A car, used or new, is a big enough purchase that even small savings can make a difference. If you are in the market for a new set of wheels and have some flexibility, it may be worth timing your purchase, a tactic that can help you score a better deal.
In general, the last few months of the year are a good window to shop within, as old inventory gets pushed out for the new. But if you miss that, do not despair — it is not the only time worth hitting the lots.
When can you get the best deal on a car?
October through December is generally the best time to purchase a car. But if you “want to get the best deal, you might want to wait until December, even though you’ll run the risk of having fewer cars to choose from,” said Edmunds.
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If you don’t want to hold out until December, at least try to wait until the month’s end. That’s because “you’re likely to find competitive car-buying deals toward the last week of any month or quarter,” since “this is when car salespeople are more motivated to slash sticker prices even if it means they’ll get lower commissions,” said MarketWatch.
As for which day of the week to go in, “Monday is usually the best day of the week to buy a car” since “showrooms will be the least busy,” said MarketWatch. However, Tuesday or Wednesday can also be a good bet, especially in areas where dealerships aren’t open on Sundays, said Edmunds.
Does the same timing apply for buying a used car?
In short, yes. Fall tends to be a “good time” to buy a used car, said GOBankingRates, especially if you plan to “head to your local car dealer,” as “you’ll likely find that they’re trying to move their current inventory off the lot as quickly as possible.”
But the start of the calendar year, when the weather is colder, may be even better. If you have a high level of control over your timing, “New Year’s Eve and New Year’s Day” in particular “are the best days of the year to buy a used car, because there are 47.9% more deals than average,” said CNBC, citing analysis by iSeeCars, a search engine for used cars. Martin Luther King Jr. Day marks “the second-best time of year to buy a used car, with 43.3% more deals than usual.”
(Image credit: Illustration by Julia Wytrazek / Getty Images)
Another “sweet spot” for used car buyers is from early April to early May, said The Wall Street Journal, because “when people get their tax refund back in the spring, a lot of them go car shopping.” This can lead dealerships to “compete for customers by offering deals.”
Are some years better than others for buying?
Zooming out to the broader context of the year also can help in making a more informed car-buying decision. For instance, if President Trump’s 25% tariffs on imports from Canada and Mexico were to take effect, “auto manufacturers will face higher costs and are likely to pass on some of those price hikes to consumers,” said CBS News.
To assess the overall time period for buying, it helps to look at average vehicle costs. “You can search for industry reports” or “use car value estimators from resources like Kelley Blue Book or Edmunds” to research “your desired car model and compare the value online to the prices you see from dealerships,” said MarketWatch. In the instance you “notice a large markup, it’s probably not a good time to buy a car.”
Another factor to note is average auto loan rates. Personal factors like your credit score hold sway on the rate you receive, but the broader interest rate environment matters too. “When the federal funds rate is up, auto loan rates typically follow suit,” said Experian; “once inflation becomes more manageable and the Fed cuts its interest rate, however, that move trickles down to lenders, which often lower their interest rates as well.”
How else can you score car-buying savings?
Of course, timing isn’t everything when it comes to buying a car. Other tips to keep in mind include:
Get pre-approved before you start shopping. Before you enter a car dealership, get pre-approved for a car loan. This can help you understand how much you can afford to spend and whether your credit needs improvement, said NPR. You will also have more leverage to negotiate.
Do your research. It’s also smart to gather lots of information, including on vehicles and their features, the fair market value and average selling price. “When car dealers know you’ve done your homework, they are more likely to offer their best deal first,” said GoBankingRates.
Comparison shop at different dealerships. Shop around and compare what different dealerships can offer. One approach here is to “call, text or email the internet sales department of three dealerships that have the car you want” and “ask each for the total selling price, including any additional accessories that may have already been installed on the car,” said Edmunds. Then, either take the best offer or bring it to the other dealerships to see if they’ll do even better.
Improve your credit score. Another way to lower the rate you get on your next auto loan is by boosting your credit score, whether by lowering your credit utilization or fixing any errors on your credit report.
