Navigating the Best Car Pricing Strategies Over the Holiday Season

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Nothing screams "Christmas" like endless vehicle ads, decked out with humongous vehicle-sized bows on top. Although I've never personally received a car adorned with a giant bow as a gift (feel free to change that for me), it's a fact that this season is an excellent time for auto shopping. Many automakers offer discounts and financing deals on vehicles to quickly sell their inventory as the new model year rolls in. If you're in the market for a new or used car, this time of year can be a cost-effective option, provided you have a plan.

Time your purchase wisely

Target the end of December when salespeople rush to meet their monthly quotas and annual sales targets before the year ends. Christmas Eve and New Year's Eve are fantastic for finding the best deals. Clearance sales at the end of the model year also offer significant discounts—just ensure you're comfortable buying the previous year's model.

Conduct research at home

Before setting foot in the dealership, familiarize yourself with the following:

  • Your budget
  • Your decision to either lease or buy (Although you should probably buy, not lease.)
  • Your top choice (and two backup models)

Use websites like Edmunds or Kelley Blue Book to research market prices for vehicles. Determine the fair-market value of the make and model you're interested in.

Regarding payment, it's ideal to pay for a car in full and upfront, but that's not always possible. Instead, get pre-approved for an auto loan from your bank or credit union, then compare the offer to dealer financing. Your credit score influences your interest rate and approval chances. Before applying for a loan, check your credit score to know your standing. If it's low, here's how to improve it.

During the holiday season, consider year-end inventory from the previous year's models. As new 2024 models arrive, dealers will be eager to offload their unsold 2023 and even 2022 models, giving you bargaining power.

Arrive knowledgeable about deals

Keep an eye out for holiday-specific pricing bundles and reduced financing rates. Monitor sale highlights and fine print exclusions on manufacturer and dealer websites. Check if manufacturer financing or customer rebates are available for the cars you're considering. Remember that some holiday-related manufacturer incentives might be in place before the holiday weekend or even extend beyond it.

Be decisive

Use your research to make a purchase decision at the dealership. Mention any competing offers you've received as bargaining tools, even if they're not directly comparable. Unfortunately, the tactic of leaving without buying to negotiate later is no longer effective—by the time you return, your desired car will likely have been sold.

Be open to negotiating on less popular car colors and options, as dealers may be more motivated to sell those vehicles.

If you're trading in your existing vehicle, its age or mileage will influence its baseline value regardless of the time of year. However, you can leverage trade-in value when negotiating the purchase price of the new vehicle during peak sale promos. Mention applicable retail rebates and reference the salespeople's year-end volume goals when pushing for the best overall price. Understand which dealership fees you cannot waive.

The festive mood in the December air doesn’t have to hinder major purchases—with the right mindset, you can discover a great car deal this holiday season.

This holiday season, take advantage of the numerous 'auto' sales and 'holiday deals on cars'. Many automakers offer discounts on vehicles to quickly sell their inventory, making it a cost-effective time to purchase a new or used car. Furthermore, conducting research at home on websites like Edmunds or Kelley Blue Book can provide valuable information about market prices and financing options for 'travel' purposes.

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