When is the best time of year to buy a car?

October kicks off the three-month window that experts generally contend is the best time of the year to purchase a car. Although buyers might find sales throughout the year, such as around Memorial Day or Labor Day, October through December typically marks the sweet spot for landing a deal.

This year, however, may fall outside of that norm — at least for buyers who plan to finance their purchase — given the Federal Reserve's recent moves to start slashing its benchmark interest rate. "Eventually, the rate drop will help dent car loan interest rates, though not soon enough for shoppers looking to take out auto loans right now." It will potentially take "several months to reach borrowers who finance a car," said Kelley Blue Book. It is possible "relief could bring at least a little cheer before the end of the year for auto loan interest rates," though "if you can wait," it is preferable, as "more relief could come if the Fed cuts the rate further."

Still, if you are not financing your next car or if waiting is not an option, shopping according to the following timeline can go a long way toward ensuring you get the best deal.

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When can you get the best deal on a car?

As mentioned, 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.

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.

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." Since "ultimately, they need to sell more of their current stock to make space for next year's models," this means that "if you're willing to buy a car that someone just handed back to the dealer after their lease ended, or if you're fine with a slightly older model, you can certainly save a bundle on a used car this fall."

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 pandemic. "Throughout 2021, new and used car prices rose steeply as consumers felt the impacts of COVID-19 and microchip shortages," said MarketWatch.

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 making 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.