Posted by Best Times of the Year to Buy a Car (Seasonal Deals)
Buying a car at the right time of year can save you thousands of dollars. Car prices fluctuate based on seasonal trends, dealership sales goals, and new model releases, making certain times better than others for getting the best deal.
This guide breaks down the best months, holidays, and specific times when dealerships offer the biggest discounts and incentives on new and used cars.
Why Timing Matters When Buying a Car
Car dealerships operate on monthly, quarterly, and yearly sales cycles, meaning their motivation to offer discounts changes throughout the year.
- End-of-year sales push dealerships to clear inventory, resulting in deeper discounts.
- Holiday sales events bring limited-time promotions and rebates from manufacturers.
- New model releases force price drops on outgoing models, creating opportunities for buyers.
Understanding these trends helps you maximize savings and negotiate better deals.
Best Times of the Year to Buy a Car
1. End of the Month, Quarter, and Year (Best Overall Discounts)
Car dealerships have sales quotas that are set on a monthly, quarterly, and yearly basis. As these deadlines approach, dealers are more willing to negotiate lower prices to meet their targets.
- Best time: The last few days of the month, quarter (March, June, September, December), and the year (December 26-31).
- Savings potential: Discounts can range from 5-15% off MSRP, depending on the dealership’s goals.
Why it works: Sales managers offer bigger price reductions at the end of these periods to hit manufacturer bonuses and sales incentives.
2. End of the Model Year (Biggest Discounts on Outgoing Models)
Every year, new car models start arriving at dealerships between August and November. To make space for the new inventory, dealerships lower prices on the outgoing model year.
- Best time: August to November, when new models begin arriving.
- Savings potential: 10-20% off MSRP on last year’s models.
Example: If a 2025 model is arriving in September, dealers will discount 2024 models significantly to clear them off the lot.
Tip: The best discounts happen when the dealership has excess inventory of the outgoing model, so check stock levels before negotiating.
3. Holiday Sales Events (Major Discounts and Manufacturer Incentives)
Many car dealerships use holidays as an opportunity to advertise big sales and incentives.
| Holiday Sales Event | Best Discounts On | Why It’s a Good Time to Buy |
|---|---|---|
| New Year’s Eve (December 31) | New and outgoing models | Last chance for dealers to meet yearly quotas. |
| Memorial Day (Late May) | New model releases | First major sales event of the year, good for early discounts. |
| Fourth of July | Outgoing model year cars | Manufacturers push summer clearance events. |
| Labor Day (Early September) | New and used cars | Dealers clear older inventory before fall models arrive. |
| Black Friday (Late November) | High-end trims & luxury cars | Special manufacturer promotions and lease deals. |
| End-of-Year Clearance (December) | All car types | Largest overall discounts on remaining inventory. |
Best holiday for the biggest discount: New Year’s Eve, when dealers offer their most aggressive price cuts to clear out inventory.
4. Winter Months (January & February – Best for Used Cars)
The winter months, especially January and February, are the slowest months for car sales. Fewer people buy cars due to cold weather and holiday expenses, giving dealerships more incentive to lower prices.
- Best time: Mid-January to late February.
- Savings potential: 8-12% off MSRP on used cars.
Why it works: Since sales are slow, dealerships offer deeper discounts to attract buyers and move unsold inventory.
5. Spring and Summer (Good for Incentives, Bad for Prices)
Spring and early summer bring higher demand for cars, meaning fewer discounts. However, manufacturers introduce special financing offers and lease deals during this time.
- Best for: Low-interest financing and lease incentives.
- Worst for: Big cash discounts, as demand is higher.
Tip: If you plan to finance or lease, check for spring and early summer manufacturer promotions instead of cash discounts.
When Not to Buy a Car (Worst Times for Deals)
Certain times of the year are not ideal for buying a car, as demand is high and dealers have little motivation to offer discounts.
| Worst Time to Buy | Why It’s a Bad Time |
|---|---|
| Early in the Month | Dealers aren’t under pressure to meet sales quotas yet. |
| Spring Break & Tax Refund Season (March – April) | More buyers on the market, meaning higher prices. |
| Summer (June – July) | Increased demand leads to fewer incentives. |
| Back-to-School Season (August) | Higher demand for family vehicles (SUVs, minivans), making it harder to negotiate. |
If possible, wait until the end of a month, quarter, or year for the best deal rather than buying during high-demand periods.
Final Thoughts: When Is the Best Time to Buy a Car?
The best time to buy a car depends on whether you’re looking for a new or used vehicle, dealership incentives, and seasonal trends.
Best Times to Buy a Car
- Best overall: End of the month, quarter, and year (especially December 26-31).
- Best for outgoing models: August – November, when new models arrive.
- Best for used cars: January – February, when demand is lowest.
- Best for manufacturer incentives: Memorial Day, Fourth of July, Labor Day, and Black Friday.
Worst Times to Buy a Car
- Early in the month, when sales goals don’t pressure dealers.
- Spring tax refund season, when demand is high.
- Summer, when more buyers are in the market, reducing discounts.
By timing your purchase strategically, you can save thousands of dollars and get the best deal on your next car. Before heading to the dealership, research available discounts, inventory levels, and upcoming model releases to maximize your savings.