From unsold new 2025 models to negotiating tactics, a car-buying expert shares six ways to save before the year ends.
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Buying a new car is a major financial commitment. The average price of a new vehicle is around $50,000, according to Kelley Blue Book. But as the year winds down, shoppers could find some unique opportunities to save.
“The fourth quarter is a great time to buy a car,” said Tony Quiroga, Editor-in-Chief of Car and Driver Magazine.
That’s because dealerships are making room for newer models while working to meet year-end sales targets. Quiroga said those targets can come with significant financial incentives from automakers, giving dealers another reason to negotiate.
Here are some expert tips to help you get the best deal before the end of the year.
Look for new 2025 and 2026 models
While 2027 vehicles are arriving at dealerships, some lots still have brand-new 2025 and 2026 models waiting to be sold.
“The ’27s are arriving to dealers now and the ’26 cars are still around, so they’re very motivated to get those cars moved out,” Quiroga said.
Consumer tip: Pay attention to how many of the same vehicles are available in your area. If several dealerships have the model you want, you may have more negotiating power. You can also use older inventory as leverage when asking for a lower price.
Don’t overlook a brand-new car if you’re shopping used
A used car isn’t always the better deal.
Quiroga pointed to one example he calls the “Toyota effect.” Popular Toyota models, including the Camry, Corolla and Corolla Cross, tend to hold their resale value so well that a two- or three-year-old used model may cost nearly as much as a brand-new one.
Factor in manufacturer incentives and discounts on leftover inventory, and buying new could make more financial sense.
“So you might spend $3,000 more, but it might make sense for you to not have the used car and to have a full new car warranty,” Quiroga said.
Consumer tip: Before purchasing a used vehicle, compare its price with discounted new models of the same vehicle. A slightly higher upfront cost could be worthwhile when you factor in warranty coverage, mileage and financing incentives.
The upside of used electric vehicles
For shoppers open to going electric, the used market could offer substantial savings.
Quiroga said many electric vehicles leased two or three years ago are now returning to dealerships, increasing the supply of pre-owned EVs.
One example is the Volkswagen ID.4. Quiroga said models that originally cost between $40,000 and $50,000 can now be found for about $20,000 to $22,000 on the used market.
Another potential advantage is battery warranty coverage. Federal rules generally require EV batteries to carry warranties of at least eight years or 100,000 miles, so shoppers should verify the remaining coverage and terms for a specific vehicle.
And, of course, charging access matters. Quiroga said drivers who can charge at home may find EV ownership more convenient and affordable, while relying on public fast chargers can significantly increase costs. “If you live in a home where you can install a level two charger, you can generally charge your car overnight and you’ll have all the charge you need for the next day, and you’ll have your range completely replenished,” said Quiroga. “It’s a little bit more complicated for folks who don’t have charging at home. Level three, which are the really fast public chargers that can quickly recharge your battery from like 10 to 90% in half hour and a half hour, like 45 minutes. Those can be really expensive and on par with, filling your tank with gas.”
Consumer tip: Before purchasing a used EV, check its battery health, remaining warranty, driving range and whether you have convenient access to affordable charging.
Negotiating begins before you arrive at the dealership
You don’t have to wait until you’re sitting across from a salesperson to start negotiating. Quiroga recommended calling or emailing several dealerships to request pricing on the vehicle you want.
“The dealers that are willing to give you numbers over the phone or are willing to send you a text with an out-the-door-price or or an email with an out-the-door-price are really the dealers that you want to deal with before you go into the dealership,” said Quiroga.
The out-the-door price includes the negotiated vehicle price, taxes, dealership fees and any additional products or services.
Watch for extras such as vehicle tracking systems, ceramic coatings and interior protection packages. Quiroga said some of these add-ons can cost shoppers hundreds or even thousands of dollars.
Consumer tip: Ask for an itemized out-the-door price in writing. Review every fee and ask which add-ons can be removed before agreeing to the deal.
Shop around for financing and look for special incentives.
Getting a good deal on the vehicle itself is only part of the equation. Your financing terms can significantly affect how much you ultimately pay.
Quiroga warns that dealerships can make additional money by marking up interest rates offered by lenders.
Here’s how it works: A lender offers the dealership a “buy rate”, which is the interest rate the lender approves for financing the vehicle. The dealership may then offer the buyer a higher “sell rate,” keeping the difference as additional profit.
That’s why Quiroga recommends getting pre-approved through a bank or credit union before visiting a dealership.
Dealerships can also offer promotional rates can offer meaningful savings for qualified buyers, particularly on vehicles dealers are eager to sell.
Consumer tip: Compare the annual percentage rate, loan term and total repayment amount, not just the monthly payment. Ask whether promotional financing can be combined with other discounts or rebates.
Be patient.
If you’re willing to wait until December, timing could work in your favor. Quiroga said that automakers often set sales targets for dealerships. Reaching those targets can unlock financial bonuses, creating additional motivation for dealers to close sales before the end of the year.
His strategy? Consider making an offer in the middle of December and giving the dealership time to think it over. As year-end deadlines approach, a dealer that initially rejected your offer may become more willing to negotiate.
Patience is essential, Quiroga said, especially with such a major purchase.
Editor’s note: Car and Driver is a property of Hearst, which also is the parent company of this news station.
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