Buying last year model car when new models are out

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
jgdsss
Posts: 131
Joined: Mon May 16, 2016 11:31 pm
Location: Florida

Buying last year model car when new models are out

Post by jgdsss »

Does anyone have an experience buying last years model car when the new models are out? I’m looking at 2020 Volvo xc60 and there are a few 19s left. Same body style, etc. they cost roughly $10k less...one in particular had manufacturer date of 8/2018. Is it a problem that it’s sat on the lot for so long? What would be the reason no one bought it?
runner3081
Posts: 5993
Joined: Mon Aug 22, 2016 3:22 pm

Re: Buying last year model car when new models are out

Post by runner3081 »

Could be any number of reasons. Color, options, price, etc, etc.

Warranty is the same, it wouldn't worry me to buy a car that has been sitting on the lot for a while.
Lalamimi
Posts: 1209
Joined: Mon Jun 24, 2019 4:22 pm
Location: Texas

Re: Buying last year model car when new models are out

Post by Lalamimi »

We have done it several times. Check the information, maybe got traded dealer to dealer. How many miles on it? Maybe the salemen drove it, or it was a courtesy car. I bought a 2007 Lexus ES350 in August 2008, with 1400 miles on it - it was a dealer courtesy car. Still drive it, 146K miles on it. Looks new.
User avatar
sperry8
Posts: 3065
Joined: Sat Mar 29, 2008 9:25 pm
Location: Miami FL

Re: Buying last year model car when new models are out

Post by sperry8 »

jgdsss wrote: Sun Dec 15, 2019 9:18 am Does anyone have an experience buying last years model car when the new models are out? I’m looking at 2020 Volvo xc60 and there are a few 19s left. Same body style, etc. they cost roughly $10k less...one in particular had manufacturer date of 8/2018. Is it a problem that it’s sat on the lot for so long? What would be the reason no one bought it?
There may be no reason or a silly reason, like color, certain options or lack thereof. I bought a year old new car and it was perfect. Guy said the color wasn't as popular and it was missing some options people wanted. I didn't want those options and color was fine for me. Save $10k. Go for it.
BH Contests: 23 #89 of 607 | 22 #512 of 674 | 21 #66 of 636 |20 #253/664 |19 #233/645 |18 #150/493 |17 #516/647 |16 #121/610 |15 #18/552 |14 #225/503 |13 #383/433 |12 #366/410 |11 #113/369 |10 #53/282
BuddyJet
Posts: 1111
Joined: Mon Jun 24, 2019 8:56 pm

Re: Buying last year model car when new models are out

Post by BuddyJet »

Only downside is the value on sale or insurance settlement will be less than the current model year. Not a real issue if you keep the car for several years and it doesn’t get totaled.
People say nothing is impossible. I do nothing all day.
MotoTrojan
Posts: 11259
Joined: Wed Feb 01, 2017 7:39 pm

Re: Buying last year model car when new models are out

Post by MotoTrojan »

Maybe people didn’t buy it because it was about to be the previous generation. My current car is a 2018 and a pretty substantial redesign came out in 2019. I got it for almost 30% off MSRP (out the door price in CA was well under MSRP). Used cars, same year, with 15K miles were listed for more, pre-tax.

I’m happy.
Bir48die
Posts: 136
Joined: Fri Dec 18, 2015 10:25 am

Re: Buying last year model car when new models are out

Post by Bir48die »

When I've purchase new cars they have exclusively been last year's models purchased in late Winter or early Spring. By that time the dealers are trying to clear out the stock for current year's models. Key issues have been:

1) Is the body style the same as the 2020 model that I like?
2) Were there any major feature changes or upgrades from 2019 to 2020?
3) How long has this model or body style been on the market? Are they planning to revamp the model?

If the 2019 has what you want then I would buy it versus the 2020.
User avatar
RickBoglehead
Posts: 7877
Joined: Wed Feb 14, 2018 8:10 am
Location: In a house

Re: Buying last year model car when new models are out

Post by RickBoglehead »

Some things to check before buying a car that's been sitting on the lot for over a year:

- how much mileage is on it (already mentioned)

- when was it actually manufactured? Sitting for too long means a battery may need to be replaced, or the age of the tires may already be several years old (I would never buy a vehicle that had tires that were dated 2 years ago).

