The best time to buy a new car
By Peter Diekmeyer • Bankrate.com

The advent of spring, the melting snow and the increasing patches of black on the country's roads are focusing Canadian drivers' attention on their vehicles. "It's the busiest time of year for us," says Gustavo Pabon, a sales manager at Montreal's Excel Honda dealership. "Dealers want to put the slow winter season behind them. Now they want to move vehicles fast and will make special efforts to do so."

The advent of spring, the melting snow and the increasing patches of black on the country's roads are focusing Canadian drivers' attention on their vehicles. "It's the busiest time of year for us," says Gustavo Pabon, a sales manager at Montreal's Excel Honda dealership. "Dealers want to put the slow winter season behind them. Now they want to move vehicles fast and will make special efforts to do so."

With the aggressive reputation that car salesmen have, it should come as no surprise that Pabon should say that now is the best time to buy. Cynics would say that fall, when the new models come out, or winter, when activity is low, are also attractive times. That said, Pabon makes a convincing case that spring, when the industry's sales tend to peak, is as good a time as any.

"There are several reasons, which, when put together, provide a lot of momentum to automotive markets in the spring," says Pabon. "For one, manufacturers are quite aware of the seasonal factors and as a result, they put forward a lot of incentives at this time of the year." For example, Honda is currently extending 1.9 percent financing for its Accords as well as a special 3.9 percent rate for certain leasing options. Other dealers are offering similar deals.

According to Pabon, the increased dealer traffic also provides significant advantages to customers who want to trade in their old vehicles. "If you want to do a trade-in during December, when buyers are few and far between, your dealer will offer you far less for your vehicle than he would in the spring, when demand for used vehicles is much stronger," he says.

Pabon also cites a desire among dealers to clear out the previous years' models as a key factor. "When spring comes around, we often have between 80 and 100 older models still on the lot. This year, for some reason, there are a lot less, but we are still very motivated to move them."

Leasing a car? Think winter
Despite Pabon's enthusiasm for buying now, lying low during the busy months can often pay off for deal-seekers, says one long-time industry watcher. "If you want to lease or finance a car, Christmas is often the best time to do it," says George Iny, president of the Automobile Protection Association. "The car business is traditionally very slow during December and January, but in recent years, the manufacturers have been pushing forward significant incentives to even out their sales."