The hype around year-end car sales can make buyers feel like they’re missing out if they don’t act fast. After all, dealers are advertising big discounts and the idea of saving money before the clock strikes midnight on New Year’s Eve is hard to resist.
But moving too quickly could mean missing out on something better or suffering buyer’s remorse. Here are six reasons why buying a car at year’s end isn’t always wise.
Also here are signs you are may need a new car.
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Car dealers often make irresistible end-of-year deals on models that are lingering on the lot, which may result in a limited selection. Although the amazing deal offered might be enticing, car buyers might not be able to find the color, features or trim level they want and end up settling for a car just to save money.
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Year-end deals may also apply to outgoing models. Dealers do this to clear the lot for incoming models. Opting for an older model can cause buyers to miss out on the newest safety features, tech upgrades or body styles that may be available on the new model.
The model year before a new model with a redesign typically depreciates about 6% to 8% faster on average, according to Edmunds. Newer models tend to get more attention in the market. However, buyers can sidestep this issue by avoiding trading or selling their older model vehicle until the depreciation levels out.
Interest rates are still high and higher loan rates can add hundreds — or even thousands — of dollars to the total cost. Buyers with lower credit scores should consider this carefully.
“With yesterday’s Fed rate cut, the bank projected two more rate cuts heading into spring,” said Sean Tucker, consumer advocate and editor for Kelley Blue Book. “When you’re car shopping, you’re likely not just shopping for a car. You’re also shopping for a loan. The best loan terms might be available next spring. That could be a reason to hold out for some.”
Buyers who want to save even more on an outgoing model might want to wait until after the first of the year. New car deals typically come out around the first of each month and dealerships may further discount any older models that are still on their lots. Additionally, the weeks and days leading up to President’s Day — Feb. 17, 2025 — often see manufacturers offering special savings on vehicles.
