Season of car discounts and price increase, to buy or not to
With most buyers staying out of car showrooms during the month of December, automakers across the country are offering hefty discounts, innovative schemes and freebies to stir up enthusiasm. Car prices are also set to rise in January and this could result in many prospective buyers opting for making purchases in December despite lower resale value in the years ahead.
However, it needs to be taken into account whether it is worth falling for discounts and schemes or holding off till the new year to buy cars and pay higher prices. It is a known fact that resale value is calculated on the year of production and hence purchasing a car in December does not yield good results when the car is finally sold.
Car depreciation of 10-12% per annum, how long buyers want to hold on to the car before sale, popularity of the model and resale value at the time of sale all need to be taken into account before taking such decisions.