You should buy a car when it is hardest to sell it. Let’s take a look at how the months of the year affect the cost of a new and used car.
How Seasons Influence the Value of Used Cars
Changes in the market are altering the motivation of used car sellers. It is reasonable to understand when is the best period to acquire a used vehicle to make the most out of this purchase. Do not forget that in every season, you can get to know all the vehicle history thanks to the FaxVIN service. So, let’s figure out during what period it is most profitable to buy a used car.
If buying a used car is not an urgent matter for you, and you can plan it in advance, it is useful to know about the seasonal factor, which can save you significant amounts.
There are two distinct seasons a year when used cars are sold like hot cakes, and their prices rise. And there are two seasons during which it becomes problematic to sell a car, which affects prices in favor of buyers.
Spring: High Demand, High Prices
Spring is a bustling time in the used car market, with an increase in demand driven by factors such as novice drivers getting their first car or families looking to upgrade. The warmer weather also means more people are out and about, which boosts the number of potential buyers. Due to the high demand, prices for used cars tend to rise. Sellers, particularly those with desirable models, can afford to be pickier about buyers and less willing to negotiate on price. As a buyer, it can be difficult to find a deal during this period unless you’re looking for a specific model or have flexibility on color, condition, or features.
Tip for Buyers: If you’re looking to purchase a used car in spring, be prepared to pay top dollar. It’s often best to start looking a bit earlier or later in the season to avoid this peak demand period.
Summer: Slower Sales, Potential for Discounts
While the spring rush fades, summer is a time when the market slows down. Many potential buyers are busy with vacations, family trips, and outdoor activities, which decreases the demand for cars. Sellers might be looking to offload vehicles before the end of the season, making it a good time to negotiate lower prices.
However, selling in the summer can be tricky, as fewer buyers are actively searching for a car. Sellers may need to be patient, which could work in a buyer’s favor.
Tip for Sellers: If you need to sell a car during the summer, be prepared for a longer sales cycle. You may need to lower your asking price or consider offering incentives like free delivery or a warranty to attract buyers.
Tip for Buyers: As a buyer, take advantage of the slower market. You may be able to find a good deal on a used car, especially if you’re flexible with your model preferences or are willing to negotiate hard on price.
Autumn and Winter: Best Time to Buy
Autumn and winter are the best times of year to buy a used car. As the year progresses, many sellers are eager to offload vehicles before the end of the year, especially if they are trying to avoid a car becoming a year older, which can significantly affect its resale value. Sellers in autumn are motivated to sell, knowing that their vehicle’s value will drop when it turns a year older, so they may be more willing to negotiate.
Tip for Buyers: Autumn and winter represent the sweet spot for car buyers. You’ll find a larger selection of vehicles on the market, and you’ll have more negotiating power as sellers try to clear out inventory before the new year. December is especially ripe for discounts as dealerships and private sellers are aiming to make their final sales before the year ends.
Tip for Sellers: If you are trying to sell in winter, be aware that demand tends to dip as the weather gets colder. However, if you price your car correctly and market it to the right audience (e.g., snowbirds heading south for the winter), you can still find buyers. Just be ready to make some price adjustments if necessary.
From the buyer’s point of view, autumn and winter are the best periods of the year when you can safely choose a car from a variety of options and count on good bargaining.
In December, sellers can drop the price to have time to buy a new car in January — during this time, there are great discounts. Therefore, if you are ready to buy a car right away, you can bargain and discount 5-10% of the original cost.
What If You Are a Seller?
Every car owner reaches the moment in one’s life when there is a necessity to sell a vehicle. There can be many reasons for this:
- The car was in an accident,
- An owner does not like a vehicle anymore,
- It is outdated, or
- There is a new car that an owner wants to buy.
And it is when an owner is challenged by the question of how to sell a car. After all, everyone wants to do it quickly, profitably, and get the maximum amount of money out.
The process and speed of selling a car are influenced by many factors. There are basic rules, following which, the purchase will be profitable and fair. We suggest following the below recommendations:
- Consider the sales season: Above, we have already outlined the high seasons for sellers and buyers. However, it is still worth remembering that even though the market is not so vivid in summer, someone can still be looking for a vehicle and become a new owner of the vehicle you are selling.
- Sell honestly: Don’t try to fool a potential buyer. If the car has flaws or problems, it is better to say about it right away. This will save you from further negativity that will appear if you sell a “magnificent car without an accident and which has never been in a repair shop”, but in fact, it turns out that it is not so, to put it mildly. Therefore, tell about the condition, advantages, and disadvantages of the machine, even if it is not beneficial for you. After all, a buyer will find out the truth, and you will lose the chance to sell a car because of trying to hide the defects.
What About New Cars?
New car prices fluctuate throughout the year as well, and understanding these trends can help buyers get the best deal.
January and February: Year-End Clearance
January and February are prime months for purchasing new cars. Dealerships often want to clear out last year’s inventory to make room for new models arriving in March. To do this, they offer steep discounts—sometimes as high as 10-20%—and bundle deals like free accessories, maintenance, or even electronics. Buyers can often negotiate great deals on cars from the previous year that are still in excellent condition.
Tip for Buyers: If you’re looking to buy a new car, January and February are the best months for deep discounts. Take advantage of the year-end clearance sales and negotiate hard for a better price.
March: The Calm Before the Storm
By March, new cars for the current year start arriving at dealerships. Although the excitement of the year-end clearance sales is over, prices for the previous year’s models are still low. Many dealerships are looking to move older inventory before the newer models take over the showroom. However, there are fewer additional incentives available at this time.
April and May: Full Price, No Discounts
Once new models have arrived in full force, the deals become fewer and farther between. At this point, dealerships have fewer incentives to discount new cars. The market stabilizes, and consumers are expected to pay full price for vehicles. If you can’t find the exact car you want in the spring, it may be better to wait until later in the year when dealerships are more likely to offer promotions again.
June and July: Mid-Year Lull
In June and July, car dealerships often face a dip in foot traffic as many people are on vacation or distracted by summer activities. To compensate for lower demand, some dealerships might offer limited-time promotions, discounts, or even add extra value like free maintenance packages to attract buyers.
Tip for Buyers: The summer months may offer some of the best deals on new cars, especially for those willing to negotiate or shop during slower sales periods.
August to November: Rising Demand
As fall sets in, dealerships see an increase in car sales as people return from vacation and start focusing on purchasing a new car. By now, most of the newer models are widely available, and the demand begins to push prices back up. If you’re looking to buy a new car during these months, be prepared for fewer discounts and more competition for popular models.
December: Year-End Deals
December is another opportunity to score a good deal, but the situation is more complex than January and February. While dealerships will still offer some discounts to clear out inventory before the new year, many of the promotions are tied to holiday sales events and may not be as good as the deals in January.
Tip for Buyers: If you shop during the holiday season, be aware that not all discounts are created equal. Do your research on the car’s true value and be prepared to walk away if the offer seems too good to be true.
