Are end-of-year car deals actually a good time to buy?

As 2025 draws to a close and dealerships are trying to clear out space for new models, you might think it’s a great time to catch a deal on a used car. Before you head to the dealership, it’s important to do your homework about the state of car prices and what you can expect to see at the lot. 

We spoke with Dan Park, CEO of Clutch, which recently released its annual used car pricing report. We wanted to find out what changed with car prices this year and what shoppers should be aware of when trying to get an end-of-year deal. Basically, are you getting a good deal or are the sales a bit of slick marketing?

The state of used car prices in 2025

Like most things, the price of used cars went up in 2025, with the average cost of a used vehicle going for $33,718—4.6% higher than the previous year. But there’s a bit more to the price than what you see on the sticker. 

As the Clutch report shows, many individual models actually declined in price, but other factors pushed the overall used car average up. These factors include a move to bigger vehicles, more higher-end trims, and electric vehicles, all of which can make it harder to detect true discounts.

If you’ve been holding out till the end of the year for a good deal, be aware that prices have been dipping month by month as the year comes to a close. As Park notes, “The first step [to finding a deal] is comparing the price to similar cars with the same year, make, model, mileage, and condition—not just whether it’s been discounted.”

What to consider before heading to a dealership

It’s easy to feel overwhelmed by options when you set foot on the lot, so reduce the stress that comes with these choices by doing some research. First off, develop a realistic budget and identify models at that price point. It also helps to learn what mileage is reasonable based on a car’s age.

Some dealerships make key information like pricing context, vehicle history, and inspection details very clear to shoppers, which Park says, “…allows buyers to focus on whether the car itself meets their needs rather than uncovering details later.”

As you’re narrowing down options, don’t overlook hidden vehicle costs that can vary significantly. We’re talking insurance premiums, fuel consumption, maintenance needs, and possible repairs for the car you’re interested in.

Also, it’s easy to forget that securing financing before selecting a car can make the whole process easier. If you shop around for an auto loan and get pre-approval, you’ll be less focused on monthly payments and can instead shop for a car with high overall value.

Improve your credit score
One of the best things you can do to ensure you walk away with the best deal on a car is to have a stellar credit score. If your score could use some work, focus on paying down debt and making on-time payments in the months before you purchase a vehicle. This way, you’ll get the best possible interest rate when financing a vehicle.

Money-saving strategies for buying a car

We’ve already highlighted some simple steps you can take to save money before you head to a dealership, but once you’re there, keep these strategies in mind:

• Be flexible. Park says, “Being open to different body styles, such as sedans instead of SUVs or trucks, or to variations in trim level, colour, or optional features [which] can lower costs without compromising reliability or performance.”
• Expand your search beyond where you live. Prices for vehicles can vary widely and inventory levels across dealerships can also fluctuate. You might snag a great deal on a car in a neighboring city that you’d miss out if you were only looking locally.
• Research common concerns or issues. Before you commit to a car, read up on common complaints or repair issues that the model might be known for. In some cases, these can be minor, but if owners note expensive repairs once the car hits a specific mileage, it can be more cost-effective to choose a different car.
• Opt for a used car that comes with a warranty. You’re more likely to get a genuinely useful warranty from an automaker, rather than a third-party. So, if you’re considering a used vehicle that still has some of the manufacturer’s warranty, it might save you money down the road.
• Read contracts carefully. You don’t want to pay for add-ons you didn’t realize you were getting, so take as much time as you need to read the purchasing agreement before signing. If there are things in the contract you don’t want, don’t hesitate to speak up.

Should you wait for 2026 or buy an end-of-year model?

We posed this question to Park, who said, “Waiting doesn’t necessarily lead to better outcomes.” After all, car prices have less to do with the calendar and more to do with supply shifts. So, as dealerships try to clear space for new models, you’re likely to catch a good deal.

Ultimately, if you’re in the market for a vehicle, the best time to buy is when you see a price improvement for the type of car you want to buy. “If it fits your needs and budget, it’s often better to act with confidence than to wait for a perfect moment.” 

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