Team AckoApr 12, 2023
Depending on whom you talk to, you may hear contradicting opinions on whether the end-of-year sale is the best time to buy a bike. One half of them will tell you that this is the best time to buy a bike because of the hefty discounts. The other will advise you to wait for the new year to begin as manufacturers roll out new models and update the existing ones. So, who do you listen to? If you've been asking this question a lot then read on!
The main reason behind the lucrative discounts at the end of the year is a rush by automakers to clear their inventories. There are two primary reasons for this, first is to make space for the newer and more expensive models that automobile companies launch at the start of the next year. Second, customers would also prefer a more recent model with better tech and features over something sitting in the dealer's car lot for months. This is why they entice you with amazing offers at the end of the year. They can be in the form of cash discounts, extended warranties or even a host of free accessories. If you prioritise a good deal over having the latest model, then this is the best time to go ahead and make that purchase.
Almost all automobile companies tend to hike the prices of existing models, and launch new ones at the start of the year. This is mainly due to inflation and rising input costs in the manufacturing process. No one wants to pay extra for something, and manufacturers know this. Hence they bait their customers into purchasing at the end of the year. It is a win-win situation as they clear their inventories, and the customers get to save a few thousand on their purchase.
With purchasing power in the country on the rise, many people want to change their vehicles at least every 5 years. The problem is that owners find it difficult to get a buyer willing to pay a fair price for their vehicle. Auto manufacturers realised this and devised an exchange scheme to pull customers into their dealerships instead. They don't have to take the headache of trying to sell their vehicle, and the value of the vehicle is directly adjusted against the new one they buy from the showroom.
The value of a vehicle depreciates by about 10-12% a year on average. For instance, you have a vehicle that you bought in 2020 and are trying to exchange it during the end of the year exchange offer in 2022. The depreciation is then calculated till the year 2022. If you try to exchange your vehicle even on the 1st of January 2023, you will lose another 10-12% in depreciation as the vehicle is now considered a year older.
December is a good time to pick up a bike if landing a great deal, and saving is at the top of your priority list. As the saying goes, "There are two sides to every coin." Before jumping into one of those enticing end-of-the-year deals, you must know a few things to be cautious about.
As discussed earlier, your vehicle loses 10-12% of its value to depreciation every year. Say you buy your vehicle in December of 2022 rather than January of 2023, and you plan to sell your vehicle a few years down the line. Your vehicle will still be considered a year older when its depreciation is calculated. When you think about it, a vehicle bought in December is just a month older than one purchased in January, but since there has been a change in the year, the bike's value drops significantly. This may not be important if you are someone who buys a vehicle to take care of it and keep it for years to come. For someone who changes vehicles frequently, this can affect your resale value.
Some dealers offer a workaround by promising to register the vehicles at the start of the next year and giving you a temporary registration for December.
Most manufacturers tend to keep refreshing their models every year to keep up with the times, and stay on par with what their competitors offer. This could be something as minor as new paint schemes or a few stickers, an exterior makeover to keep up with the latest design trends, new technology and features, mandatory changes that have to be followed due to changes in rules and regulations or even a complete overhaul of the vehicle. If you go in for a bike at the end-of-year sale, you can miss out on the latest design changes and features. This can, again, make your vehicle less appealing to a potential buyer when you try to sell your vehicle a few years down the line.
All in all, buying a car at the end of the year may have its pros and cons, but for many, it may prove to be smart. This is especially true if you are looking for a new vehicle and find one that you like at a good price during the end-of-the-year sale. In general, buying a bike at the end of the year is certainly something you must consider, particularly if you're planning on buying a new one next year, and are not concerned about losing out on the few minor changes and updates.
If saving money is your top priority, then October through December are the best months to buy a new vehicle, as dealers will offer massive discounts to clear their inventories.
Manufacturers will employ every trick at their disposal to entice you. This can be in the form of discounts ranging from a few thousand to lakhs depending on the make and model. You can expect higher deals on the slower-selling models as manufacturers want to do anything possible to get rid of them to make way for better ones. They may also throw in free accessories and extended warranty periods.
If you are lucky, you may also save some money on insurance. Automobile manufacturers usually have tie-ups with insurance companies. Like the dealers, insurance companies also have targets to reach by the end of the year. As a result, you may be offered more competitive rates than at the start of the next year.
Do your research beforehand. Know how depreciation is calculated, and get your vehicle evaluated by a third party before heading to the showroom. Once you know your vehicle's current market value, you will be in a much better position to haggle with the dealer to get the best price for the vehicle you plan to turn it in.
Buying a second-hand vehicle will save you a lot more, but that comes with its pros and cons. When you buy a new vehicle, you get the benefits of a warranty, the first few services are free, you can maintain it from the get-go, and you get a better resale value. You have to be very careful when buying second-hand. There is a lot to consider, has it been maintained well, been involved in any accidents, and why is the owner selling it? A second-hand car will save you a lot, provided you find a vehicle in very good condition.
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