I have purchased end of model year vehicles, and the lower price makes up for the lower value on any future sale.
Avid user of forums on variety of interests-financial, home brewing, F-150, EV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
User avatar
BigWave Dave
Posts: 17
Joined: Wed Nov 27, 2019 9:36 am
Location: Fair Oaks N.Y.

Re: Buying last year model car when new models are out

Post by BigWave Dave »

I do this all the time with motorcycles,snowmobiles,boats, cars,trucks,lawn mowers and we call these leftovers.
gch
Posts: 160
Joined: Thu May 30, 2019 2:47 pm

Re: Buying last year model car when new models are out

Post by gch »

This is exclusively what I do when I buy a new vehicle. If you’re not picky about car color or trim you can find some great deals. If you’re picky then you likely won’t find the more popular color/trim combinations still in stock.
User avatar
whodidntante
Posts: 13114
Joined: Thu Jan 21, 2016 10:11 pm
Location: outside the echo chamber

Re: Buying last year model car when new models are out

Post by whodidntante »

I usually buy older cars that are nearing full depreciation. In the one time and possibly only time I bought a new car, I waited until the first day the manufacturer was accepting orders for the new model and ordered one. I did this because:
- I have observed that cars are getting significantly better over time, and I believe this trend has so far continued. Specifically, better and more features, improved reliability, improved driving nannies, better connectivity, faster infotainment processors, improved power, improved transmissions, fewer glitches and fewer problems with initial quality.
- Manufacturers expend significantly more R&D dollars towards new models than on maintaining old designs. They tend to focus on extracting profit from models currently in production. I wanted the best they could do this model year.
- Last year's model will be one year "older" when you go to sell it, even if it arrived one day before on the lot than the current year model. This will be a factor in the price you get.
- I did not find that the old model purchase incentives were sufficient compensation for the above considerations.

The specific car I did this with was a Ford Mustang GT. YMMV.
User avatar
JAZZISCOOL
Posts: 2658
Joined: Sat May 18, 2019 11:49 am
Location: Colorado - 5,700 ft.

Re: Buying last year model car when new models are out

Post by JAZZISCOOL »

whodidntante wrote: Sun Dec 15, 2019 11:03 am I usually buy older cars that are nearing full depreciation. In the one time and possibly only time I bought a new car, I waited until the first day the manufacturer was accepting orders for the new model and ordered one. I did this because:
- I have observed that cars are getting significantly better over time, and I believe this trend has so far continued. Specifically, better and more features, improved reliability, improved driving nannies, better connectivity, faster infotainment processors, improved power, improved transmissions, fewer glitches and fewer problems with initial quality.
- Manufacturers expend significantly more R&D dollars towards new models than on maintaining old designs. They tend to focus on extracting profit from models currently in production. I wanted the best they could do this model year.
- Last year's model will be one year "older" when you go to sell it, even if it arrived one day before on the lot than the current year model. This will be a factor in the price you get.
- I did not find that the old model purchase incentives were sufficient compensation for the above considerations.

The specific car I did this with was a Ford Mustang GT. YMMV.
Just curious, is there a calculator to determine when a car is "nearing full depreciation"? I have always heard that cars are depreciating assets but didn't know how this is determined.

Also, don't some models depreciate more slowly (e.g. Honda, Toyota, Subaru)?

:beer
User avatar
cheese_breath
Posts: 11786
Joined: Wed Sep 14, 2011 7:08 pm

Re: Buying last year model car when new models are out

Post by cheese_breath »

MotoTrojan wrote: Sun Dec 15, 2019 10:34 am Maybe people didn’t buy it because it was about to be the previous generation. My current car is a 2018 and a pretty substantial redesign came out in 2019. ...
That could be a plus. It often takes awhile to work out the new problems with the new designs, whereas they've been pretty well worked out with the older generation.
The surest way to know the future is when it becomes the past.
swordandscales
Posts: 79
Joined: Fri Jul 26, 2019 3:24 pm
Location: Louisville, KY

Re: Buying last year model car when new models are out

Post by swordandscales »

JAZZISCOOL wrote: Sun Dec 15, 2019 11:12 am
whodidntante wrote: Sun Dec 15, 2019 11:03 am I usually buy older cars that are nearing full depreciation. In the one time and possibly only time I bought a new car, I waited until the first day the manufacturer was accepting orders for the new model and ordered one. I did this because:
- I have observed that cars are getting significantly better over time, and I believe this trend has so far continued. Specifically, better and more features, improved reliability, improved driving nannies, better connectivity, faster infotainment processors, improved power, improved transmissions, fewer glitches and fewer problems with initial quality.
- Manufacturers expend significantly more R&D dollars towards new models than on maintaining old designs. They tend to focus on extracting profit from models currently in production. I wanted the best they could do this model year.
- Last year's model will be one year "older" when you go to sell it, even if it arrived one day before on the lot than the current year model. This will be a factor in the price you get.
- I did not find that the old model purchase incentives were sufficient compensation for the above considerations.

