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

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."

According to Iny, one incentive that has worked particularly well is the three-month break that automotive manufacturers have taken to extending during Christmas time, before buyers make their first payment. "The carmakers figured that during the holiday season, people would be in the mood to buy, but they wouldn't have the ready cash," he says. "Three months with no payments gives buyers the time they need to make all of their Christmas purchases and then pay off their credits cards. Only then would their car payments begin to kick in."

That said, Iny concedes that spring has its attractions for new car buyers. In fact, Iny was only able to chat briefly, rattling off his interview over a car phone as he rushed between media interviews following the release of Auto 2007, the APA's annual car guide. That's because the guide, which is published in conjunction with Protegez-Vous, a Quebec-based consumer advocacy magazine, is put out to coincide with the busy spring season.

A cyclical and seasonal industry
Of course, Christmas and spring aren't the only times one can buy a car. In fact, what's fairly clear from listening to both Iny and Pabon is that the industry moves in cycles, and that there are advantages and disadvantages to buying at any particular time.