Year-End Car Deals: Should You Buy Now?

As 2025 winds down and dealerships make room for next year’s models, many buyers expect to find attractive deals on used cars. Before you visit a lot, it pays to be prepared: understand current used-car pricing trends, what influences advertised discounts, and how to evaluate whether an end-of-year sale is a real bargain.

We spoke with Dan Park, CEO of Clutch, which recently published its annual used car pricing report. Park helped explain what changed in 2025 and what shoppers should consider when hunting for an end-of-year deal. The central question: when a dealer shows a “discount,” is it truly a lower price or just marketing?

The state of used car prices in 2025

Overall, used vehicle prices rose in 2025, with the average sale price reaching $33,718 — about 4.6% higher than the prior year. That headline, however, hides important detail. The Clutch report shows that while many specific models actually declined in price, other shifts pushed the average upward.

Key factors that elevated the overall average include a higher share of larger vehicles, more premium trim levels, and increased interest in electric vehicles. These trends raise typical transaction amounts, which can make advertised “discounts” less obvious unless you compare like-for-like vehicles.

If you’re waiting for end-of-year markdowns, note that prices have generally trended downward in the closing months of the year. As Park advises, “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.” That direct comparison is the most reliable way to judge true value.

Related: Should you buy a new or used car?

What to consider before heading to a dealership

Arriving at the lot with a clear plan reduces stress and helps you spot real savings. Start by setting a realistic budget and identifying models that fit that range. Learn typical mileage expectations for the vehicle’s age and use that to judge advertised examples.

Dealers who present clear pricing context, vehicle history reports, and inspection results make it easier for buyers to focus on whether a specific car meets their needs, rather than digging for hidden issues later. As you narrow choices, remember to account for ownership costs beyond the sticker price: insurance premiums, fuel economy, scheduled maintenance, and the likelihood of repairs.

Financing matters. Obtaining pre-approval or shopping for a loan before you pick a car simplifies negotiation and lets you evaluate vehicles based on total value rather than being driven by monthly payment figures. A strong credit profile typically yields better loan terms; if your score could improve, focus on paying down balances and making timely payments in the months before buying.

Improve your credit score
One of the best ways to secure a better auto loan rate is to strengthen your credit score in advance. Reduce debt, maintain on-time payments, and avoid taking on new credit right before applying for financing.

Before you sign, inspect the vehicle history report, confirm recent service and any outstanding recalls, and consider having an independent mechanic perform a pre-purchase inspection. These steps help reveal potential future expenses that can outweigh a seemingly lower price.

Money-saving strategies for buying a car

Use these practical tactics to improve your chances of saving money on a used vehicle:

• Be flexible. Being open to different body styles, trim levels, colours, or optional features can lower costs without sacrificing dependability. Park suggests considering alternatives like sedans instead of SUVs if they meet your needs.
• Expand your search area. Inventory and pricing vary across regions. A car in a nearby city may be priced more competitively, and traveling for the right vehicle can be worthwhile.
• Investigate common model issues. Read owner forums and reliability reports to learn about expensive repairs or recurring problems tied to specific models or mileages. Avoiding a vehicle with known costly failure points can save significant sums long term.
• Choose vehicles with remaining manufacturer warranty. Cars that still carry some of the original warranty from the automaker often provide better protection and greater peace of mind than third-party warranties.
• Read contracts carefully. Make sure every fee and optional add-on is explained in writing. If the contract includes items you don’t want, ask for them to be removed before signing.
• Negotiate with data. Use comparable listings, market guides, and vehicle history to support your offers. Dealers expect negotiation, and informed buyers typically secure better deals.

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

Park notes that waiting for the calendar to change isn’t a guaranteed path to savings: “Waiting doesn’t necessarily lead to better outcomes.” Price movement depends more on supply dynamics than the date. As dealers clear space for new inventory, end-of-year promotions and improved pricing on certain vehicles can appear.

Ultimately, the best time to buy is when the price for the specific vehicle you want aligns with your budget and research. If a car fits your needs and the numbers make sense, acting confidently is often wiser than holding out for an uncertain future discount.