When Is the Best Time to Buy a Car?

Due to the unique conditions of the automotive market these days, the best time to buy a car has become harder to predict and requires weighing your options. There are two strategies to consider in this current climate: First, you stick with your current vehicle and wait it out until the conditions are more favorable for buyers. The other is to buy now to maximize the value of your trade-in. Let's take a quick look at the state of the automotive market and see how it impacts the best time to buy a car.

Current car market conditions

The automotive market has slowly stabilized in its recovery from the semiconductor chip shortage and subsequent vehicle shortage over the past few years, which caused prices for both new and used cars to hit record highs. That said, the market has not quite returned to prepandemic levels of discounts and inventory.

"Neither of these has come to fruition yet," said Ivan Drury, director of insights for Edmunds. "They're both trending in that direction, but we're maybe two-thirds of the way there with inventory, and discounts are only half of what they used to be."

The best time to buy a car in 2024

The Fed has signaled that it will make one interest rate cut this year, though the timing is a bit unclear. The Fed is scheduled to meet in July, September, November and December. Economists are predicting that the September session holds the most promise, depending on the rate of inflation over the summer.

Given that interest rates remain high, the best time to buy a car in 2024 would be when they fall. It may not be a huge drop, but any improvement in the annual percentage rate can save you money. That said, if you're not in urgent need of a car, sitting it out on the sidelines can be smart.

"The longer you can wait, the better," says Drury. Vehicle selection has improved but still isn't great. Leasing is starting to make a comeback, but it still isn't as enticing as in the before times — unless we're talking electric vehicles, where there are solid lease deals to consider, adds Drury.

However, the disadvantage of waiting, says Drury, is that "you're losing out on the current higher trending trade-in values."

As the used market begins to transition back to some level of normalcy, trade-in values are the ones bearing the brunt, says Drury, as dealerships have to hedge their bets on depreciation while a vehicle sits on the lot. In other words, you either buy a car now while your trade-in is worth more (and deal with higher interest rates), or you wait for rates to drop but your trade-in might not be worth as much then.

When are the best times to buy a car?

• Best month to buy a car
• End of month
• End of the calendar year
• Best day to buy a car
• End of the model year
• End of the car's design cycle
• End of the car's life cycle
• Three-day weekends
• Black Friday
• Best time to buy a used car

Simply put, here's our advice: The best time to buy a car is when you need it and feel ready to buy, regardless of the time of year. With the car market, it can sometimes feel like Murphy's Law is in effect, as something inevitably challenging will always come up. Whether it's high interest rates, limited inventory or low trade-in values, car buying can be stressful, and it can take more than a month to go from deciding what to buy to actually closing the deal. Why add to that pressure by trying to squeeze your shopping into a certain day of the week or a holiday weekend when everyone has the same idea?

But if you're a bargain hunter who really wants to pinpoint the best time to buy, let's examine your options.

Best time of the year to buy a car

Best month to buy a car

In the past, December was the month with the highest discounts off MSRP, but the pandemic has upended the market and it has taken years to recover. "With the disruptions over the last two years, no seasonal trend has held up," said Drury. This is reflected in the table below, based on Edmunds data through May 2024. One positive trend to note is that the days of paying over MSRP, as seen in late 2021 and through most of 2022, seem to be behind us for now.

As a general rule, the discounts on new cars typically follow a trend that coincides with the introduction of new models. As new models hit the dealership and need to take up space where the prior year's models are sitting, the more incentivized salespeople will be to reduce the prices on the outgoing models. So far in 2024, the discounts have remained relatively stable, so all months have been viable to buy a new car. Our analysts predict that discounts should get better as the year goes on, but don't expect anything too drastic since sales appear to be on pace with 2023.

