What Is the Cheapest Month to Buy a New Car?

December is typically the cheapest month to buy a new car, with the deepest discounts often appearing in the final two weeks of the year—especially the last few days of December and the final day of the month. That’s when year-end incentives, model-year closeouts, and sales quotas converge, pushing dealers and automakers to offer their most aggressive pricing. While individual results vary by brand, model, and local supply, December tends to deliver the best combination of sticker discounts, factory rebates, and financing offers compared with other months.

Why December Delivers the Biggest Discounts

Several structural forces make December a standout for car shoppers. Dealers are closing the books on the calendar year, clearing out prior model-year inventory, and trying to hit monthly, quarterly, and annual targets that unlock factory bonuses. Automakers simultaneously push “year-end event” incentives, which increases discounting on many models.

• Model-year changeovers create pressure to move outgoing inventory before it ages further on the lot.
• Dealer and automaker sales targets (monthly/quarterly/annual) can trigger bonus money that effectively subsidizes lower prices.
• Holiday sales campaigns concentrate factory rebates and special APRs in late Q4.
• Showroom traffic often dips around the holidays, giving serious buyers more leverage.
• Industry trackers (e.g., J.D. Power, Edmunds, Cox Automotive, TrueCar) consistently show incentive spending peaking in Q4, with December frequently at or near the top.

Together, these factors typically produce a rare overlap of high supply, strong incentives, and heightened seller urgency—conditions that are uncommon earlier in the year.

Close Contenders: Other Times That Can Be Nearly as Cheap

If you can’t wait for December, several other windows often deliver pricing that’s close—especially when tied to inventory changes or sales-cycle deadlines.

• Late September to November: End-of-model-year clearance as new model years arrive.
• Early January: Remaining prior-year vehicles can be discounted further to clear the books.
• End of quarter (late March, June, September): Target-driven deals can surface as deadlines loom.
• Major holiday weekends (Memorial Day, Labor Day, Black Friday/Thanksgiving, July 4): Coordinated national promotions lift incentives.
• When a redesign launches: Outgoing generations often see steeper markdowns to make room for the new model.

While these periods can rival December under the right circumstances, they depend more heavily on local inventory and the competitive landscape for specific models.

Important Caveats in the 2024–2025 Market

Even with December’s advantage, pricing is still highly model- and region-dependent. Recent supply recovery has improved discounts overall compared with the tight 2021–2023 period, but demand for certain vehicles remains strong, and incentives vary widely—especially for popular trucks, SUVs, and some hybrids.

• High-demand or limited-supply models may offer minimal discounts year-round; timing helps less than flexibility on trim or color.
• Electric vehicles: The federal clean vehicle credit can be applied at the point of sale (when eligible) via participating dealers, effectively lowering the upfront price; eligibility can change mid-year, so verify VIN-specific qualification.
• Inventory has broadly improved, but availability still swings by region and trim; aged in-stock units see better deals than factory orders.
• Rebate vs APR trade-offs matter: A cash rebate may beat a promotional APR—or vice versa—depending on your credit and loan term.
• Fees and add-ons: Some stores offset discounts with markups, accessories, or “protection” packages; scrutinize the out-the-door price.

The bottom line: December’s discount trend holds, but your actual savings hinge on what’s on the lot, incentive eligibility, and the specifics of your deal structure.

Tactics to Maximize Savings—Whatever Month You Buy

Timing helps, but disciplined shopping often saves as much as the calendar. The following steps can strengthen your negotiating position and lower the out-the-door price.

1. Time your outreach for leverage: Get quotes in the last week of the month, then re-engage in the final 24–48 hours—especially late in the day.
2. Collect multiple written “out-the-door” quotes (including all fees) via email/text from competing dealers; use the best to negotiate with others.
3. Target aged inventory (60–120+ days on lot) and in-stock vehicles; ask for the unit’s in-service/arrival date to gauge aging.
4. Track and stack incentives: Combine national, regional, loyalty/conquest, military/college, and dealer cash where allowed; read fine print on captive-finance requirements.
5. Separate the trade-in: Get independent bids (e.g., CarMax, Carvana, local wholesalers) and use the best offer to avoid blending discounts with trade value.
6. Verify EV/hybrid benefits: Check real-time eligibility for federal, state, and utility incentives by VIN and buyer profile before signing.
7. Be flexible on trims, colors, and options: The closest match already on the lot is usually cheaper than a custom order.
8. Police the paperwork: Decline unwanted add-ons and compare the final purchase agreement to the quoted out-the-door price.