The specific car I did this with was a Ford Mustang GT. YMMV.
Just curious, is there a calculator to determine when a car is "nearing full depreciation"? I have always heard that cars are depreciating assets but didn't know how this is determined.

Also, don't some models depreciate more slowly (e.g. Honda, Toyota, Subaru)?

:beer
I think a good rule is 3 years from new.
Discipline is freedom. | -Jocko Willink
User avatar
JAZZISCOOL
Posts: 2658
Joined: Sat May 18, 2019 11:49 am
Location: Colorado - 5,700 ft.

Re: Buying last year model car when new models are out

Post by JAZZISCOOL »

swordandscales wrote: Sun Dec 15, 2019 11:25 am
JAZZISCOOL wrote: Sun Dec 15, 2019 11:12 am
whodidntante wrote: Sun Dec 15, 2019 11:03 am I usually buy older cars that are nearing full depreciation. In the one time and possibly only time I bought a new car, I waited until the first day the manufacturer was accepting orders for the new model and ordered one. I did this because:
- I have observed that cars are getting significantly better over time, and I believe this trend has so far continued. Specifically, better and more features, improved reliability, improved driving nannies, better connectivity, faster infotainment processors, improved power, improved transmissions, fewer glitches and fewer problems with initial quality.
- Manufacturers expend significantly more R&D dollars towards new models than on maintaining old designs. They tend to focus on extracting profit from models currently in production. I wanted the best they could do this model year.
- Last year's model will be one year "older" when you go to sell it, even if it arrived one day before on the lot than the current year model. This will be a factor in the price you get.
- I did not find that the old model purchase incentives were sufficient compensation for the above considerations.

The specific car I did this with was a Ford Mustang GT. YMMV.
Just curious, is there a calculator to determine when a car is "nearing full depreciation"? I have always heard that cars are depreciating assets but didn't know how this is determined.

Also, don't some models depreciate more slowly (e.g. Honda, Toyota, Subaru)?

:beer
I think a good rule is 3 years from new.
Thanks!
User avatar
lthenderson
Posts: 8525
Joined: Tue Feb 21, 2012 11:43 am
Location: Iowa

Re: Buying last year model car when new models are out

Post by lthenderson »

jgdsss wrote: Sun Dec 15, 2019 9:18 am Is it a problem that it’s sat on the lot for so long?
One thing to inspect carefully on vehicles that have been sitting in a dealership lot for a long time is the tires. Occasionally if they sit long enough they can get flat spots on the tread that are detectable as wheel shake or vibration. If that is the case, I just negotiate a new set of tires with the purchase along with a fresh oil change. Oil will also degrade with time.
MotoTrojan
Posts: 11259
Joined: Wed Feb 01, 2017 7:39 pm

Re: Buying last year model car when new models are out

Post by MotoTrojan »

cheese_breath wrote: Sun Dec 15, 2019 11:13 am
MotoTrojan wrote: Sun Dec 15, 2019 10:34 am Maybe people didn’t buy it because it was about to be the previous generation. My current car is a 2018 and a pretty substantial redesign came out in 2019. ...
That could be a plus. It often takes awhile to work out the new problems with the new designs, whereas they've been pretty well worked out with the older generation.
Yup it was a win-win for me.
JediMisty
Posts: 917
Joined: Tue Aug 07, 2018 7:06 am
Location: Georgia

Re: Buying last year model car when new models are out

Post by JediMisty »

BuddyJet wrote: Sun Dec 15, 2019 9:57 am Only downside is the value on sale or insurance settlement will be less than the current model year. Not a real issue if you keep the car for several years and it doesn’t get totaled.
+1. Had a "leftover" totaled in a car accident. Lost 2k depreciation. However, I had paid less, too. I continue to buy new leftovers when available with what I want.
User avatar
Cubicle
Posts: 1027
Joined: Sun Sep 22, 2019 1:43 am

Re: Buying last year model car when new models are out

Post by Cubicle »

I wouldn't buy the first year of a new generation car. No matter when I actually buying it. Kinks & bugs to be worked out.

