The best time of year to buy a car

If you are in the market to buy a car, whether used or new, the timing of your purchase can influence how much you ultimately pay. From certain seasons to particular times of the month to specific days of the week, being mindful about when you shell out for your next set of wheels can translate into getting a better deal.

The good news: these buying windows come around more than once a year. While October through December typically marks the sweet spot for landing a great deal, buyers may also find sales around occasions like Memorial Day or Labor Day.

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, you might 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 you should 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.

As important as it is to know the best times to buy, you should also keep in mind the worst times. "Aside from federal holiday sales events, January and February are typically slow months for car sales," said Navy Federal Credit Union, and even the discounts that are offered on new cars tend to be "the smallest of the year during those two months." Weekends are also notoriously bad times to buy, as demand is "high" and you'll be "competing against the crowds for the attention of salespeople," said the outlet.

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."

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?

The question of whether this year is a good year to buy a car may also come to mind, especially after the turmoil of the pandemic and resulting supply chain shortages. As of the end of 2024, "after nearly two years of rate-raising by the Fed — and a return to normal for the supply chain — vehicle prices are finally leveling," said Bankrate. However, despite interest rate cuts by the Federal Reserve, "higher interest rates" on auto loans "will likely remain — at least until the end of the year."

So, should you take the leap now, or are you better off waiting for the new year? There are a few factors to take into consideration when making this decision.

For starters, you will want to take a 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 pay attention to is average auto loan rates, if you are planning to borrow money to help fund your car purchase. While it is hard to know for sure, you generally can get a sense of "how average loan rates have been moving," said MarketWatch. For instance, with the Federal Reserve starting to make interest rate cuts in fall 2024, now might be a good time to shop for a new car. Just keep in mind it may take a little while to feel the effects of those rate cuts, meaning they "might not reach car loan applicants until the end of the year," said Kelley Blue Book.

And lastly, take a look at your own credit score, as this "has a huge impact on the interest rates and loan options lenders offer you," said MarketWatch.

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 as you set out to purchase a vehicle 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 on a car and whether your credit needs improvement, said NPR. Further, by getting pre-approved, you'll have more leverage to negotiate a better rate on your loan.

Do your research. It's also smart to gather lots of information, both on vehicles and their features as well as the fair market value and average selling price, which you can find in sources like Kelley Blue Book. "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. On a similar note, it's helpful to 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. From there, you can take the best offer or bring it to the other dealerships to see if they'll do even better.

Improve your credit score. If waiting around for a Fed rate cut is not an option for your car-buying timeline, another way you can 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. Boosting your score "is especially helpful if it's January or February, when discounts and lower sticker prices are scarce," said MarketWatch.