Buying a car is a major financial commitment, and timing your purchase correctly can lead to substantial savings. Dealerships adjust their pricing strategies based on seasonal demand, sales targets, and market fluctuations, making some months far better than others for securing a great deal. Below, we provide a comprehensive guide on when to buy a car to maximize savings and avoid unnecessary expenses.
Best Times to Buy a Car
1. End-of-Year Sales (December: The Best Month)
The most opportune time to buy a car is December. As dealerships aim to close their annual sales quotas and manufacturers push to clear out old inventory, they offer some of the year’s best incentives and discounts.
- End-of-Year Quotas: Sales teams work aggressively to hit or exceed targets, often leading to better negotiation opportunities.
- Manufacturer Incentives: Automakers roll out rebates, low-interest financing, and cashback offers to encourage purchases.
- New Year’s Eve Specials: Shopping at the end of December, particularly on New Year’s Eve, may result in substantial last-minute discounts as dealerships scramble to finish strong.
2. End of the Month and Quarter
Regardless of the month, buying a car at the end of a sales cycle—whether it’s the end of a month or quarter—provides leverage in negotiations. Dealerships have internal sales targets, and meeting or surpassing them often results in financial bonuses from manufacturers.
- Key months for quarterly savings: March, June, September, and December.
- End-of-month negotiations: Dealers aiming to meet their numbers are more willing to offer additional discounts or better financing terms.
3. Winter Months (January and February in Cold-Weather Regions)
Winter, particularly in regions with harsh weather, sees a slowdown in car sales. This decline in foot traffic at dealerships makes it an excellent time to negotiate.
- Low customer turnout: Dealerships may be more flexible on pricing due to lower demand.
- Larger inventories: Leftover models from the previous year are often still available at a discount.
4. Holiday Sales Events
Many automakers use holidays as an opportunity to offer discounts and incentives. Notable holiday sales include:
- Presidents’ Day (February)
- Memorial Day (May)
- Fourth of July
- Labor Day (September)
- Black Friday (November)
These holidays often come with manufacturer-backed promotions, including cashback deals and lower financing rates.
Worst Times to Buy a Car
1. Early in the Year (January and February in High-Demand Regions)
While winter may be a great time to buy in areas with extreme weather, in locations with year-round demand, January and February are less favorable. Dealerships have just ended their year-end sales and are less motivated to offer discounts.
- Limited inventory: Many of the best deals from December are gone, reducing choices.
- Fewer incentives: After heavy year-end discounts, manufacturers typically offer fewer promotional deals.
2. New Model Release Months (August-September)
Manufacturers typically release new model-year vehicles in late summer or early fall. During this time:
- Demand increases: New models attract attention, reducing dealers’ willingness to negotiate.
- Less incentive to discount: Dealerships focus on showcasing new arrivals instead of clearing old stock.
3. Spring and Early Summer (April to July)
Spring and early summer are high-demand periods due to factors such as tax refunds, graduation gifts, and better weather conditions.
- Increased competition: More buyers mean dealers feel less pressure to offer steep discounts.
- Lower negotiation power: The higher demand reduces the likelihood of price reductions.
4. Weekends and Peak Shopping Hours
Dealerships are busier on weekends, meaning:
- Less attention from sales staff: Salespeople are handling multiple customers at once.
- Lower chance of negotiation: With high foot traffic, dealers are less inclined to offer exclusive deals.
If possible, aim to visit dealerships on weekdays, particularly in the morning or early afternoon.
Tips to Maximize Savings
1. Research and Compare Prices
Use online tools like Kelley Blue Book, Edmunds, and TrueCar to compare vehicle prices before stepping into a dealership.
2. Get Pre-Approved for Financing
Arranging financing in advance can help you negotiate better terms and avoid dealer markups on interest rates.
3. Consider Buying Last Year’s Model
Once new models arrive, the previous year’s versions often see significant price reductions.
4. Negotiate Beyond the Sticker Price
Don’t focus solely on the purchase price. Ask for:
- Reduced fees (documentation, dealer prep, etc.)
- Extended warranties at a discount
- Free maintenance or additional perks
5. Be Ready to Walk Away
The willingness to leave a dealership can give you the upper hand in negotiations. Many dealers will call you back with a better offer if they sense they might lose a sale.
Final Thoughts
Strategically timing your car purchase can lead to significant savings. Shopping in December, at the end of the month or quarter, and during slower sales periods can provide the best deals. Conversely, avoiding high-demand seasons, weekends, and new model release periods can help prevent overpaying. With the right research, patience, and negotiation tactics, you can drive away with a great deal that fits both your needs and budget.