because several factors that may motivate automakers and car dealerships can overlap during the month. 

• Labor Day sales: The holiday weekend is traditionally a major promotional period for car dealerships and manufacturers. Depending on the vehicle, shoppers may find discounts, cash-back incentives, or promotional financing. 

• End-of-quarter sales goals: September marks the end of the third quarter. Dealerships working toward monthly or quarterly sales goals may have additional motivation to complete a sale before the month ends. 

• Changing model-year inventory: New model-year vehicles don’t arrive on one universal schedule, but September is typically an important transition month. As newer vehicles arrive, manufacturers and dealerships may offer incentives on outgoing models or even used vehicles to make room for new inventory. 

That doesn’t mean every vehicle will be a great deal in September. Popular models may have few incentives, while discounts on outgoing inventory are only useful if the available vehicle has the features you actually want. 

Can seasonal car deals affect your auto financing? 

A lower purchase price may also reduce the amount you need to finance. 

For example, negotiating $2,000 off the price could mean borrowing $2,000 less if the rest of the transaction stays the same. A smaller loan amount can reduce your monthly payment and the total interest you pay over the life of the car loan. 

Seasonal promotions can add another factor to the calculation. Manufacturers may offer cash incentives or special annual percentage rate (APR) financing on certain vehicles. Though in some cases, you may need to choose between a cash discount and a promotional interest rate. 

Pro tip: Compare the total cost of each option rather than assuming the lowest advertised APR or monthly payment is automatically the better deal. A longer loan term, for example, can lower your monthly payment while increasing the amount of interest you pay overall. 

What to do before financing a car 

A sale can lower the price of the vehicle, but your own financial profile still plays a major role in the auto loan you’re offered. Take a few steps before you head out for a test drive to help you understand your options. 

Should you check your credit before buying a car? 

Yes. Lenders consider your credit score and credit history, along with factors such as income, debt, down payment and loan amount, when determining the interest rate and loan terms they offer. 

Review your credit reports for free at AnnualCreditReport.com before applying for auto financing, and look for inaccurate information that could affect your application.  

Knowing where your credit stands can also give you a better idea of what to expect when you begin comparing loans. 

Should you get pre-approved for a car loan? 

Getting pre-approved for an auto loan before shopping can provide you an important baseline when comparing financing offers. 

A pre-approval can show the loan amount, interest rate and loan term a lender may offer, giving you a clearer idea of how much you can borrow before shopping. 

You can still consider financing offered by a dealership. Having a pre-approval simply gives you another offer to compare with the dealer’s terms and may put you in a stronger position to negotiate. 

Empeople offers auto loans with market-leading rates and terms up to 72 months, with online applications and pre-approval decisions available in minutes. Members may also qualify for additional auto loan rate discounts through All-In Member Pricing.  

Does shopping for an auto loan hurt your credit? 

Shopping around for an auto loan generally has little impact on your credit. Multiple auto loan inquiries made within about 14 to 45 days are generally treated as a single inquiry for scoring purposes, according to the Consumer Financial Protection Bureau.The benefit of shopping around to find the best offer typically outweighs any impact on your credit. 

How to compare car loan offers 

A monthly payment doesn’t tell you how much a loan will ultimately cost. When comparing offers, look at:  

• APR: The APR reflects the interest rate plus certain lender fees, making it useful for comparing the cost of borrowing. 
• Loan term: A longer term may reduce the monthly payment but can increase the total interest you pay. 
• Amount financed: Compare how much you’re actually borrowing after accounting for your down payment, trade-in and other costs. 
• Monthly payment: Make sure the payment comfortably fits your budget alongside insurance, registration, maintenance and other vehicle expenses. 

Looking at these numbers together can help you compare a seasonal promotional offer with financing from a credit union, bank or another lender. 

What is the best time of year to buy a car? 

There isn’t one best time of year to buy a car for every shopper or every vehicle. However, certain periods may offer more opportunities to find incentives or negotiate: 

• Holiday sales events: Labor Day, Memorial Day and other holiday weekends may bring special promotions. 
• End of the month or quarter: Dealers working toward sales goals may have more motivation to negotiate. 
• Model-year transitions: Discounts may become available as outgoing models make way for new inventory. 
• End of the year: Dealers may offer incentives to clear inventory or reach annual sales goals. 

September overlaps with several of these opportunities. Still, the best time for financing a car isn’t determined by the calendar alone. A great deal only works if the vehicle and loan fit your finances. 

Checking your credit and getting pre-approved can put you in a better position when the right opportunity arrives.