Why December is the Best Time of the Year to Buy a Car

End-of-Year Deals, Incentives, and Lower Prices

If you're in the market for a new car, timing can make all the difference. While deals and promotions happen year-round, December stands out as the best time to buy. Why? It’s the end-of-year push for dealerships to meet sales quotas, and for many sales teams, selling just one more unit can secure larger vehicle allocations from manufacturers for the following year. Let’s explore why December is a golden opportunity for car buyers and how you can make the most of it.

1. The End-of-Year Sales Push
Car dealerships operate on annual sales cycles, and December is their last chance to close out the year with strong numbers. Many dealers have targets to meet, not just for their own sales goals but also to earn better incentives from manufacturers.

• Allocation Incentives:
  Manufacturers reward dealerships that hit or exceed their annual sales quotas with larger allocations of popular models for the next year. This creates extra motivation for dealerships to sell as many cars as possible before the year ends.
• Pressure to Move Inventory:
  Dealers are eager to clear out current-year models to make room for next year's inventory. This urgency often translates into deeper discounts for buyers.

2. December-Specific Discounts and Promotions
December is packed with incentives that make it the most budget-friendly time to buy a car:

• Holiday Sales Events:
  Promotions like “Year-End Sales Events” or “Season of Savings” are designed to attract customers with aggressive pricing, cash-back offers, and low financing rates.
• Manufacturer Incentives:
  Automakers often provide additional rebates or dealer cash incentives in December to help dealers hit their quotas.
• Tax Benefits:
  Buying a car before December 31st may allow you to claim tax deductions for the current year, particularly if you’re purchasing for business purposes.

3. Access to Better Deals on Current-Year Models
By December, dealerships are focused on clearing out current-year models to make space for next year’s inventory:

• Model Year Closeouts:
  If you’re not particular about having the latest model, December is the best time to score deals on vehicles from the outgoing model year.
• Negotiation Leverage:
  Dealers are more willing to negotiate to move cars off their lot, especially for models that have been slow to sell.

4. A Buyer’s Market
The combination of dealer quotas, manufacturer incentives, and inventory turnover creates a perfect storm for buyers:

• Low Traffic:
  December isn’t typically a busy month for car shopping, giving buyers more individual attention and better bargaining power.
• Motivated Sales Teams:
  Salespeople are motivated to close deals to meet their personal and team goals for year-end bonuses.

5. Pro Tips for Buying a Car in December
To maximize your savings and make the most of this ideal buying period, keep these tips in mind:

1. Research in Advance:
   Know the market value of the car you want and explore year-end promotions before stepping into the dealership.
2. Shop at the End of the Month:
   The final week of December, particularly between Christmas and New Year’s Eve, is when dealerships are most desperate to meet their sales goals.
3. Focus on Current-Year Models:
   Ask about deals on outgoing models, as these will have the steepest discounts.
4. Be Flexible:
   If you’re open to different trims, colors, or features, you’re more likely to find a deal.
5. Secure Pre-Approved Financing:
   Having a loan pre-approved gives you more negotiating power and helps you avoid higher interest rates from the dealer.

6. Why Dealers Are Willing to Cut Prices
For dealerships, selling one more car in December can have long-term benefits:

• Better Allocations:
  Manufacturers allocate inventory for the next year based on dealership performance. Selling additional units can ensure a dealer gets more high-demand models.
• Increased Bonuses:
  Hitting or exceeding sales quotas often comes with lucrative manufacturer bonuses, making it worthwhile for dealerships to discount a car just to make the sale.

7. Why This Matters for You
Understanding the motivations behind December’s sales push empowers you as a buyer:

• Bargaining Power:
  Knowing that dealers are under pressure gives you an edge in negotiations.
• Opportunity for Savings:
  Between dealer discounts, manufacturer incentives, and tax benefits, December offers unmatched savings compared to any other time of the year.

Conclusion
If you’ve been waiting for the perfect moment to buy a car, December is your golden opportunity. With dealerships eager to hit quotas and move inventory, the month is packed with deals that can save you thousands. Whether you’re eyeing a new vehicle or looking for an upgrade, timing your purchase during this end-of-year rush ensures you get the best value.
​
At Victory Auto Body and Paint in Burbank, California, we’re here to help you keep your new vehicle looking its best. From protective coatings to repairs, our expert team is dedicated to maintaining your car’s appearance and performance. Contact us today to learn more about our services!