The Secret Sauce to Scoring a Great Deal: When’s the Best Time to Buy a Used Car?
Buying a used car can feel a bit like online dating—you’re sifting through endless profiles, trying to spot the red flags, and hoping you don’t end up with a total lemon. But just like dating, timing can make all the difference. Knowing when to buy can save you hundreds or even thousands of dollars, plus get you better financing options. In this guide, we’ll break down the best times of the year, month, and even day to snag a deal on a used car. We’ll also dive into market trends for 2024 and 2025, and give you tips on how to play your cards right.
Understanding the Used Car Market in 2024–2025
Why Timing Matters
The used car market has been a bit of a rollercoaster lately, thanks to factors like supply chain disruptions and rising interest rates. While prices have started to stabilize, they’re still higher than pre-pandemic levels. Timing your purchase right can help you dodge inflated prices and high loan rates. Plus, dealerships tend to offer more attractive financing options during certain times to move inventory faster.
Market Trends to Watch
- Increased Supply: The supply of used cars is expected to improve in 2025 as new car production ramps up, putting downward pressure on prices.
- Interest Rates: Rates are still higher than they were pre-pandemic but are expected to slowly decrease in late 2025, making it a bit more affordable to finance a car.
- EVs in the Used Market: The surge in electric vehicles has started to influence used car prices, especially for hybrids and older EV models.
The Best Times of the Year to Buy a Used Car
End of the Calendar Year
December is like Black Friday for car shoppers. Dealerships are eager to hit their year-end sales targets and make room for new models, which means they’re more willing to negotiate. Expect discounts, lower interest rates, and even some freebies like extended warranties or lower fees.
The Financial New Year (July in Australia)
The end of the financial year is prime time for used car deals. Dealerships want to clear their inventory before closing their books, making June and early July a hotbed for discounts and promotional financing rates.
Model Changeover Periods
When new models hit the showroom, last year’s stock becomes yesterday’s news. This usually happens between September and December. Even if you’re looking at used cars, dealerships often lower prices to compete with the influx of trade-ins.
The Best Days and Times to Buy
End of the Month
Salespeople have monthly quotas, and as the deadline approaches, they’re more likely to cut deals to hit their targets. Popping by a dealership in the last week of the month could score you a better price.
Weekdays Over Weekends
Weekends are busy for dealerships, which means less time to haggle. Stopping by on a Tuesday or Wednesday means you’re likely to get more personalized attention and a bit more room to negotiate.
Timing of the Day
Heading to the dealership an hour or two before closing can also work in your favor. Salespeople eager to wrap up a sale before clocking out might be more flexible with pricing.
How Seasonal Trends Impact Used Car Prices
Summer vs. Winter
- Summer: Prices for convertibles and sports cars tend to spike in warmer months due to higher demand.
- Winter: 4WDs and SUVs become hot items when the weather turns chilly, but sedans and hatchbacks can see lower prices.
Post-Holidays Sales
January is a bit of a hangover month for car sales, which means dealerships are eager to move inventory and may offer lower prices or better financing rates to attract buyers.
Financing Your Used Car at the Right Time
Interest Rate Trends for 2024–2025
Interest rates for car loans are predicted to dip slightly in late 2025, making it worth your while to wait if you can. Keeping an eye on rate trends and being ready to act quickly can save you a bundle on interest payments.
When to Get Pre-Approved
Getting pre-approved for a car loan before hitting the dealership gives you the upper hand. The best time to apply for pre-approval is about 30 days before you plan to buy—long enough to have your financing sorted but not so long that your credit pull affects your score.
Using Online Tools for Car Loan Comparisons
Websites like Automotive Finance offer comparison tools that help you weigh different car loan options based on interest rates, fees, and loan terms. These tools can help you lock in a loan before prices or interest rates shift.
Insider Tips for Getting the Best Deal
Be Ready to Pounce
Good deals don’t last long. If you see a used car with a great price and financing terms, it’s best to act fast—especially during end-of-year or EOFY sales.
Cash is Still King
If you’re in a position to pay cash, you’re in a stronger bargaining position. Many dealerships are open to knocking down the price if it means a guaranteed sale without financing delays.
The Power of a Trade-In
Trading in your current car can lower the cost of your new ride, but timing matters here too. The value of trade-ins tends to drop at the end of the year when dealerships are flooded with used inventory. If you’re planning to trade in, doing so mid-year might get you a better deal.
The Early Bird Gets the Car: Why Timing is Everything
Buying a used car is all about striking while the iron’s hot. Whether you’re chasing end-of-year discounts or mid-week dealership visits, timing your purchase can make a massive difference in price and financing. Do your homework, keep an eye on market trends, and don’t be afraid to walk away if the deal doesn’t feel right. After all, the right car at the wrong time is still the wrong car.
Now, go forth and score that deal!
FAQs
When is the worst time to buy a used car?
The start of the year (January and February) can be rough due to fewer promotions and less inventory after end-of-year sales. Demand usually outpaces supply, which means higher prices.
Is it better to buy from a dealer or a private seller?
Dealerships offer more financing options and consumer protections, while private sellers might offer lower prices but less security. It depends on what you value more—price or peace of mind.
How can I predict if used car prices will go down?
Keep an eye on market reports and interest rate trends. When new car production ramps up and interest rates drop, used car prices tend to follow.
Should I wait for interest rates to drop before buying a used car?
If you can wait and interest rates are expected to drop soon, it might be worth it. Even a small decrease in rates can save you a significant amount over the life of your loan.
How do I know if a used car is fairly priced?
Use online valuation tools like RedBook and compare similar models at various dealerships. Also, request a vehicle history report to ensure the price aligns with its condition and mileage.
If you need expert advice, don’t hesitate to reach out to us. We’re here to guide you through every step. Contact Us and take charge of your financial future today!
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☎️ (02) 7900 3288
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