When Is the Best Time to Buy a Car?

Buying a car is a major investment, so it makes sense that you want to get the most for your money.

One way to get a good deal on a new or used car is by figuring out the best time to buy a car. Are cars cheaper in the winter or in the summer? Is it true that you'll get a better deal if you buy a car at the end of the month?

Experts say the best time to buy a car is when you need one (and when your budget permits). But there are certain times of the year, month and even day when you're more likely to get a good deal. Let's look at some of the factors that affect car prices:

Seasonal considerations

Does season matter when buying a car? As supply and demand fluctuate throughout the year, so do prices and availability. Here are some things to consider when deciding the best month to buy a car:

Spring

Advantages

• As the weather turns nice, demand for new cars picks up. This means more trade-ins, more private sales and a greater selection of used cars for you to choose from.

Disadvantages

• Compared to the winter months, spring car sales are fairly strong, making it harder to get a low price.

Summer

Advantages

• Some dealerships offer great deals on long weekends. Labour Day Weekend is considered a particularly good weekend for car shopping.

Disadvantages

• Demand is high in the summer, so great deals are harder to find and sellers may be less motivated to negotiate.

Fall

Advantages

• New cars are released, giving you the opportunity to get the latest features.
• Outgoing models go on sale to make space for new models.

Disadvantages

• While outgoing models often go on sale in September and October, the deals usually aren’t as good as at the end of the year. If you can wait, it might be worth holding out for November or December.

Winter

Advantages

• Dealerships offer holiday sales and end-of-year sales in November and December.
• January and February are slow months for car sales, so dealers are usually happy to negotiate on last year’s models.
• Demand for used cars is generally low during the winter, so private sellers may be more motivated to make a deal.

Disadvantages

• Unlikely to get a good deal on new models during the winter months.
• Shorter days and snowy weather make car shopping and test driving more challenging.

End-of-month and end-of-year deals

Two major factors in car pricing are dealership sales targets and new car model release cycles. Here's how you can use them to your advantage to get a better deal:

• Most car dealers have monthly sales goals they need to meet. If you shop for a car at the beginning of the month, dealers may not have much motivation to cut you a good deal. But at the end of the month, a dealer trying to meet a sales target may be more likely to negotiate.
• New car models tend to be released in August, September and October, so you can often find a good deal on outgoing models as the new ones roll in. Look out for clearance sales around the holiday season in November and December.
• Towards the end of the year, dealers are doubly motivated. They're looking to meet year-end sales goals and need to clear out older models. Plus, around the Christmas and New Year's holidays, sales tend to be pretty slow, giving car shoppers an edge when negotiating.
• Time of day and weather can also play a part in getting a good deal. If you visit a dealership on a busy weekend, the dealers may not have the time or patience to negotiate. Try shopping early in the week, on a weekday evening, or on a rainy day, when the lack of customers can make dealers more motivated to negotiate.

Holiday sales events

Just like other retailers, car dealerships run special promotions around the holidays. From long summer weekends to the winter holidays, if you time it right, you can find great deals on both new and used cars. Here's how to take advantage:

• In Canada, popular holidays for car shopping include Black Friday, Boxing Day and long weekends in the summer. You'll likely find lower prices on Black Friday and Boxing Day, but Labour Day weekend is known for having better inventory and decent deals.
• Car makers celebrate their own sales events throughout the year. For savings on new cars, look for promotions like Toyota Red Tag Days (usually in the Spring) and Happy Honda Days (late November to early January).
• Buying a car during holiday sales can be a great way to save money but it can also be hectic. Dealers are likely to be busy juggling multiple customers. To avoid frustration, get prepared before the holiday: Decide which car you want, perform a test drive and get your financing paperwork together before the day you plan to purchase.
• To avoid crowds and maximize negotiating potential during the holiday season, try shopping on quieter days around Christmas and New Year's. Experts recommend New Year's Eve as the ideal day to buy a car as dealers are often eager to boost sales before the end of the year.

New model releases

Whether you're shopping for a new car or a used one, it can be helpful to keep track of when new models are released. Here's why:

• When new models are released, dealerships usually offer lower prices on outgoing models. This is especially true when the new model has been redesigned or has significant upgrades over the existing ones.
• While new models can be released at any time during the year, most hit dealerships between August and October. If you have your eye on a particular model, ask your local dealer when they're expecting the latest version.
• When new models arrive at the dealerships, sales tend to pick up. This means used car shoppers can expect to find a greater selection of trade-ins to choose from.
• For the best pricing on outgoing models, it may be wise to wait until December, or even until January or February of the next year. The longer old inventory sits on dealer lots, the more motivated they become to sell it. But this does have some risk—while you're waiting for the right price, the car you want may sell out.

Economic factors

When considering the best time to buy a car in Canada, another thing to keep in mind is the overall financial picture.

• If you're financing or leasing a vehicle, interest rates can have a huge impact on both the monthly and overall cost of a vehicle. The interest rates on car loans and financing deals are connected to bank interest rates. As long as the Bank of Canada rate stays high, financing rates are also likely to be fairly high.
• When negotiating, don't just think about the price of the car. It's also smart to ask about any special financing deals with lower interest rates.
• To reduce monthly payments and the total amount of interest paid, you can pay more upfront. A larger down payment today means paying less overall. You can also reduce interest costs by trading in your existing vehicle as part of your car deal.
• The strength of the economy can also affect the price of cars. When the Canadian dollar is weak, car prices tend to go up. And when the price of oil increases, so does the cost of delivery. To reduce the impact of a weak economy on car prices, consider purchasing a car built in Canada.
• Over the pandemic, two trends emerged: Increased demand for used cars and shortages of new cars. This meant higher prices for used cars and fewer deals on new models. Even now, some car makers are still experiencing short stock on popular vehicles. If you're interested in a vehicle that is in demand or is waitlisted, you are unlikely to have much bargaining power.

Personal considerations

Now that you've familiarized yourself with the best time to find a deal on a car in Canada, it's time to consider if it's the right time for you to buy a car.

• Can you afford to buy a car now? Make a monthly budget to determine how much you can afford to spend on a car each month. Make sure to include gas, insurance and maintenance.
• Do you have a down payment saved? Putting money down now can save you more in the long run. You can also trade in or sell your current vehicle to help offset the cost of a new (or new-to-you) car.
• Is there a particular reason you want to buy now? Maybe your lease is ending, your car warranty is about to run out or you're planning a cross-country road trip. No matter the reason, make sure to give yourself plenty of time. Car shopping is stressful, so try not to rush into a deal.
• Are you prepared? To get a great deal on a car, it pays to be informed.
• Research different models, weigh the pros and cons of used or new, test drive vehicles, get your finances in order and decide when you want to buy and how much you're willing to spend. When it comes to car shopping, being well-informed definitely pays off.

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