Beyond that, no hesitations. Have done it before, would do it again.
$1 saved = >$1 earned. ✓
User avatar
whodidntante
Posts: 13114
Joined: Thu Jan 21, 2016 10:11 pm
Location: outside the echo chamber

Re: Buying last year model car when new models are out

Post by whodidntante »

JAZZISCOOL wrote: Sun Dec 15, 2019 11:12 am
whodidntante wrote: Sun Dec 15, 2019 11:03 am I usually buy older cars that are nearing full depreciation. In the one time and possibly only time I bought a new car, I waited until the first day the manufacturer was accepting orders for the new model and ordered one. I did this because:
- I have observed that cars are getting significantly better over time, and I believe this trend has so far continued. Specifically, better and more features, improved reliability, improved driving nannies, better connectivity, faster infotainment processors, improved power, improved transmissions, fewer glitches and fewer problems with initial quality.
- Manufacturers expend significantly more R&D dollars towards new models than on maintaining old designs. They tend to focus on extracting profit from models currently in production. I wanted the best they could do this model year.
- Last year's model will be one year "older" when you go to sell it, even if it arrived one day before on the lot than the current year model. This will be a factor in the price you get.
- I did not find that the old model purchase incentives were sufficient compensation for the above considerations.

The specific car I did this with was a Ford Mustang GT. YMMV.
Just curious, is there a calculator to determine when a car is "nearing full depreciation"? I have always heard that cars are depreciating assets but didn't know how this is determined.

Also, don't some models depreciate more slowly (e.g. Honda, Toyota, Subaru)?

:beer
Over most of my life what I've done is the opposite. Meaning I buy cars that depreciate rapidly but have already done most of their depreciation. These are nice cars, at least to me. You know they are almost fully depreciated because you don't pay much for them. Most of my cars involved an outlay of less than $5300, most often selling for $2200-$3000 some years later. Pretty cheap but pleasant rides. I'm a gearhead so I know which cars and which configurations of those cars are built to last and so far the experience has been good. I haven't bought a used car for just over 13 years, however. I might have to spend $7500 for a comparable car today.

The only Honda I ever bought was a flood totaled Civic that I bought for $3,900 with less than 20k miles. Generally, I find Hondas, Toyotas, and Subarus extremely overpriced for what you get as a used car but that was an exception.

Maybe as I get old and rich and fat I'll just loosen my purse strings, but I actually enjoy the bargain hunt. And doing this has allowed me to build a lot of wealth that would have otherwise been eaten by car depreciation, full coverage insurance, and the opportunity cost of driving high-value cars. :happy
AlphaLess
Posts: 3409
Joined: Fri Sep 29, 2017 11:38 pm
Location: Kentucky

Re: Buying last year model car when new models are out

Post by AlphaLess »

A few considerations:

- warranty. Has the warranty been started?
- Resale. 5 or 10 years from now, when you sell, that one year would be worth a bit less. Although you will definitely be ahead in the game, because the discount you get today is MUCH bigger, and it is TODAY,
- features. Generally, with cars sitting that long, there is something weird about features. E.g., loaded in a lot of respects, but one key obvious feature missing. Hard to put a finger on this: it is so personal.
- color: is the car NEON green? J/K
I don't carry a signature because people are easily offended.
User avatar
JAZZISCOOL
Posts: 2658
Joined: Sat May 18, 2019 11:49 am
Location: Colorado - 5,700 ft.

Re: Buying last year model car when new models are out

Post by JAZZISCOOL »

whodidntante wrote: Sun Dec 15, 2019 1:53 pm
JAZZISCOOL wrote: Sun Dec 15, 2019 11:12 am
whodidntante wrote: Sun Dec 15, 2019 11:03 am I usually buy older cars that are nearing full depreciation. In the one time and possibly only time I bought a new car, I waited until the first day the manufacturer was accepting orders for the new model and ordered one. I did this because:
- I have observed that cars are getting significantly better over time, and I believe this trend has so far continued. Specifically, better and more features, improved reliability, improved driving nannies, better connectivity, faster infotainment processors, improved power, improved transmissions, fewer glitches and fewer problems with initial quality.
- Manufacturers expend significantly more R&D dollars towards new models than on maintaining old designs. They tend to focus on extracting profit from models currently in production. I wanted the best they could do this model year.
- Last year's model will be one year "older" when you go to sell it, even if it arrived one day before on the lot than the current year model. This will be a factor in the price you get.
- I did not find that the old model purchase incentives were sufficient compensation for the above considerations.

