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Best Time to Buy a Used Car Summary
According to iSeeCars.com, a data-driven car search and research company, used vehicle prices are nearly 30 percent above pre-pandemic levels. Demand for one- to five-year-old vehicles across the used car market is strong enough to keep prices at this “new normal.”
As traditional logic might suggest, used car shoppers have a higher chance of finding a deal during the fall and through the end of the calendar year.
Data from Edmunds shows that used vehicle prices are at their highest in January, dropping again in the fall. By contrast, data from iSeeCars finds January is one of the best times to look for a pre-owned vehicle.
The article below examines the best days and times to purchase a used car based on the chances of getting a good deal. Near the end, we provide tips to help you with the car-buying process.
Methodology & Percentages of a Good Deal
iSeeCars analyzed nearly 40 million used car sales from 2023 through November 2024. If anything was listed at five percent or more below iSeeCars’ estimated fair market value, it counted as a deal. For example, $27,726 was the average used vehicle price in the iSeeCars study—for such a vehicle to count as a deal, it would need to be priced at $26,340 (i.e., a savings of $1,386 or five percent).
The total number of listings and deals were aggregated nationally at four distinct periods: by month, day of the month, and day of the week, including specific holidays. At each aggregated period, the number of deals was divided by the number of cars sold, resulting in a probability of finding a deal.
These resulting probabilities were shown as a percentage difference from the overall likelihood of finding a deal on an average day. According to the iSeeCars study, used car shoppers have a 33.1 percent chance of getting a deal at any point throughout the calendar year. However, that average can be higher or lower, depending on the month or day.
“Every year, we see the price of used cars fluctuate between the highs of summer and the lows of winter,” said iSeeCars Executive Analyst Karl Brauer. “We felt it would be valuable to ensure consumers understand this trend and, hopefully, take advantage of it when buying their next used car.”
Best Times to Shop for a Used Car
Based on iSeeCars data, November through February are statistically the best months to land a deal on a pre-owned vehicle. Shoppers will find about 10 percent more deals than average during November, jumping to 32.5 percent in December. This reaffirms the conventional notion that the odds of getting a deal are higher at the end of the year.
February is similar to December’s percentage, with 31.8 percent more deals available on average. Presidents’ Day in February alone offers nearly 38 percent more deals on average.
Here is the full chart from the iSeeCars study. Based on their data, consumers can generally take a “seasonal approach” when shopping for a pre-owned vehicle. The colder the month, the lower the price is likely to be, and vice versa for warmer months and the likelihood of higher prices.
Best Months to Buy a Used Vehicle
RankMonth % More or Fewer Deals Than Average1January+41.1%2December+32.5%3February+31.8%4November+10.3%5March+7.3%6October+3.4%7September-3.5%8August-8.5%9April-16.8%10July-22.5%11May-27.8%12June-30.4%iSeeCars.com analyzed nearly 40 million used car sales from 2023 through November 2024. “Shoppers can essentially use the average temperature of a given month as a guide to used car prices,” said iSeeCars Executive Analyst Karl Brauer. “The warmer the temperature, the more you’ll pay.”
Holiday Season
Data from iSeeCars indicates that the percentage of available deals increases compared to the average during Black Friday (+28.4%), Christmas Eve (+36%), and New Year’s Eve (+47.9%).
During November and December, car dealerships are pushing to simultaneously make monthly sales goals and year-end sales quotas. Shopping during this timeframe could work in your favor at certain dealerships. While looking at the end of the month is generally good advice for the entire calendar year, your best bet might be to focus your efforts near the end of November or December.
Fall Months
If circumstances are such that delaying a purchase until the snow falls in December isn’t possible, having the leaves turn color might be enough. While data from Edmunds aligns with iSeeCars data regarding November, Edmunds finds that October is also one of the best months to buy a used vehicle.
Edmunds Senior Editor Ronald Montoya said the fall months are when dealers and automakers want to offload existing inventory to make way for incoming new vehicles of the following model year. “Financing deals and end-of-the-year promotions tend to crop up more in this timeframe, which often entices used buyers to opt for a new car instead,” Montoya explained.
The benefit is how the influx of deals on new car inventory in October and November can slow demand for used cars. This lower demand can result in a better price for those with their heart set on something pre-owned versus brand new. Bonus if a particular new model is selling like hotcakes.
