Don’t Buy a Used Car This Time of Year
Written by
James Holbach
Edited by
Levi Leidy
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Buying a used car is usually a wise move financially — most people have heard the statistic that a new car loses around 10% of its value the minute you drive it out of the lot. After the first year, depreciation rises to around 20%, so it’s easy to see why you’re probably getting a better deal when you buy used.
That doesn’t mean you shouldn’t employ some strategy when buying a used car. Although prices have fallen from the historic highs they spiked to in 2021, prices on average are higher than they have been at any time prior to the pandemic. Taking the time to do your research will help you feel confident you’re getting the best price possible. There are times of the year when purchasing a used car can be less favorable, and understanding the seasonal ebb and flow of the used car market can save you serious money.
The Worst Time To Buy a Used Car
So what exactly is the worst time of year for prospective used car buyers? To some degree, it depends on what is most important to you. Richard Brauns is the co-founder of JKR Advertising & Marketing, a firm that specializes in the car dealership industry. He’s also a former dealer himself. He shared the time of year he considers the worst for buying a used car.
“The period after tax day and before the new models are introduced — approximately May through September — could be viewed as the worst time to shop for a quality preowned vehicle, simply because there will likely be a smaller number of them from which to choose,” Brauns said. In addition to making it less likely you’ll find the car you want, these low inventory levels will drive prices higher and make negotiating tougher.
The Best Times To Buy a Used Car
Knowing what times to avoid is only half the battle — what about the best time to buy, if there is one?
“Auto dealers make a concerted effort to ensure their lots are flush with as much preowned inventory as possible early in the calendar year. That’s because there is typically a surge in used-car sales during that time, as customers often use their tax returns for a down payment. So as far as selection goes, this is a good time to shop,” Brauns said.
When it comes to getting a good deal, high inventory levels are definitely important. At the same time, when there’s a lot of buyers it can put upward pressure on prices. For those who are willing to sacrifice some selection for the best prices, later in the year might be your best bet.
“Typically, there’s also a good selection of preowned vehicles during the fall season, when many new cars are introduced. When this happens, the leftover current year models are heavily discounted, which leads to additional trades taken in by dealers,” Brauns said.
Tips for Buyers
Beyond the timing, there are plenty of other strategies you can follow to find the car you want at a price you’ll feel great about. Money expert and financial blogger Andrew Lokenauth shared his top tips for getting a good deal — and a quality vehicle.
First and foremost, he says, do your research. Once you’ve identified the car you want, review listings online for that make and model to get a decent estimate of what the price range should be. Test drive the vehicle on different days. This will allow you to get a better feel for the car as well as getting a different sales experience. Getting a vehicle history report can help you uncover any major issues in the car’s past. Finally, have a knowledgeable friend or trusted mechanic inspect the vehicle for any hidden problems.
Most people dread haggling with a salesperson over the price — the rise of menu pricing for cars has proved that — but the simple truth is that you are going to get a better deal if you negotiate.
Rodney Yo of Traffic Safety Institute gave this advice for a successful negotiation: “Be prepared to negotiate the price and don’t rush into a decision — take your time to make an informed choice. Be ready to walk away if a dealership isn’t negotiating or coming down to a price that fits your budget. There will be other cars,” Yo said.
Hit the Road
Obviously, the best time to buy a used car shouldn’t be the sole factor influencing your decision. Regardless of the season, always conduct thorough research, set a budget, inspect and test drive the vehicle and be prepared to negotiate. Taking the time to do it right ensures you’ll be on the road with a car you love at a price you can also feel good about.
More From GOBankingRates