The specific car I did this with was a Ford Mustang GT. YMMV.
Just curious, is there a calculator to determine when a car is "nearing full depreciation"? I have always heard that cars are depreciating assets but didn't know how this is determined.

Also, don't some models depreciate more slowly (e.g. Honda, Toyota, Subaru)?

:beer
Over most of my life what I've done is the opposite. Meaning I buy cars that depreciate rapidly but have already done most of their depreciation. These are nice cars, at least to me. You know they are almost fully depreciated because you don't pay much for them. Most of my cars involved an outlay of less than $5300, most often selling for $2200-$3000 some years later. Pretty cheap but pleasant rides. I'm a gearhead so I know which cars and which configurations of those cars are built to last and so far the experience has been good. I haven't bought a used car for just over 13 years, however. I might have to spend $7500 for a comparable car today.

The only Honda I ever bought was a flood totaled Civic that I bought for $3,900 with less than 20k miles. Generally, I find Hondas, Toyotas, and Subarus extremely overpriced for what you get as a used car but that was an exception.

Maybe as I get old and rich and fat I'll just loosen my purse strings, but I actually enjoy the bargain hunt. And doing this has allowed me to build a lot of wealth that would have otherwise been eaten by car depreciation, full coverage insurance, and the opportunity cost of driving high-value cars. :happy
Very interesting. You sure got a bargain on that Civic. I think since you are a "gearhead", you are much more knowledgeable than the average car buyer (me for sure) and have probably also saved tons-o-$$$ by doing your own work or at least not get ripped off at a dealer or even some indie mechanics since you know engines. I would be in a different buyer category vs. a gearhead since I know little about engines but can do basic internet research LOL.

After buying a used Audi A4 years ago and having to put 2 :shock: engines in it, towing it from Nebraska back to Colorado after one engine fail, I have serious trauma about buying a used car again. Then I had more brain damage from the indie Audi mechanic who caused minor body damage while fixing the silly engine. :(

You make a lot of valid points re: savings on car cost, insurance, etc. :happy
User avatar
whodidntante
Posts: 13114
Joined: Thu Jan 21, 2016 10:11 pm
Location: outside the echo chamber

Re: Buying last year model car when new models are out

Post by whodidntante »

JAZZISCOOL wrote: Sun Dec 15, 2019 2:11 pm You sure got a bargain on that Civic.
Yes, that was definitely a good price. The car didn't show well because it had been flooded with Georgia red clay, still had some reddish stains, reddish ooze was creeping out of the trim and door panels and would give a puff of red dust when turning on the fan (it didn't have A/C). I would imagine most prospective buyers noped and ran away and he was glad to see me at that point. I think the seller was asking $4,200 and I would have paid it. I offered $3,900 and could tell he was going to take it by his reaction, so I started counting out $100 bills before he finished saying "yes," LOL. I got it home, took most of the interior apart and cleaned it up, replaced the stereo and the flood-damaged speakers, and proceeded to use it up with a long commute and some road trips. When I didn't want to own it anymore, it was looking better than when I bought it and I got approximately what I paid for it. It might have been the high watermark of my car deals (wakka wakka).
User avatar
dm200
Posts: 23214
Joined: Mon Feb 26, 2007 1:21 pm
Location: Washington DC area

Re: Buying last year model car when new models are out

Post by dm200 »

I have never done this myself, but doing this seems like it can make a lot of sense financially. I would, though, expect a significant discount vs. BOTH such models purchased earlier in the calendar year AND an equivalent new model.

If you finance the purchase, almost all lenders (especially credit unions) will give the same very low interest rates as on the new model year.

I would also take into account all of the details of the in stock inventory. It is no bargain, even with a discount, if you get and pay for expensive options and model upgrades that you do not want/need. Also, just because a car in the inventory may not be generally popular - it might fit your taste and needs very well.

