Study suggests bargain shoppers might rethink that holiday car purchase

As we move deeper into December, many people begin thinking about holiday shopping. And they often think about trying to get a good deal on a used car.

However, those bargain-seeking shoppers might not be flocking to your store showroom or dealer website this month if they use the guidance recently shared by iSeeCars.

The beginning of the year provides the most deals, said iSeeCars executive analyst Karl Brauer.

“This is likely because a glut of trade-ins don't hit the marketplace until after the holiday season,” Brauer said in a news release.

On the other side of the coin, Brauer added, consumers are least likely to find a good used-car deal in the summer and early fall months.

Those are some of the pieces of information to come out of a recent study by car search engine iSeeCars. Here’s another: The best time of year for consumers to find a used-car deal, with savings of at least 5% or $1,100, is Martin Luther King Day. The month of January is the second-best time, and the month of February is third, followed by New Year’s Eve/New Year’s Day.

For its study, iSeeCars analyzed more than 32 million used car sales comparing specific times of the year including holidays and months of the year. The company also compared days of the month and week to calculate whether consumers would be able to find more or fewer deals than average. iSeeCars defined a deal as savings of 5 percent or more. That amounts to more than $1,100 off the price of the average used car at $22,008.

What is the worst time to buy a used car? Although July 4th is a time for fireworks, it’s a dud for car buying. That date is the least desirable time to buy, with 18.6% fewer deals on average. Next on that “worst” list are June, July, Father’s Day, September, and Memorial Day.

“New-car shoppers are likely holding out for the next model year vehicles, which come out in late summer and early fall,” Brauer said. “As a result, they aren’t trading in their used cars, so inventory is lower than normal.”

The study then moves on to discuss holidays. Again, Martin Luther King Day leads that category, with 39.2% more deals than average. The next top holidays for used car shopping are New Year’s Eve/New Year’s Day, Christmas Eve, Veterans Day and Thanksgiving/Black Friday.

“While Martin Luther King Day isn’t typically thought of as a major retail holiday, dealers tend to make a big push to boost sales in early winter by offering bigger deals, and this holiday is a great reason for them to pump up their promotions — especially as it is observed on a Monday, which means shoppers have a long holiday weekend to find the car they want to purchase,” Brauer said.

The best car buying days occur at the beginning of the year after automakers have introduced new models, Brauer said.

“This is a popular time for new-vehicle buyers who want to take advantage of generous incentives and rebates on outgoing model-year vehicles, and as a result, there’s a high supply of used cars that dealers need to get rid of,” Brauer said.

The worst holidays to buy a car? The Fourth of July, Father’s Day, Memorial Day, Mother’s Day and Halloween.

Moving on to the best months to buy a car, iSeeCars lists them in this order: January, February, December, March, and November. The worst months: April, October, May, August, September, July, and June.

One last tip from iSeeCars: Buy your next car on a weekday.

If you visit a dealership on a weekday, you will usually see more deals and lower prices than on weekends. That is because foot traffic is lower on the weekdays.

“And therefore dealers discount more cars to drive demand,” Brauer said.

But although weekdays are a better car-buying time than weekends, they are not much better. Weekdays show only 0.2% more deals than average. Weekends offer just 0.3% fewer deals.

Brauer noted that despite the current inventory shortages, car buyers planning on buying a used vehicle during the holiday season will still be able to find deals.

“However, waiting until the beginning of the year will likely provide more significant savings at car dealerships as used car inventory becomes more stable,” he said. 

Best times to buy a used car