The Worst Time to Buy a Car
Generally, the end of the month and the end of the year are the best times to buy a new or used car. Find out when to avoid car shopping here.
Written by Shannon Fitzgerald
Reviewed by Jessica Barrett
The best and worst time to buy a car depends on local inventory and demand. However, you’ll generally want to avoid purchasing a car in late spring and early summer and aim to buy a car toward the end of the month or end of the year.
So, you’ve done your research and figured out your budget. You’re finally ready to put some money down on that snazzy new or used car for sale in the nearby lot. But before you take out a
car loan
and head to the dealership, you may want to check your calendar. Car prices vary depending on when you buy. If you can hold out a little longer, that
Nissan Sentra
of your dreams might actually cost you less. RECOMMENDED
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To give you a hand,
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, has put together an outline of the best and worst times to buy a new or used vehicle. Ready to see when you’re most likely to get a sweet deal? Let’s take a look. Best times to buy a used car
The best time to buy a used car is usually when there are more trade-ins occurring and more incentives for automakers or car dealerships to sell cars for less. Typically, this will be during the last four months of the year or the very beginning of the new year. Car shoppers are often trading in old vehicles during this time, and dealers are making room for the new model year’s inventory.
That said, factors like supply chain issues and the global pandemic continue to have an impact on the new car market—which affects the used car market in turn. The supply at used car dealerships has grown increasingly unpredictable. Prices have also inflated, making it less clear when and where car buyers might find the best deals.
Because you can generally expect better prices when inventory is high and dealers are trying to meet quotas or clear out their stock, the end of the month and the end of the quarter are good times to go car shopping.
You may also find that sales events surrounding holidays like Memorial Day, Labor Day, and New Year’s Eve offer better prices. Check with your local used car dealerships to see what sort of regional sales may be going on.
Worst times to buy a used car
While higher trade-in rates can improve the odds of getting better used car deals, you also need to be careful. Experts suggest avoiding car buying during periods when there are peak levels of trade-ins and sales, like tax refund season (between President’s Day and Memorial Day). Because dealers predictably sell higher numbers of cars during these times, they’re less likely to negotiate deals.
On the flip side, May through August can also be a bad time to buy used cars due to a lack of trade-ins. Most new car models roll out in late summer or early fall. So, consumers often wait to trade in vehicles until that time, leading to a lack of inventory in the middle of the year.
MORE: 7 things to look for when buying a used car
Best times to buy a new car
If you’re looking to buy a new vehicle, the end of the year is going to be the best time to score great deals.
Not only are automakers and dealerships trying to make room for new cars during the last quarter, but they’re also trying to cash in on the holiday car shopping trend. Car prices generally run lower as a result to help incentivize holiday season car purchases.
Unlike used car hunting, you don’t have to worry about trade-in supply when buying new. While the automakers’ supply chain will impact inventory—and therefore pricing—you’ll want to pay most attention to the motivations of the dealership itself.
For example, just before a new model’s release, car dealers tend to clear out current models—resulting in lower prices for buyers. Similarly, the salesperson might receive a bonus if they meet end-of-month sales quotas. So, you’ll be more likely to land a bargain by opting to buy a new car as the month is closing out.
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Worst times to buy a new car
As you might expect, the worst time to buy a new car is when demand is high and/or supply is low. In the new car market, this is typically in the spring when an influx of drivers buy new cars for the summer or when new models are first released.
You’ll want to hold off on purchasing that just-released sedan or SUV for safety reasons, too. If the vehicle is too new to have been rated, there’s no way of knowing whether it’s worth the investment or if it’ll end up being a headache of recalls and repairs.
Unfortunately, trying to buy a new car during a pandemic isn’t a great idea either. Over the last year or so, the auto industry has faced severe chip shortages due to factory closures, which has resulted in an unprecedented low supply and high demand. Both new and used vehicles are selling for inflated prices as a result.
Tips for getting a good deal on a car
Whether you’re looking to score a used Chevrolet or you’re holding out for next year’s Honda HR-V electric vehicle, here are some tips to get the best price available.
Look for dealer incentives
You’ll want to pay attention to when dealers are more motivated to clear out inventory. Typically, this happens at the end of the month—when salespeople receive bonuses for meeting monthly quotas—and at the end of the year.
In the new car market, dealers also tend to clear out current models just before new models are released.
Wait for the end of the year
Dealers serving both the used and new car markets are more likely to promote sales during the last few months of the year. Not only is this due to a turnover of inventory before the new year, but sellers also will want to take advantage of holiday-season shoppers. Demand also tends to be lower in winter months than in warmer, spring months.
Browse used car listings
With local car inventories still recovering from pandemic chip shortages and higher demand, it’s a good idea to keep an eye on used car listings for a better idea of inventory and deals. You can do so online through sites like
Kelley Blue Book
and Edmunds
or directly through local dealerships’ websites. How to find cheap car insurance for your new-to-you ride
Finding a new or used car for an affordable price can be extremely tricky, especially as we continue recovering from the COVID-19 pandemic. Fortunately, finding affordable
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FAQs
What month is the cheapest to buy a car?
You can generally find the best deals on cars in October, November, and December—with December bringing the cheapest prices. That said, local inventory and sales will vary from dealership to dealership whether you’re buying a used or new vehicle.
Is now a good time to buy a car?
Unfortunately, due to factory closures during the ongoing COVID-19 pandemic, the auto industry is facing unprecedented supply shortages and higher demand. Because of this, now is not a great time to buy a car. Though experts are hopeful buying conditions will even out by 2024, car buyers today can usually find the best deals during the last few months of the year.
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