Are year-end automotive deals actually an excellent time to purchase?

We spoke with Dan Park, CEO of Clutch, which recently released its Annual Used Car Price Report. We wanted to seek out out what’s modified in automotive prices this 12 months and what buyers should look out for when attempting to get a year-end deal. Are you generally doing good business or are the sales just clever marketing?

The state of used automotive prices in 2025

Like most things, used automotive prices rose in 2025, with the common cost of a used vehicle being $33,718 – up 4.6% from the previous 12 months. But there’s just a little more to the value than what you see on the sticker.

As the Clutch report shows, many individual models are literally priced higher, but other aspects have driven up the general used automotive average. These aspects include the move to larger vehicles, higher-end features and electric vehicles, all of which might make it harder to identify real discounts.

If you’ve got been waiting until the tip of the 12 months for an excellent deal, bear in mind that prices will drop month-over-month because the 12 months ends. As Park notes, “The first step [to finding a deal] compares the price to similar cars of the same year, make, model, mileage and condition – not just whether a discount was given.”

Related: Should you purchase a brand new or used automotive?

What it is best to consider before going to a dealer

Upon entering the property, it is easy to feel overwhelmed by the choices. So reduce the stress that comes with these decisions by doing just a little research. First, develop a practical budget and discover models at that price point. It also helps work out what mileage is acceptable based on a automotive’s age.

Some dealers present necessary information similar to pricing context, vehicle history and inspection details very clearly to buyers, which, in keeping with Park, “…allows buyers to focus on whether the car itself meets their needs rather than uncovering details later.”

As you chop down your options, remember about hidden vehicle costs, which might vary significantly. We speak about insurance premiums, fuel economy, maintenance needs, and possible repairs for the automotive you are interested by.

Plus, it is easy to forget that securing financing before selecting a automotive could make all the process easier. By shopping around for a automotive loan and getting pre-approved, you may focus less on monthly payments and as a substitute have the option to buy a automotive with a high overall value.

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Improve your credit rating
One of the perfect things you’ll be able to do to make sure you get the perfect deal on a automotive is to have great credit. If your bottom line could use some work, concentrate on paying off your debt and making payments on time within the months before you purchase a vehicle. This means you get the perfect possible rate of interest when financing a vehicle.

Saving strategies when buying a automotive

We’ve already highlighted some easy steps you’ll be able to take to lower your expenses before heading to a dealer. However, when you’re there, keep the next strategies in mind:

• Be flexible. Park says, “Be open to different body styles, such as sedans rather than SUVs or trucks, or to variations in trim levels, colors or optional features.” [which] can reduce costs without compromising reliability or performance.”
• Expand your search beyond where you reside. Vehicle prices can vary greatly and inventory levels at individual dealers also can fluctuate. You may have the option to get a fantastic deal on a automotive in a neighboring town that you just would miss if you happen to only searched locally.
• Research common concerns or problems. Before selecting a automotive, research any common complaints or repair problems the model could also be known for. In some cases these will be minor, but when owners notice costly repairs once the automotive reaches a certain mileage, it might be less expensive to decide on one other automotive.
• Choose a used automotive with a guaranty. You usually tend to get a very useful warranty from a automotive manufacturer than from a third-party. So if you happen to consider a used automotive that also has a number of the manufacturer’s warranty, you might have the option to lower your expenses later.
• Read contracts fastidiously. You don’t desire to pay for extra services you didn’t know you were getting. So take as much time as vital to read the acquisition agreement before signing it. If there are things within the contract that you don’t need, don’t hesitate to talk up.

Should you wait until 2026 or buy a year-end model?

We asked this query to Park, who said, “Waiting doesn’t necessarily lead to better results.” After all, automotive prices have less to do with the calendar and more to do with shifts in supply. So if dealers attempt to make room for brand new models, you’ll likely get an excellent deal.

Ultimately, if you happen to are on the lookout for a vehicle, the perfect time to buy is whenever you see an improvement in the value of the kind of vehicle you ought to purchase. “If it suits your needs and budget, it’s often better to act confidently than to wait for the perfect moment.”

About Jessica Gibson

Jessica Gibson is a private finance author with over a decade of experience in online publishing. She enjoys helping readers make informed decisions about bank cards, insurance, and debt management.