Why December Still Offers the Best New Car Deals

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December has long been known as the optimal month for purchasing a new vehicle, and this trend is expected to continue this year. Dealerships, eager to meet quarterly or annual sales targets, typically offer the most significant discounts during December, making it an ideal time for car shoppers. The final week of the year is often cited as the best time to secure a great deal.

During the holiday season, dealerships run special car sales events around Christmas and New Year’s, offering shoppers the choice between cash back incentives or subsidized financing options.

Jenni Newman, editor-in-chief at Cars.com, points out that automakers heavily promote sales events like Lexus’s “December to Remember” sale to entice shoppers. Despite this, the major hurdle for shoppers remains the price, with the average cost of a new car now standing at $49,766 according to Kelley Blue Book.

Industry experts advise that late December is the ideal time to purchase a new vehicle, especially for those willing to consider 2025 models. Dealerships are motivated to clear out older inventory as winter approaches, resulting in attractive deals for consumers.

“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

Typically, the end of any quarter is a good time to shop for a new car. Salespeople are often more flexible on pricing as they strive to meet quarterly targets. If you have a trade-in, dealerships may also offer more generous trade-in values.

Experts note that the availability of deals in December varies by brand. Charlie Chesbrough, chief economist at Cox Automotive, suggests that brands with ample inventory, like Stellantis, are likely to offer attractive deals. On the other hand, brands in short supply, such as Toyota or Honda, may not have as many incentives.

Newman recommends exploring vehicles that are being discontinued, such as the Subaru Legacy or Acura TLX, as they may come with larger discounts. “These are vehicles that automakers have decided not to move forward with,” she explains. “There could be opportunities for good deals there as well.”

As the Federal Reserve cuts rates, auto loan conditions are improving, indirectly impacting car lending. Car shoppers with high credit scores may be eligible for 0% financing offers on various models. Further discounting towards the end of the month is expected to help more shoppers find affordable vehicles.

“There are definitely deals to be had,” Newman assures.