I find the Wikipedia articles on particular makes and models very informative about how the different model years of a particular make/model differ from or are nearly identical to another year.Toyota Camrys, for example, have an approximate five year cycle when larger changes are made. Within each five year window, most years' details are about the same (BUT occasionally not - so read all the details. ) With Camrys, for example, the 6 cylinder engine carried over from one five year window to the next. Then, the four cylinder engine carried over from the next five year window to the next.
camden
Posts: 414
Joined: Sun Sep 27, 2009 12:22 pm

Re: Buying last year model car when new models are out

Post by camden »

I did this with my last car, purchased in Jan of 2018, a vehicle that had been sitting on the dealers lot for 6 months. Price was nearly 10K lower than MSRP of the next year models. Have been very pleased to date. One caveat, which may not apply to other makes/models/dealers, is that the warranty began on the date the vehicle arrived at the dealer, and they steadfastly refused to advance the beginning date of the warranty to the date I took delivery of the car. So I lost 6 months of warranty, which I was not happy about, but was satisfied enough overall that I accepted that downside.
Topic Author
jgdsss
Posts: 131
Joined: Mon May 16, 2016 11:31 pm
Location: Florida

Re: Buying last year model car when new models are out

Post by jgdsss »

Update: I drove the car; it’s was a demo/loaner at the dealer which means it’s been used and has about 4,300 miles on it. He said I’d get the balance of the new car warranty....not sure it’s still a great deal. 🤔
SR II
Posts: 474
Joined: Wed Mar 19, 2014 7:37 pm

Re: Buying last year model car when new models are out

Post by SR II »

Back in the Spring of 2006, I was in the market for a Volvo S60 for the advanced safety features of the day. I kept watching a 2005 dealer loaner on Autotrader go down in price week after week. It had just over 3k miles on it and the dealer couldn't unload it. Why? Because it was a base model with a stick shift and cloth seats (I didn't even know Volvos were available with cloth seats!). When the price was down to $19k, I drove over and took a look. Yes, it had all the safety features, but nothing else. It came with the balance of the original warranty. Perfect! I took it and still drive her almost 15 years and 69k later.

Another car the dealer had on the lot was a tremendously discounted brand spanking new 2004 Volvo S80 (their flagship at the time) with under 10 miles on the odometer and all the bells and whistles. They were offering it for almost the same price as the loaner 2005 S60 I bought, but with the full original warranty since it was still "new". Apparently, it had been inadvertently deleted from their inventory list and they ran across it in the back of their huge storage lot when looking for a different vehicle. True or not, I don't know. But, sure seemed like a heck of a deal! Just, too big for me to want to drive.
User avatar
Cubicle
Posts: 1027
Joined: Sun Sep 22, 2019 1:43 am

Re: Buying last year model car when new models are out

Post by Cubicle »

jgdsss wrote: Sun Dec 15, 2019 9:30 pm Update: I drove the car; it’s was a demo/loaner at the dealer which means it’s been used and has about 4,300 miles on it. He said I’d get the balance of the new car warranty....not sure it’s still a great deal. 🤔
No thanks. Demo / loaner cars, the ones I've seen, have been beat up by drivers who knew they weren't taking the car home themselves.
$1 saved = >$1 earned. ✓
bluebolt
Posts: 2137
Joined: Sat Jan 14, 2017 8:01 am

Re: Buying last year model car when new models are out

Post by bluebolt »

Loaner and mileage for this specific vehicle aside, you have to make sure you're not just getting a good discount off of sticker, but a good discount from what you could have negotiated for the current model year car.

I found the last time I went car shopping that the incentives given for the previous model year cars were generous, but the dealer wasn't willing to negotiate much. For the current model year cars, I could negotiate about 10% off MSRP, making the out-the-door prices pretty close.
carolinaman
Posts: 5463
Joined: Wed Dec 28, 2011 8:56 am
Location: North Carolina

Re: Buying last year model car when new models are out

Post by carolinaman »

jgdsss wrote: Sun Dec 15, 2019 9:18 am Does anyone have an experience buying last years model car when the new models are out? I’m looking at 2020 Volvo xc60 and there are a few 19s left. Same body style, etc. they cost roughly $10k less...one in particular had manufacturer date of 8/2018. Is it a problem that it’s sat on the lot for so long? What would be the reason no one bought it?
I see no problem with this as long as there is no issue with the car. You should get a lower price than current year model but the discount will likely not be major. Auto manufacturers usually come up with new designs every few years. You should check to see if this has happened with your model. If so, it could make the older model less desirable, but still a good car.
User avatar
mmmodem
Posts: 2628
Joined: Thu May 20, 2010 1:22 pm

Re: Buying last year model car when new models are out

Post by mmmodem »

jgdsss wrote: Sun Dec 15, 2019 9:30 pm Update: I drove the car; it’s was a demo/loaner at the dealer which means it’s been used and has about 4,300 miles on it. He said I’d get the balance of the new car warranty....not sure it’s still a great deal. 🤔
My friend got $5000 off a BMW that was a demo. The car is used but will be treated as new if that even means anything. My friend got $1 off for every mile on the car so considered it a good deal.
User avatar
bottlecap
Posts: 6906
Joined: Tue Mar 06, 2007 10:21 pm
Location: Tennessee

Re: Buying last year model car when new models are out

Post by bottlecap »

There is no problem. Manufacturers try to forecast demand, but it is impossible to get exactly right. So many times, there are the previous years model sitting on the lot when the new year's models begin arriving.

