Why December Is Still the Best Month to Buy a New Car
December is traditionally considered the best month to buy a new vehicle, and industry experts predict that the trend will continue this year.
The reason is simple: Dealerships scrambling to hit quarterly or annual sales goals tend to offer the steepest discounts. That makes December a sweet spot for car shoppers. The last week of the year, in particular, is often said to be the best week to capitalize on a good deal.
Dealers run holiday car sales events around the Christmas and New Year holidays. These promotions often give shoppers a choice between cash back or subsidized financing.
Jenni Newman, editor-in-chief at Cars.com, notes that automakers often go all-out with advertising for promotions like Lexus's "December to Remember" sale. They use these events to try to motivate shoppers.
The biggest obstacle for shoppers is still price. New car costs have inched higher following the implementation of auto tariffs. The average new car now costs $49,766, according to Kelley Blue Book.
Experts say if you need a new car, late December could be the best time to buy. However, to find a great deal, you have to know where to look — and you may need to be open to 2025 models, which dealerships are eager to sell as winter approaches.
"We see a lot of incentives across the board as automakers are looking to move those older model years off the lots," Newman tells Money. "Shoppers should definitely look into those opportunities."
How to find a deal on a new car in December
In the new car market, the end of any quarter is typically a good time to shop. Salespeople facing end-of-quarter targets may be more flexible on price than at other times of the year. And if you have a trade-in, they may give you a more generous offer.
Experts stress that deals in December will vary by brand. Charlie Chesbrough, chief economist at Cox Automotive, tells USA Today, "I would expect those brands with abundant inventory (Stellantis) will have to lean in with some good offers. But I wouldn't expect much from those brands in short supply, like Toyota or Honda."
Newman suggests looking at vehicles that are being discontinued, such as the Subaru Legacy or the Acura TLX, for potentially larger discounts. "These are vehicles that automakers have decided not to move forward with," she says. "There could be opportunities for good deals there as well."
Auto loan conditions are also improving as the Federal Reserve cuts rates, which indirectly affects car lending. Car shoppers with high credit scores were eligible for 0% financing offers on more than 40 cars last quarter, according to RealCarTips.com. Additional discounting later in the month should help more shoppers find vehicles they can afford.
"There are definitely deals to be had," Newman says.
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