Used together, these tactics can narrow the price gap between a “good” month and the best month—and sometimes beat December-level deals on specific vehicles.

Data Snapshot

Industry reporting from sources such as J.D. Power, Edmunds, Cox Automotive, and TrueCar indicates that incentive spending has trended higher since the tight supply years of 2021–2022, with Q4 typically registering the richest incentives and the largest average discounts off MSRP. December frequently leads the year, followed closely by late Q3/early Q4, although model-level exceptions are common.

How to Read the Numbers

For the most accurate read on your target vehicle, watch local days’ supply, the discount from MSRP on comparable listings, and current factory incentives (especially stackable ones). Monitoring these data points weekly during Q4 can help you spot when a deal turns from good to exceptional.

Summary

December is generally the cheapest month to buy a new car, with the steepest discounts often appearing in the final days of the year. Late Q3 and early Q4, major holiday weekends, and early January can come close—especially for outgoing models. Regardless of timing, maximize savings by targeting aged in-stock vehicles, stacking incentives, getting multiple out-the-door quotes, and keeping trade-in and add-ons separate from the purchase price.

What months do car prices drop?

Used cars are usually at their lowest prices from October through December, covering both late fall and early winter. This is a time when demand drops and dealerships aim to move vehicles off the lot.

How much can you negotiate on a new car?

You can expect to negotiate a discount ranging from a few hundred dollars to a few thousand dollars off the MSRP, with the final amount depending on the vehicle’s popularity, dealer incentives, and your negotiation skills. To get a good deal, research the MSRP, available manufacturer rebates, and local market prices, then make a reasonable, low opening offer and focus on the out-the-door price. 
What to Negotiate

• The Vehicle’s Price: Focus on the total out-the-door price to avoid hidden fees. 
• Dealer Fees: Challenge or negotiate excessive dealer fees, but understand that some fees like destination charges are fixed. 
• Add-ons: Request that accessories like floor mats or even services like free oil changes be included in the deal. 

Negotiation Tactics

• Research, Research, Research: Know the MSRP and compare prices at different dealerships. 
• Understand Incentives: Look for manufacturer incentives, rebates, and special financing offers that can lower the price. 
• Make a Low Opening Offer: Start with a realistic but low offer based on your research. 
• Focus on the Total Price: Don’t get caught up in the monthly payment; ask for the lowest out-the-door price. 
• Get Pre-Approved for a Loan: Having an outside loan offer gives you leverage and can motivate the dealer to match it. 
• Be Prepared to Walk Away: Your willingness to leave can pressure the dealer to make a better offer. 
• Be Patient: Dealers often use tactics to make you raise your offer; you can allow your target price to increase slowly and in small increments. 

What’s the best month to buy a brand new car?

The best months to buy a new car are typically October through December, with December often being the most ideal due to year-end sales quotas, the arrival of new models (pushing out outgoing inventory), and holiday-related incentives. Other good times include the end of any quarter (March, June, September, and December) and around major holidays like Memorial Day and Black Friday. 
Why these months are good:

• Year-End Quotas: Opens in new tabSalespeople and dealerships work to meet annual sales goals in December, which can lead to greater willingness to negotiate prices. 
• Outgoing Inventory: Opens in new tabAs new model years arrive in the fall, dealers want to clear out the previous year’s models to make room, creating opportunities for buyers to find deals. 
• Holiday Sales: Opens in new tabMany manufacturers and dealerships offer special holiday promotions and incentives during the late fall and early winter months to attract buyers. 
• End-of-Quarter Sales: Opens in new tabIn addition to yearly goals, dealerships also have monthly and quarterly sales targets, with the end of each quarter (March, June, September, and December) being prime negotiation times. 

When to buy for specific vehicles: 

• Trucks: Opens in new tabSeptember may be a good time for truck purchases due to dealership promotions.
• Sedans and SUVs: Opens in new tabOctober through December can be particularly beneficial for these vehicle types, often featuring year-end clearance incentives.

What’s the slowest month for car dealerships?

Busiest in the summer time, and slower in the fall/winter. January and February being the slowest months.