The only possible issue is that it's been sitting in the elements for as much as a year. When you buy it, wash it and give it a good hand waxing.

Good luck,

JT
Jags4186
Posts: 8198
Joined: Wed Jun 18, 2014 7:12 pm

Re: Buying last year model car when new models are out

Post by Jags4186 »

Prior year models are generally big savings when the new model is a complete redesign. If it isn't a complete redesign you might still save, but likely that car is sitting around due to not having desirable options or color combinations.

In an odd twist, prior year models are usually more expensive to lease than current year models as manufacturer incentives tend to dry up on older models.
User avatar
abuss368
Posts: 27850
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Buying last year model car when new models are out

Post by abuss368 »

We did that. Purchased a car in December with the new year in the market. Got a great deal and held the car for 12 years.
John C. Bogle: “Simplicity is the master key to financial success."
User avatar
nativenewenglander
Posts: 190
Joined: Sun Jul 30, 2017 6:05 am

Re: Buying last year model car when new models are out

Post by nativenewenglander »

We are looking to get a 2019 model early next year probably a Santa Fe. What strategy do people use to get a good deal at car dealers? I worked in sales my whole career, but boy do I hate buying cars.
User avatar
hsmith
Posts: 67
Joined: Thu May 25, 2017 5:48 am
Location: Upstate New York

Re: Buying last year model car when new models are out

Post by hsmith »

jgdsss wrote: Sun Dec 15, 2019 9:30 pm Update: I drove the car; it’s was a demo/loaner at the dealer which means it’s been used and has about 4,300 miles on it. He said I’d get the balance of the new car warranty....not sure it’s still a great deal. 🤔
The high mileage would be a concern for me, too. Maybe you could use that for leverage to negotiate an even lower price.

Also, FYI, when shopping for a SUV a couple of years ago, I was considering a Volvo. I found quite a bit of useful information on an active Internet forum focusing on Volvos, called “Swedespeed.” See: https://forums.swedespeed.com/
User avatar
RootSki
Posts: 582
Joined: Mon Feb 20, 2017 10:52 am

Re: Buying last year model car when new models are out

Post by RootSki »

jgdsss wrote: Sun Dec 15, 2019 9:18 am Does anyone have an experience buying last years model car when the new models are out? I’m looking at 2020 Volvo xc60 and there are a few 19s left. Same body style, etc. they cost roughly $10k less...one in particular had manufacturer date of 8/2018. Is it a problem that it’s sat on the lot for so long? What would be the reason no one bought it?
No issues, but make sure they apply Total Software Update 2.0 if you buy it. I own a 2019 XC60 T8 R-Design. There's not too many significant changes between the MY19's and MY20's. Hybrid battery is a little bigger in the T8.
https://forums.swedespeed.com/showthrea ... 20-updates
User avatar
RootSki
Posts: 582
Joined: Mon Feb 20, 2017 10:52 am

Re: Buying last year model car when new models are out

Post by RootSki »

MotoTrojan wrote: Sun Dec 15, 2019 10:34 am Maybe people didn’t buy it because it was about to be the previous generation. My current car is a 2018 and a pretty substantial redesign came out in 2019. I got it for almost 30% off MSRP (out the door price in CA was well under MSRP). Used cars, same year, with 15K miles were listed for more, pre-tax.

I’m happy.
No. The 2nd generation of XC60 was introduced in 2017 as MY2018. I wouldn't expect to see a minor refresh on the XC60 until around 2022.
User avatar
RootSki
Posts: 582
Joined: Mon Feb 20, 2017 10:52 am

Re: Buying last year model car when new models are out

Post by RootSki »

jgdsss wrote: Sun Dec 15, 2019 9:30 pm Update: I drove the car; it’s was a demo/loaner at the dealer which means it’s been used and has about 4,300 miles on it. He said I’d get the balance of the new car warranty....not sure it’s still a great deal. 🤔
Tell them to CPO the car. You will get an extra year on the factory warranty and the milage will increase from 50,000 to Unlimited.
TheOscarGuy
Posts: 1562
Joined: Sat Oct 06, 2012 1:10 pm
Location: Where I wanna be.

