The Best Time of Year to Buy a Car (and Save Thousands)

Buying a car is a major financial decision, and timing can make all the difference when it comes to saving thousands of dollars. Whether you’re in the market for a sleek sedan, a rugged SUV, or a cutting-edge electric vehicle, understanding the best times to buy can help you get more bang for your buck. From holiday promotions to end-of-month deals, the right timing can mean driving off the lot with significant savings.

Here’s a breakdown of when to buy to maximize your savings, along with tips to help you prepare for those opportune moments.

Why Timing Matters in Car Buying

Car prices can fluctuate throughout the year based on supply, demand, and dealership sales goals. Certain periods offer buyers better deals, thanks to:

• Sales quotas: Dealerships often have monthly, quarterly, and annual targets they aim to hit.
• Inventory clearouts: Older models need to make way for newer ones, leading to price cuts.
• Seasonality: Car types (e.g., SUVs vs. convertibles) become more or less desirable depending on the time of year.

By targeting the right time, you can take advantage of these factors and save a significant amount of money.

The Best Times of Year to Buy a Car

1. End of the Calendar Year

The end of the year, particularly in December, is widely considered the best time to buy a car. Here’s why:

• Dealership Sales Quotas: Dealerships aim to meet yearly sales quotas to unlock manufacturer bonuses. If they’re falling short, they’re more likely to offer steep discounts to close deals.
• Inventory Clearance: Manufacturers are eager to clear out remaining models to make room for next year’s arrivals, driving prices down.
• Holiday Promotions: December often coincides with major holiday sales events like Christmas or New Year’s specials, offering additional rebates or incentives.

Pro Tip: Start shopping in late December and aim to visit dealerships on the 30th or 31st for last-minute deals.

2. End of the Month or Quarter

If the end of the year isn’t practical for you, try shopping at the end of a month or quarter.

• Why It’s Smart: Salespeople and dealerships alike work toward monthly and quarterly sales goals. If reaching these targets is crucial for bonus eligibility, you’re in a prime position to negotiate a better deal.
• Added Bonus: If a dealership hasn’t sold enough units, they’re more likely to discount vehicles to help them meet quotas.

Timing Tip: Visit late in the afternoon or evening, as dealerships may be more motivated to close a deal before the day ends.

3. Holiday Weekends

Car dealerships love to tie sales events to holidays. These promotions usually include hefty discounts, rebates, and attractive lease deals. Some key holidays to watch for include:

• Presidents’ Day (February): A great time to snag deals on outgoing inventory.
• Memorial Day (May): Many manufacturers start offering incentives for summer models.
• Fourth of July (July): Expect discounts paired with patriotic promotions.
• Labor Day (September): Closeout deals on older models often coincide with this holiday.
• Black Friday (November): Known for retail bargains, Black Friday is also a golden opportunity for car shoppers.

Pro Tip: Research in advance to know which dealerships and brands participate in holiday sales campaigns.

4. Model Year-End Clearance Events

Late summer to early fall is prime time for manufacturers to clear out the current year’s models.

• Why It’s Smart: Automakers usually roll out new models in September or October, meaning dealerships are keen to sell the outgoing models.
• What to Expect: Steeper discounts on remaining inventory as dealerships prioritize clearing their lots for the new arrivals.

Important Note: While model year-end sales can unlock great savings, be mindful that outgoing models may have fewer color or feature options available.

5. During Off-Peak Buying Seasons

Demand for cars isn’t consistent year-round, and buying during slower seasons can work to your advantage.

• Winter (January and February): Chilly weather often keeps buyers away, giving those brave enough to shop more leverage.
• Summer for Convertibles: Convertibles are often cheaper during summer’s end as demand begins to decrease ahead of fall weather.
• Autumn for Trucks/4WDs: These vehicles may see discounts earlier in the year, before they become highly desirable for winter.

Pro Tip: Off-season purchases mean less competition and more flexibility in pricing and negotiations.

How to Prepare for These Buying Windows

Knowing when to shop is only part of the equation. To truly maximize your savings, put a smart game plan in place.

1. Research Ahead of Time

Before heading to a dealership, do your homework.

• Compare Prices: Use pricing tools like Kelley Blue Book or Edmunds to understand a fair price for the make and model you’re interested in.
• Check Incentives: Look up manufacturer rebates, zero-interest financing offers, or specials on vehicles nearing the end of production.
• Know Trade-In Value: If you’re trading in a car, research its market value to strengthen your negotiation position.

2. Pre-Arrange Financing

While dealerships may offer incentives like 0% APR, it’s smart to secure pre-approval from your bank or credit union beforehand.

• Why It Helps: Having a financing option ready gives you flexibility and bargaining power.
• Jumpstart Savings: Compare interest rates and terms to secure the best deal upfront.

3. Plan Your Negotiation Strategy

• Start Negotiating the Out-the-Door Price: Focus on the car’s full price, including taxes and fees, rather than monthly payments, which dealerships might manipulate.
• Be Willing to Walk Away: Knowing there’s always another deal elsewhere gives you an upper hand.
• Time Your Visit Wisely: Visit later in the day on an opportune date (end of the month/year) when dealerships are more likely to negotiate favorably.

4. Be Patient and Flexible

If you have a specific make, model, or color in mind, you might have to pay more or wait longer. Being flexible with your preferences can help you score bigger savings. For example:

• Opting for last year’s model with fewer customizations.
• Choosing a less popular trim level to take advantage of additional discounts.

When it comes to buying a car, timing is everything. By planning your purchase for the end of the year, month, or quarter, or by taking advantage of holiday sales and model clearance events, you can save thousands of dollars. Combined with thorough research, smart financing, and a patient negotiation approach, you’ll be in the driver’s seat of a fantastic deal.