The Cheapest Month to Buy a Car

December—especially the final week of the month and New Year’s Eve—is typically the cheapest time to buy a car in the United States. Dealers and automakers stack year-end incentives, clear out outgoing model-year inventory, and push hard to meet monthly, quarterly, and annual sales targets, creating unusually strong bargaining leverage for buyers.

Why December Delivers the Deepest Discounts

Multiple forces converge at year’s end to push prices down, even as many shoppers are distracted by the holidays. Inventory pressure, sales quotas, and model-year changeovers all align, and manufacturers often sweeten deals with higher incentives and bonus cash.

The list below outlines the primary factors that make December stand out for car buyers.

• Sales quotas and bonuses: Sales targets reset on monthly, quarterly, and annual cycles, and December closes all three. Hitting these goals can trigger dealer and salesperson bonuses, motivating extra-aggressive pricing.
• Model-year closeouts: New model years typically hit lots in late summer and fall. By December, dealers are eager to move remaining prior-year vehicles with bigger discounts.
• Holiday promotions: Automakers traditionally roll out year-end sales events with elevated incentives, which data from industry analysts consistently shows peaking late in the year.
• Inventory management: Carrying costs rise on slow-moving units. December is a clean-up period before the books close, encouraging sharper deals.
• Tax-year considerations: Some business buyers aim to purchase before year-end for tax purposes, which can also spur dealer competition to capture those sales.

Taken together, these dynamics routinely make late December the most buyer-friendly window for both advertised incentives and dealer-level negotiation flexibility.

How 2024–2025 Market Conditions Affect Timing

After pandemic-era shortages, U.S. dealership inventories improved through 2024 and into 2025, and manufacturer incentives broadly increased, restoring more normal bargaining power for shoppers. While interest rates have remained elevated compared with the late 2010s, year-end cash rebates, dealer discounts, and loyalty/conquest offers have generally been richest in December. Electric vehicles add another wrinkle: ongoing price competition has produced sizable rebates on some models year-round, but traditional year-end stacking of incentives still concentrates the best combined deals in December.

Best Days and Times Within December

If you can narrow your shopping to specific days, certain windows amplify the December advantage. The recommendations below reflect common dealership sales cycles and buyer traffic patterns.

1. Last 3–5 days of December (especially New Year’s Eve): This is often the single strongest day for discounts as dealers chase monthly, quarterly, and annual targets simultaneously.
2. End-of-quarter overlap: March, June, and September can be good; December is best because it closes the month, quarter, and year at once.
3. Weekdays over weekends: Mondays through Thursdays tend to be slower, giving sales staff more time and flexibility to negotiate.
4. Late in the month, early in the day: Arriving with a firm, data-backed offer and time to complete paperwork can help you secure end-of-month approval without the stress of closing-hour deadlines.

While timing helps, arriving prepared—with preapproved financing, competitive quotes, and a clear out-the-door target—matters more than the specific hour you walk in.

Exceptions: When Another Month Can Be Cheapest

December is usually the value king, but certain scenarios can shift the best month for your specific purchase, depending on the model, powertrain, and your tax situation.

The list below highlights notable exceptions where another month may beat December.

• Outgoing model-year clearance (September–October): If you want last year’s model and your preferred spec is still on lots, fall clearance can rival or beat December—especially on slow sellers.
• EV tax credits in January (U.S.-specific): For eligible electric vehicles, the federal clean vehicle credit has been available at the point of sale since 2024, which can make early January effectively cheaper for qualifying buyers and models.
• New-model launch incentives: Occasionally, automakers support new launches with attractive financing or introductory rebates earlier in the year.
• Holiday promos outside December: Memorial Day, Labor Day, and Black Friday can bring competitive incentives, though they typically fall short of year-end stacking.
• Local demand dips: In snowbelt regions, severe late-winter weather can depress showroom traffic, sometimes prompting extra dealer flexibility.

If one of these conditions applies to your target vehicle or situation, you may find a better opportunity outside December—especially when combining manufacturer incentives with favorable financing or tax benefits.

Strategies to Maximize Savings—Whatever Month You Buy

Timing opens the door, but disciplined shopping delivers the biggest savings. These tactics help you capture the best possible total cost, not just a lower sticker price.

• Shop multiple dealers: Request itemized, out-the-door quotes from several stores and expand your search radius to include high-volume dealers.
• Separate the pieces: Negotiate price, financing, trade-in, and add-ons independently to avoid “payment packing.”
• Line up financing: Get preapproved (credit union, online lenders) so you can compare APRs against any subvented rates or cash rebates.
• Target in-stock units: Cars on the lot cost dealers money every day; flexibility on color/options can unlock bigger discounts.
• Use market data: Track incentives on automaker sites and compare market prices via reputable guides and listing platforms to set a realistic OTD target.
• Optimize your trade-in: Obtain written buy offers (e.g., from national used-car retailers) to strengthen your negotiating position.
• Mind the full ownership cost: Factor insurance, taxes/fees, maintenance, charging or fuel, and depreciation—not just the purchase price.

Executing these steps often saves more than timing alone, and they stack especially well with the year-end discount window.

Summary

For most U.S. buyers, December—particularly the final week and New Year’s Eve—is the cheapest time to buy a car, thanks to peak incentives, model-year closeouts, and aggressive quota-driven pricing. That said, fall clearances can be best for outgoing model years, and January may win for eligible EVs using point-of-sale tax credits. Regardless of the month, prepare quotes, financing, and targets in advance to lock in the strongest overall deal.

What month is best to buy a car cheaply?

The months of October, November, and December are generally the cheapest to buy a car, as dealerships offer year-end clearance events and discounts to meet sales quotas before the new year begins and new models arrive. You can also find deals during specific holidays like Memorial Day, Labor Day, and Black Friday, and sometimes at the end of the first quarter (March) or third quarter (September). 
Why these months are cheaper:

• Year-End Clearances: Opens in new tabDealers want to sell off remaining inventory from the current calendar year and model year to make room for incoming models and meet sales goals. 
• Manufacturer Incentives: Opens in new tabAutomakers often offer special financing options and incentives during this period to encourage sales, which can lead to additional savings. 
• End-of-Quarter Sales: Opens in new tabThe end of the year (December) is also the end of the quarter, and dealers are motivated to hit their quarterly sales targets. 

Other times to consider:

• September: Dealerships begin pushing to sell the current year’s models in September to make way for the next model year’s arrivals. 
• Holiday Sales Events: Major holidays, such as Memorial Day, Labor Day, and Black Friday, often feature special sales events where you can find good discounts on cars. 

Tips for getting the best deal:

• Do your research: Identify the specific car model you want and research when new models typically arrive to time your purchase with outgoing model discounts. 
• Secure financing beforehand: Get pre-approved for a loan before visiting the dealership to give you more negotiating power. 
• Be prepared to negotiate: Dealerships can be busy during these peak times, so being prepared with your desired car and financing can help you finalize the purchase. 

What month is it cheaper to buy a car?

Generally speaking, the best time to buy a used car is at the end of the month, especially at the end of a quarter: March, June, September, and December. Dealers will be keen to meet their sales targets and, in turn, may offer better deals.

What is the 20% rule when buying a car?

The main goal is to determine the down payment, monthly car payments time frames, and transportation costs to optimize them. The rule recommends making a 20% down payment on the car, taking four years to return the money to the lender, and keeping transportation costs at no more than 10% of your monthly income.

Which month has the lowest car price?

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.