How Long After a New Car Launch Do Discounts Appear?
2 Answers
Discounts on new cars typically appear about a year after launch. Generally, newly launched cars do not have discounts, or they may offer promotions during special events, but they are mostly sold at the manufacturer's suggested retail price (MSRP). The previous generation models usually see significant price drops. After six months to a year, prices tend to drop considerably, and then they stabilize. Further price reductions are rare unless a new generation model is launched after two or three years. Below is an introduction to buying a car outright versus financing: Buying Outright: Purchasing a car outright usually does not involve additional fees, such as handling charges or deposits, making it relatively more cost-effective. However, the financial pressure of paying the full amount at once is significant, and most families cannot afford it. Financing: Financing is now the most common way to buy a car. After signing a car loan agreement with a bank, you typically make monthly payments over 36 months. After paying the down payment, you simply make the monthly installments. This process incurs corresponding interest costs, so the total price of the car ends up being higher, but the financial pressure is smaller.
Newly launched vehicles typically don't have discounts initially as manufacturers need to maintain brand image and launch momentum. When I accompanied a friend to a dealership, the sales manager privately mentioned they'd consider discounts only after at least 3 months. This waiting period allows initial buyers to take delivery and dealers to recoup costs. Substantial discounts usually emerge after 6+ months, especially during quarter-end or off-season promotions. For instance, a German brand's new model launched last November only offered a ¥15,000 cash discount by next April. Luxury brands may take longer, while economy brands adjust pricing faster. I recommend monitoring pre-auto-show periods or dealers' month-end settlement cycles.
