The auto industry is highly sensitive to supply and demand. When there’s more supply than demand, dealers are more willing to negotiate.
A study by the automotive website iSeeCars.com found the days and months when supply and demand favor buyers and when it hurts them. According to the study, New Year’s Eve and New Year’s Day are the most advantageous times to purchase a used car, offering 47.9% more deals than the annual average.
This finding is part of an extensive analysis of over 39 million used car sales from 2023 and 2024, which highlights the best and worst times to buy a used vehicle.
Winter months offer the best deals
The study found that the months from November through February are particularly favorable for used car buyers. During these months, dealerships often reduce prices and manufacturers lower interest rates to attract buyers, who are typically distracted by holiday festivities and colder weather.
"Car shopping slows down during the winter months, with dealerships struggling to find customers,” said Karl Brauer, executive analyst at iSeeCars. “This leads to a drop-off in used car values, making it an ideal time for buyers."
In addition to New Year’s Eve and New Year’s Day, Martin Luther King Day ranks as great time for used car deals, with 43.3% more deals than average. January stands out as the top month, offering 41.1% more deals. Other favorable times include Presidents’ Day, Christmas Eve, and the months of December and February.
Summer and spring: less favorable for deals
At the same time, the warmer months from April through August are the least favorable for finding used car deals. Father’s Day has emerged as the worst holiday for securing a bargain, with 33.1% fewer deals than average.
July 4th and Juneteenth also rank poorly for used car shoppers. According to Brauer, warmer temperatures and spring-time tax returns increase car buying activity, reducing the availability of deals.
As you may recall, used car prices surged during the COVID-19 pandemic because there were fewer new cars, due to supply chain bottlenecks. But with used car prices still nearly 30% above pre-pandemic levels, Brauer says “strategic timing” can lead to substantial savings.
What is a “good deal?” As defined by the study, a used car deal requires savings at least 5% off the estimated fair market value, or a minimum of $1,386 off the average price of $27,726. Brauer said buyers should plan their purchases during the winter months and on specific holidays to maximize their chances of securing a good deal.