End of the month

When the month is coming to an end, dealers might be a few cars short of a sales quota that would win them a big bonus. Salespeople will have more motivation to make a deal with a buyer and might deeply discount cars, making up any money lost with the bonus. This is the time when you shouldn't sleep on the car deal. Keep in mind, however, that if the sales team already met its quota that month, salespeople may not be as motivated to give you the screaming deal you might be expecting. This is difficult to know ahead of time. But if you're in the midst of negotiating and the dealer offers you a super-low price, take a moment to ask your salesperson why the dealer is willing to "lose money" on this sale. If the reason makes sense to you, and the price is considerably better than your research says it should be, it could be a sign the dealer is trying to make a sales goal.

If you're feeling nervous about buying in a short end-of-month timeframe, test-drive the car in which you're interested earlier in the month and close the deal as the end of the month approaches. Also, many new-car incentive offers are good for a few days after the month ends, which gives you a bit of a buffer.

End of the calendar year

The end-of-the-calendar-year strategy follows the same logic as the end of the month. Dealership sales departments that have not made their sales goals for the year will want to finish off the year as close to their goals as possible. The difference here is that late December also coincides with the time that dealerships are looking to get rid of any remaining current-year vehicles to make room for newer ones.

That said, each manufacturer handles its end-of-the-year selldown differently. This means that some car dealerships will have a better selection of outgoing-year vehicles late in the year, while the pickings could be slim at others. There's always a balance to be struck between getting a better deal and having more options to choose from — rarely can you have both. Be sure to check Edmunds' Incentives and Rebates for any available customer cash rebates, low-interest incentives and lease specials.

Best day to buy a car

Early in the week: This tip is more about the level of attention you can expect from a salesperson than about getting a killer deal. Weekends are typically the busiest time at a dealership. The salesperson might be juggling multiple customers, and the finance office is likely to be a bottleneck. But if you show up on a Monday or Tuesday, there will be less foot traffic. You can ask plenty of questions and the transaction should take far less time. In some parts of the country, however, dealerships are closed on Sundays. And as a result, Monday is a pretty busy day of the week. If that's the case for you, go on a Tuesday or Wednesday.

Best times to buy a car

End of the model year

All the new model-year cars used to debut in the fall, making the end of summer a good time to shop for leftovers. These days, however, there is no unified new model-year season. For example, cars from the upcoming model year now debut as early as January of a calendar year.

Edmunds analysts say that August and September are when they generally see automakers make the most decided transition to new models. In the past, the summer months tend to correspond with a bump in incentives, particularly low APR financing on outgoing model-year vehicles.

Something to note: It's worth looking at the incoming model-year cars to see what features have changed and to get a feel for pricing. It's rare, but there have been instances when a car from the incoming model year has had better incentives than a car from the outgoing model year, particularly if you're looking to lease.

End of the car's design cycle (before a redesign)

When the manufacturer is going to continue making a certain car model but is about to redesign it completely, you will often find greater savings on the outgoing design. True, you are buying a car without the latest styling or technology, but if you're more of a bargain hunter than a trendsetter, this might not matter to you.

End of the car's life cycle (discontinued model)

Sometimes, the manufacturer announces that it will stop making a car altogether. There's potential in this situation for even bigger savings. You should know that the car will depreciate steeply if it's discontinued, but if you plan on keeping it for a while, it won't affect you too much. It's also worth looking into why the automaker is pulling the plug on a given vehicle. Is it a matter of changing tastes, or was the car truly bad in terms of performance or reliability? For an example of the former, many domestic automakers have discontinued many sedans in favor of more popular SUVs.

Best holidays to buy a car

Three-day weekends

It's hard to miss the inflatable eagles, gorillas and wacky waving tube men that dot car lots on three-day weekends, to say nothing of ads that promise "rock-bottom" prices. Does a "Star-Spangled Sale-a-Bration" mean savings for you? As we noted earlier, the traditional seasonal trends have been turned topsy-turvy, and it remains to be seen how they will play out this year.

