End-of-Year and Model Changeover Deals

Timing your car purchase can save you thousands. End-of-year sales and model changeovers create opportunities for significant discounts. This guide shows you when to buy and how to maximize savings.

Understanding the Car Sales Calendar

Monthly Sales Cycles

End of month (Last 3 days):

• Dealers push to meet monthly quotas
• Sales managers more flexible
• Better negotiating leverage
• Potential for additional discounts

Mid-month:

• Less pressure on dealers
• Fewer incentives
• Standard negotiating environment

Beginning of month:

• Fresh start, less urgency
• Dealers less motivated
• Harder to negotiate deep discounts

**Strategy:** Shop mid-month to research, buy end-of-month for best deals.

Quarterly Sales Cycles

End of quarter (March 31, June 30, Sept 30, Dec 31):

• Highest pressure to meet targets
• Manufacturer incentives often increase
• Dealers most motivated
• Best negotiating position

Mid-quarter:

• Moderate pressure
• Standard incentives
• Normal negotiating environment

**Strategy:** Target last week of quarter for maximum leverage.

Annual Sales Cycles

Best months to buy:

December (Best overall):

• End of year and quarter
• Dealers clearing inventory
• Manufacturer year-end incentives
• Holiday sales events
• Tax considerations for dealers
• Highest motivation to deal

September:

• End of quarter
• New model year arriving
• Dealers clearing old inventory
• Back-to-school promotions

May:

• Memorial Day sales
• Spring selling season
• Good manufacturer incentives

August:

• End of summer clearance
• New models arriving soon
• Labor Day sales approaching

Worst months to buy:

January-February:

• Post-holiday slowdown
• Tax refund season approaching
• Dealers less motivated
• Fewer incentives

April:

• Tax refund season (high demand)
• Spring buying season
• Less negotiating leverage

July:

• Mid-summer, mid-year
• Moderate demand
• Standard incentives

Model Year Changeovers

Understanding Model Years

When new models arrive:

• Most brands: August-October
• Some luxury brands: Earlier (June-August)
• Trucks/SUVs: Often earlier in year

Model year vs calendar year:

• 2025 models may arrive in late 2024
• Previous year models become "old" inventory
• Dealers motivated to clear old stock

Discount Timeline

When new models first arrive (Aug-Sept):

• Previous year models: 10-15% off MSRP
• Dealers want to clear inventory
• Manufacturer incentives increase
• Good time to buy outgoing model

Late fall (Oct-Nov):

• Previous year models: 15-20% off MSRP
• Inventory dwindling
• Deeper discounts on remaining units
• Selection becomes limited

End of year (Dec):

• Previous year models: 20-25% off MSRP
• Dealers desperate to clear
• Best discounts of the year
• Very limited selection

Example savings:

2024 Honda Accord EX-L (MSRP $32,000)

• September 2024: $29,000 (9% off)
• November 2024: $27,500 (14% off)
• December 2024: $25,500 (20% off)

Potential savings: $6,500

New vs Outgoing Models

Buying outgoing model:

Pros:

• Significant discounts (10-25% off)
• Proven reliability (known issues resolved)
• More negotiating leverage
• Better value per dollar

Cons:

• "Old" model year (affects resale)
• Missing latest updates
• Limited selection
• May lack newest features

Buying new model:

Pros:

• Latest features and technology
• Updated styling
• Better resale value
• Full selection available

Cons:

• Pay full MSRP or close to it
• Unknown reliability (first year issues)
• Less negotiating power
• Higher cost

Decision framework:

• Minor refresh: Buy outgoing model (save money)
• Major redesign: Consider new model (better features)
• Significant tech updates: May justify new model
• Cosmetic changes only: Definitely buy outgoing

Seasonal Sales Events

Major Sales Periods

Memorial Day (Late May)

• Three-day weekend sales event
• Spring clearance
• Good manufacturer incentives
• Competitive dealer promotions

Fourth of July (Early July)

• Mid-year clearance
• Patriotic-themed sales
• Decent incentives
• Summer selling season

Labor Day (Early September)

• End of summer clearance
• New models arriving
• Strong incentives on outgoing inventory
• Three-day weekend event

Black Friday (Late November)

• Holiday shopping season begins
• Year-end clearance starting
• Growing incentives
• Good deals on remaining inventory

Year-End Clearance (December)

• Best sales event of the year
• Maximum dealer motivation
• Highest manufacturer incentives
• End of quarter and year

Holiday Weekend Strategy

Before the holiday:

• Research vehicles and pricing
• Get pre-approved for financing
• Identify target vehicles
• Know what you're willing to pay

During the holiday:

• Visit multiple dealers
• Compare advertised specials
• Negotiate aggressively
• Use end-of-month timing (if applicable)

After the holiday:

• Follow up on quotes
• Leverage competing offers
• Close deal if price is right

Manufacturer Incentives

Types of Incentives

Cash rebates:

• Direct discount from manufacturer
• Reduces purchase price
• Stackable with dealer discounts
• Best for cash buyers

Low APR financing:

• 0-2.9% interest rates
• Saves money over loan term
• Usually can't combine with rebates
• Best for financed purchases

Lease specials:

• Reduced money factor
• Increased residual value
• Lower monthly payments
• Best for lessees

Loyalty bonuses:

• Discounts for current owners
• Typically $500-1,500
• Encourages brand loyalty
• Stackable with other incentives

Conquest bonuses:

• Discounts for switching brands
• Typically $500-1,000
• Competitive incentive
• May require proof of ownership