“In general, the overall state of the new car market dictates the price of used cars. If new cars are selling well, they drive down prices on used cars,” Montoya continued. “When the supply of new cars was low during the pandemic, it drove up prices, which caused shoppers to gravitate towards used vehicles, which in turn drove up prices on those as well.”
Best Days to Buy a Used Vehicle
RankHoliday % More or Fewer Deals Than Average1New Year’s Eve/Day+47.9%2MLK Day+43.3%3Presidents’ Day+37.6%4Christmas Eve+36%5Thanksgiving/Black Friday+28.4%6Halloween+15.3%7Columbus Day+14.1%8Veterans Day+11.8%9Labor Day-4.4%10Mother’s Day-27.4%11Memorial Day-28%12Juneteenth-30%13July 4th-31.1%14Father’s Day-33.1%Based on iSeeCars data.
Worst Times to Shop for a Used Car
Data from Edmunds and iSeeCars overlap with regard to April and tax season, as both find either a lower chance of deals or an increase in used vehicle pricing around that time. According to iSeeCars data, the lower likelihood of finding a deal on a used vehicle extends beyond April and into August.
“Tax return season further elevates car shopping activity, with many consumers using their tax returns to purchase a new, or ‘new-to-them’ used vehicle,” Brauer said. “This lets dealers ramp prices up starting in April before they top out in mid-summer.”
Summer Months
During that April through August period, June is the most challenging, as those searching for a used car are over 30 percent less likely to find a deal than average. If a used vehicle purchase must be made over the summer, July is better than June (22.5 percent fewer deals than average). August is better yet at 8.5 percent fewer deals than average.
Despite some respite in August, when taken as a whole, the iSeeCars data shows that the summer months are some of the worst times of the year to make a used car purchase.
Father’s Day & July 4th
The findings from iSeeCars may contradict radio and TV ads promoting a “big summer savings event.” In some cases, however, those ads can and may be genuine, so consumers don’t necessarily need to dismiss them outright if they trust the dealer running the ad. The question is whether sales events for holidays like Father’s Day and July 4th provide additional savings.
According to the data, not exactly.
The two holidays are subject to the same parameters as the months they fall in. iSeeCars found 33 percent fewer deals on Father’s Day and 31 percent fewer deals on July 4th when compared to the average.
“Consumers should research the vehicle they are interested in and have a good sense of its market value before buying,” Brauer said. “If they see prices for a given car at one level in colder months, it shouldn’t surprise them to see the price rising in warmer months—but a higher-priced car in a warmer month is not really a great deal, no matter what the ads say.”
Memorial Day & Labor Day
Used car buyers will have more luck finding a deal over Labor Day than Memorial Day. According to iSeeCars data, there are 28 percent fewer deals on average during Memorial Day versus 4.4 percent fewer deals than average on Labor Day.
Like July 4th summer ads, anything promoting a Memorial Day or Labor Day sale should be taken with a grain of salt.
Should You Buy a Used Car in January?
According to iSeeCars data, January is the best time to buy a used car, with 41 percent more deals on average.
“Everything from colder weather to holiday shopping distracts from car buying, which reduces dealer activity and vehicle demand,” Brauer explained. “Lower demand means lower prices, which bottom out between November 1st and March 1st.”
What is interesting is how the data from Edmunds and iSeeCars differs with regard to January. While iSeeCars flags January as the best month for getting a deal on a pre-owned vehicle, Edmunds data shows used car values peaking in January, making it a less-than-ideal time for buyers.
“Prices tend to be high in January as dealerships look to start the year with a clean slate and hold the line on pricing,” Montoya said, adding that once fall comes back around, so do year-end manufacturer incentives for new vehicles. This seasonal cycle can benefit those who want something pre-owned, as the return of close-out sales on remaining new vehicles can lower the demand for and price of used cars.
Whether January is the best time to buy a used car may somewhat depend on what you are looking for. “In the winter months, you’re likely to get a better deal on a convertible, for example, since summer driving is probably the last thing on many people’s minds,” Montoya said.
Balloons, banners, and even giant inflatable gorillas can add some flair to car shopping, but it’s important to approach the process with a practical mindset. While finding a vehicle and driving it home for the first time can be enjoyable, make sure to do your research beforehand.
What Constitutes a Good Used Car Deal?
Despite the data above from two reputable industry sources, this question can sometimes be hard to quantify. For example, you might not be able to delay, for any number of reasons, a purchase until the end of the year or over the holiday season. If your goal was to “drive the wheels off” your current vehicle, and the wheels come off when the data says fewer deals are available, how can you proceed?