Re: Buying last year model car when new models are out

Post by TheOscarGuy »

jgdsss wrote: Sun Dec 15, 2019 9:18 am Does anyone have an experience buying last years model car when the new models are out? I’m looking at 2020 Volvo xc60 and there are a few 19s left. Same body style, etc. they cost roughly $10k less...one in particular had manufacturer date of 8/2018. Is it a problem that it’s sat on the lot for so long? What would be the reason no one bought it?
I would not hesitate to buy at such a steep discount. Is that what all cars with that date cost, or just the one car you are talking about. I think manufacturer warranty should hold when you start owning the vehicle. My last two vehicles have been last MY right before a refresh of the model happened, I ended up getting a lot of discount on them.
Nowizard
Posts: 4842
Joined: Tue Oct 23, 2007 5:33 pm

Re: Buying last year model car when new models are out

Post by Nowizard »

We always purchase this way in consideration of price, particularly since we keep vehicles longer time periods and are not concerned with the initial hit on depreciation. Part of that is taken care of when we eventually sell since there has basically been a year less to increase mileage. Our only consideration is the typical evaluation of vehicle reliability and, particularly, whether there is a significant design change with the new model anticipated or known.

Tim
azanon
Posts: 3142
Joined: Mon Nov 07, 2011 9:34 am

Re: Buying last year model car when new models are out

Post by azanon »

lthenderson wrote: Sun Dec 15, 2019 11:33 am
jgdsss wrote: Sun Dec 15, 2019 9:18 am Is it a problem that it’s sat on the lot for so long?
One thing to inspect carefully on vehicles that have been sitting in a dealership lot for a long time is the tires. Occasionally if they sit long enough they can get flat spots on the tread that are detectable as wheel shake or vibration. If that is the case, I just negotiate a new set of tires with the purchase along with a fresh oil change. Oil will also degrade with time.
I'd worry about the battery too.
User avatar
RootSki
Posts: 582
Joined: Mon Feb 20, 2017 10:52 am

Re: Buying last year model car when new models are out

Post by RootSki »

azanon wrote: Mon Dec 16, 2019 8:51 am
lthenderson wrote: Sun Dec 15, 2019 11:33 am
jgdsss wrote: Sun Dec 15, 2019 9:18 am Is it a problem that it’s sat on the lot for so long?
One thing to inspect carefully on vehicles that have been sitting in a dealership lot for a long time is the tires. Occasionally if they sit long enough they can get flat spots on the tread that are detectable as wheel shake or vibration. If that is the case, I just negotiate a new set of tires with the purchase along with a fresh oil change. Oil will also degrade with time.
I'd worry about the battery too.
The battery will be under warranty for 4-5 years depending if the XC60 the OP wants is CPO'd or not.

There's nothing to worry about.
User avatar
dm200
Posts: 23214
Joined: Mon Feb 26, 2007 1:21 pm
Location: Washington DC area

Re: Buying last year model car when new models are out

Post by dm200 »

jgdsss wrote: Sun Dec 15, 2019 9:30 pm Update: I drove the car; it’s was a demo/loaner at the dealer which means it’s been used and has about 4,300 miles on it. He said I’d get the balance of the new car warranty....not sure it’s still a great deal. 🤔
I would not be concerned about it having been a demo/loaner or with the 4,300 miles -- as long as you can get it at the right price! It is, basically, a "used car" now. Not sure, but there might be some benefits the dealer could add - such as more warranty protection (maybe one of those extended warranties - at no charge to you!
The battery will be under warranty for 4-5 years depending if the XC60 the OP wants is CPO'd or not.
There's nothing to worry about.
I would not be concerned either. Early battery failure seems unlikely - and, in most cases, replacing a battery will not be a high cost item either.
Traveler
Posts: 848
Joined: Fri Aug 30, 2013 9:07 pm

Re: Buying last year model car when new models are out

Post by Traveler »

My last two cars (2002 Honda Accord) and a 2014 Nissan Maxima were bought when the new, redesigned models were coming out. I felt like I got a pretty good deal, especially on the Maxima. Neither car had more than ~100 miles on it even though they'd been sitting around a while.
Post Reply