College graduate programs:

• Discounts for recent graduates
• Typically $400-1,000
• May include financing benefits
• Requires proof of graduation

Military discounts:

• Discounts for service members
• Typically $500-1,000
• Available year-round
• Requires military ID

When Incentives Peak

End of model year:

• Highest cash rebates
• Best financing offers
• Aggressive lease deals
• Maximum manufacturer support

Slow sales periods:

• Winter months (Jan-Feb)
• Increased incentives to drive traffic
• Targeted to specific models

New model launches:

• Incentives on outgoing models
• Minimal incentives on new models
• Clear inventory strategy

How to Find Incentives

Manufacturer websites:

• Official current offers
• Regional variations
• Eligibility requirements
• Expiration dates

Edmunds Incentives & Rebates:

• Comprehensive database
• Searchable by zip code
• Includes hidden incentives
• Updated regularly

TrueCar:

• Current incentives
• Regional offers
• Stacks with dealer discounts

Auto Deal Hunter:

• Automatically applies incentives
• Finds best combination
• Maximizes savings

Negotiating During Peak Times

Leverage Your Timing

What to say:

"I know you need to meet your month-end/quarter-end/year-end goals. I'm ready to buy today if we can agree on price."

Why it works:

• Acknowledges dealer's motivation
• Shows you're serious buyer
• Creates urgency
• Positions you for best deal

Stack Your Savings

Combine multiple discounts:

1. Dealer discount (negotiate off MSRP) 2. Manufacturer rebate (cash back) 3. Loyalty/conquest bonus (if eligible) 4. End-of-year clearance (additional dealer discount)

Example stacking:

• MSRP: $35,000
• Dealer discount: -$2,000
• Manufacturer rebate: -$2,500
• Loyalty bonus: -$1,000
• Year-end clearance: -$1,500
• **Final price: $28,000 (20% off MSRP)**

Use Competing Offers

Strategy:

1. Get quotes from multiple dealers 2. Visit during last days of month/quarter/year 3. Show competing offers 4. Ask each dealer to beat best price 5. Create bidding war

What to say:

"Dealer X offered $28,500 out-the-door. It's December 30th, and I know you want to close deals before year-end. Can you beat that price?"

What to Avoid

Common Pitfalls

Waiting too long:

• Inventory depletes
• Best units sell first
• Limited selection remains
• May miss out entirely

Focusing only on timing:

• Still need to negotiate
• Timing helps but isn't everything
• Research and preparation matter
• Don't overpay just because it's December

Buying wrong vehicle:

• Don't compromise on needs for discount
• Wrong vehicle is expensive long-term
• Ensure it meets your requirements
• Discount doesn't justify poor fit

Ignoring total cost:

• Focus on OTD price, not just discount
• Consider insurance, fuel, maintenance
• Long-term costs matter more than initial savings

Falling for "sales event" hype:

• Many "sales" are just marketing
• Compare actual prices, not advertised discounts
• Verify incentives are real
• Don't be pressured by artificial urgency

Best Vehicles for End-of-Year Deals

Highest Discounts

Slow-selling models:

• Sedans (declining popularity)
• Minivans (niche market)
• Less popular trims
• Unpopular colors

Overstocked inventory:

• Models with high production
• Dealers with excess inventory
• Regional overstock situations

Outgoing generations:

• Models being redesigned
• Last year before major update
• Dealers clearing for new version

Worst Deals

High-demand vehicles:

• Popular SUVs and trucks
• Limited production models
• New releases
• Vehicles with waitlists

Low inventory:

• Supply chain constraints
• Popular colors/trims
• High-demand segments

Your End-of-Year Strategy

Timeline

October-November:

• Research vehicles
• Get pre-approved for financing
• Identify target models
• Monitor inventory levels
• Track incentives

Early December:

• Get initial quotes
• Visit dealers for test drives
• Narrow down choices
• Establish baseline pricing

Late December (Dec 26-31):

• Execute purchase
• Negotiate aggressively
• Use end-of-year leverage
• Close deal

Negotiation Script

"I'm ready to buy today. It's [end of month/quarter/year], and I know you need to hit your targets. I have quotes from [X] other dealers. Here's what I'm willing to pay: [OTD price]. Can you make this deal happen?"

Why this works:

• Shows you're serious
• Acknowledges their motivation
• Provides specific target
• Creates urgency
• Gives them clear path to sale

The Easy Way: Let Spencer Time It Right

Timing your purchase and negotiating during peak periods takes research and effort. Auto Deal Hunter optimizes the process:

• **Spencer monitors incentives** and timing
• **Automatically applies** all available discounts
• **Negotiates with multiple dealers** during peak times
• **Maximizes savings** through strategic timing
• **No pressure** - buy when the deal is right

Start your OTD request today and let Spencer handle the timing strategy while you focus on choosing the right vehicle.

End-of-Year Checklist

Before buying during peak season:

• [ ] Researched target vehicles thoroughly
• [ ] Monitored inventory levels
• [ ] Tracked manufacturer incentives
• [ ] Got pre-approved for financing
• [ ] Identified best timing (end of month/quarter/year)
• [ ] Obtained quotes from multiple dealers
• [ ] Prepared to negotiate aggressively
• [ ] Ready to buy immediately if price is right
• [ ] Verified all incentives apply to you
• [ ] Calculated total OTD price including all discounts

With proper timing and negotiation, end-of-year and model changeover periods offer the best opportunities to save thousands on your car purchase.