Search Area
One idea might be to widen your search beyond your immediate area. As you do, set specific vehicle parameters, including year, mileage, powertrain, and price, to help with an apples-to-apples comparison. Take a mental note of what you find locally versus a little farther away.
“If a consumer spends time looking for a deal, maybe even one outside their local market, they will get a better sense of what a car’s real market value is versus believing the sales hype at any one dealership,” Brauer said. “If they can get a good enough deal, it might justify a bus, train, or plane ticket.”
Vehicle History & Service Reports
Gather as much information as possible about the vehicle before taking a potential long-distance trip. Ask for more photos. Ask for the vehicle history report. You can also request the inspection sheet the service department generated before it went on the lot. That will tell you things like the current tire tread depth, brake pad thickness and wear, and even the condition of the wiper blades. Confirm the final price before leaving.
No matter where you are looking, be it close to home or farther away, avoid being swayed by catchy terms like “Cash Back” or “Mega Savings” or any of the sort. Compare and contrast based on the final price and condition of the vehicle.
Financing & Interest Rates
As a best practice, take into account the whole buying process. For example, credit scores are important as high interest rates can undo even the nicest discount.
“There are several ways to interpret a good deal when it comes to car buying,” Montoya said. “Getting the most discount possible is a common metric, but you can get a low price and still be saddled with a high interest rate.”
Your Trade-In Value
If you have a vehicle you plan to trade, keep in mind the old but established tactics some salespeople at car dealerships do.
We can often have an unwitting emotional attachment to our current vehicle and value it more than it’s worth. Some dealers play on this by “inflating” the value of your trade, meaning they “show” you a high number on your current vehicle in the hopes you will ask fewer questions about the price of what you intend to buy.
To avoid this, ask if the number for your trade is the “real cash value.” If so, the value of your trade-in will not change whether you purchase the most or least expensive vehicle on the lot. Or, ask to see the “trade difference,” which is the cost of the used vehicle you plan to buy minus the value of your trade. That way, you are seeing an actual final number.
Just as used car prices ebb and flow, it’s the same with your trade-in value. For example, those with a mint condition SUV that is the right model, mileage, and trim level may find a dealer willing to offer a little more because they know it will sell quickly among their local customer base.
Maintenance Costs
Pre-owned vehicles priced below market value are usually that way for a reason. While it may be a great deal, you might have to contend with high mileage, which increases the odds of maintenance costs after purchase. They may be priced lower because they will soon need new tires or brakes, which will come out of your pocket.
Instances like this can be a wash because the great price must be balanced against the need for additional expenses in the near future.
Lemons
Likewise, some used cars are priced low because of their condition. The previous owner could have been a smoker, or the vehicle could have a cracked windshield, worn interior, or other damage. During the test drive, you might notice an issue with the steering, the AC not blowing cold, or an instrument cluster filled with check engine lights. If any of this is the case, it’s probably best to keep looking.
“Many people would tell you that paying somewhere around the market value of the vehicle, getting good customer service, and completing everything in a short time would constitute a ‘good deal’ for them,” Montoya said. “It isn’t always about getting to the rock-bottom price.”
“Regardless of how good a deal seems, a pre-purchase inspection is always a good idea when buying a used car,” Brauer added. “This should be done at a third-party shop, not associated with the seller.”
Extended Warranties: Yes or No?
Schools of thought vary on extended warranties, so consider your personal situation and preferences more than anything. Whereas a new model year vehicle will have full factory warranty, that’s not the case with pre-owned. Although certified pre-owned vehicles can be a great value, if you are searching for something a little older, its factory warranty is likely to have expired.
An extended warranty can be advantageous if you intend to keep something for more than five years or drive more miles than average, such as having a long commute to work. After conducting thorough market research and competitive comparisons, our team picked the provider above and a few others as the best extended car warranty companies today.
When shopping for an extended warranty, request sample contracts and pay attention to the section explaining the claims process. Avoid contracts that are non-transferable or difficult to cancel. To maximize the benefits of any extended warranty, consider these insider tips from a repair shop owner. Not every pre-owned vehicle will qualify for an extended warranty, but if you are looking at something gently used, it might.
Auto Loan Rate Comparision Tool
Securing your own financing before visiting the dealership is a good idea. The tool below will help get you started.
Original article: When is The Best Time to Buy a Used Car?