Whether it is Presidents Day, Memorial Day, Fourth of July, or Labor Day, be prepared for a busier-than-normal showroom. Ideally, you want to do your research and test drive before the holiday and close the deal on the weekend. Or better yet, wrap up the deal on the first weekday after the weekend. Take a look at this article for a deeper dive into car shopping on a holiday weekend.

Black Friday

Black Friday is the biggest retail shopping day in the U.S., and the same shopping fervor tends to happen on car lots after Thanksgiving. Automakers and dealers will offer more incentives, discounts and "doorbusters" as a means of capturing some of that retail excitement. Black Friday also coincides with the end of the model year, which means that you'll likely see greater discounts on outgoing models throughout the month, so don't feel pressured to wrap up the deal on that one day.

If you want to shop on Black Friday, you'll need to do some pre-Thanksgiving planning, such as obtaining a value on your trade-in, getting preapproved for an auto loan from your bank or credit union, and taking test drives. Also, make sure you read the fine print on any Black Friday deal ads that seem too good to be true. If you're willing to brave the crowds, here are more tips for car shopping on Black Friday.

What time of the year do new car models come out?

These days, new vehicles are launched throughout the year, though we tend to see clusters of new models in the spring and fall.

The U.S. Environmental Protection Agency actually has rules on how a vehicle is assigned a given model year: "For engines/equipment subject to emission standards based on model years, the first day of the annual production period can be no earlier than January 2 of the calendar year preceding the year for which the model year is named, or the earliest date of manufacture for any engine/equipment in the engine family, whichever is later. The last day of the annual production period can be no later than December 31 of the calendar year for which the model year is named or the latest date of manufacture for any engine/equipment in the engine family, whichever is sooner."

In other words, a 2025 model year vehicle can be released anytime on or after January 2, 2024. Similarly, a new model can be labeled as a 2025 all the way until December 31, 2025.

Best time to buy a used car

October through December is a good time to buy a used car. These months coincide with the peak new-car buying season at the dealership, which means more trade-ins are entering the used car inventory. More trade-ins translate to a better selection of used cars — and better prices, especially if the dealership is trying to hit its end-of-year quota.

Edmunds analysts predict that used car values are beginning to return to typical levels, especially as more new car incentives begin to push down the values of late-model used vehicles. Customers and rental fleets have held onto their vehicles longer, which has translated to a used car selection that skews a few years older and has more miles as a result.

Final thoughts on when to buy a car

As we've noted, you'll find many opportunities throughout the year to get a great deal on a new car. Ultimately, the best time to get a new car is when you need one and only after you have completed your research.

Figure out the market value of the car using Edmunds tools, and factor in any incentives and rebates. Take a look at our new car pricing or used cars for sale where we rate a number of the vehicle prices to assist with negotiation and provide perspective on whether you have a fair offer. Watch for unexpected add-ons. Then make your deal. In the long run, this approach makes more sense than trying to predict the effects of weather, holidays, and the seasonality of your car purchase.

FAQs

Is December a good time to buy a car?
Yes. According to Edmunds transaction data, December has traditionally had the highest discounts from the manufacturer's suggested retail price (MSRP) for both new and used cars. This year, however, there has been a consistent level of discounts offered over all the months.

Is January a good month to buy a car?
Not if you're looking for a significant discount. January typically marks a new year for sales, and after the aggressive discounts often seen in December, dealers tend to start the year conservatively.

How do I get the best deal on a new car?
You can get the best deal on a car by knowing what the market value is and comparing it to offers you've solicited from dealers in your area. That said, there are many aspects to a "good deal" beyond the selling price of the vehicle. The terms of the loan, the trade-in offer, and the way you are treated all contribute to what we consider a good deal. Read this article for more information.

Can you negotiate the price of a new car?
Yes, in most cases you can easily negotiate on the price of a new or used car. We've found that the best approach is a data-driven one. In other words, to determine what a fair price is, know the market value of the vehicle you're interested in. Read this article on negotiating for more information. The exception to this is if you're shopping at a brand (such as Tesla) or dealer that offers fixed or no-haggle pricing.