When purchasing a car, new or used, timing can make a surprisingly big difference. Car prices fluctuate throughout the year - inflation, supply and demand, and even the great British weather can all have an impact on market conditions. Understanding when is the best time to buy a car can help you make significant savings and ensure you get the best deal possible. In this guide, we’ll explore everything you need to know about market trends, seasonal patterns, and other factors that influence car prices.
Is Now a Good Time to Buy a Used Car?
Deciding if now is the right time to buy a used car depends heavily on current market conditions. Recently, the level of used car sales have reached post-pandemic highs in the UK, which can lead to price increases as dealers contend with supply chain issues and high demand.
Inflation and interest rates can also impact used car affordability. When inflation is high, not only do car prices rise, but borrowing costs increase too, making financing a vehicle more expensive. Additionally, supply and demand plays an important role: during high-demand periods, such as the summer months, used car prices typically spike.
On the flip side, slower seasons like winter often offer opportunities for better deals. Buyers willing to shop during colder months may find dealerships more willing to negotiate to meet sales targets.
Read more about Used Car Finance and how it works.
Understanding seasonal patterns can help you make an informed decision on when is the best time to buy a car.
Winter (November - February): Car dealerships usually experience a drop in footfall during the winter months. Fewer buyers mean lower demand and prices may decrease as a result. The weather can deter shoppers, reducing competition for deals, making winter an ideal time to land a bargain.
Spring and Summer (March - August): The promise of warmer weather brings a surge in car buying. The holiday season sees families considering road trips, students looking for cars for new jobs or university, and dealerships experience increased foot traffic. As a result, prices tend to rise, and discounts are harder to find.
Best Months (September - October): These months are often overlooked but are great times to buy. Dealerships start clearing older inventory to make space for newer models, increasing the chances of finding clearance sales and promotional discounts.
Holidays periods like Christmas and Bank Holidays can also affect used car pricing. Dealerships often roll out special promotions and discount events to attract shoppers during these times.
Seasonal sale events like Black Friday have expanded beyond retail and into the automotive market, with dealerships offering discounts, incentives, and bonus packages to boost sales during otherwise quiet periods.
How Weather Affects Used Car Prices
Weather conditions can also impact used car prices. During bad weather (heavy snow, freezing temperatures, or storms), buyers are naturally less inclined to trudge round a cold, wet forecourt or test drive a car on icy roads. This presents an opportunity for more determined buyers as salespeople may be more flexible with negotiations.
In contrast, warm sunny months usually see higher footfall and, consequently, higher prices. Sports cars and convertibles, in particular, tend to peak during this period, while prices typically fall during winter months when demand (and the weather) cools off.
End of Financial Quarter Target Discounts
Dealerships are often incentivised towards quarterly sales targets (March, June, September, December). At these times, they’re highly motivated to close deals, often offering significant discounts, cashback incentives, and attractive finance offers on both new and used cars.
Savvy buyers should plan purchases toward the end of these quarters to take advantage of these sales pushes, potentially saving thousands.
The new car market operates slightly differently to the used car market. New car prices are set by manufacturers and are less susceptible to seasonal trends. However, supply chain disruptions have caused longer waiting times and stock shortages in recent years, affecting availability.
If a specific model is in high demand, waiting might not guarantee better pricing. However, some manufacturers offer incentives, including cash rebates and special financing offers, which can provide good value. Find out more about car finance options.
The Impact of New Number Plate Releases When Buying a Car
In the UK, March and September mark the release of new number plates, significantly impacting both new and used car markets.
When new plates arrive, many buyers rush to get the latest models, pushing dealerships to offer discounts on pre-registered or nearly new vehicles. As the demand for new models increases this can also lead to a dip in the value of older used cars - as customers buying new plates often exchange their old vehicles, increasing the supply of used vehicles.
In the months leading up to the plate change (January-February and July-August), buyers might see offers like free finance deposits and generous deposit contributions that can reduce the overall finance cost.
Like many industries, the automotive sector is undergoing changes to its traditional sales model. In recent years, there’s been a shift towards the agency model – particularly for new cars – where manufacturers set fixed prices and dealerships act more as agents, facilitating transactions rather than negotiating sales. However, some manufacturers are now delaying or even reversing their move to this model, suggesting a more flexible or hybrid approach may emerge as the industry continues to adapt.
Impact on Timing
With the agency model, flexible pricing may prove harder to come by. Prices remain largely fixed year-round, making timing less impactful. However, buyers may still benefit from clearer pricing and potentially faster delivery time
Final Thoughts
Knowing when is the best time to buy a car can make a significant difference to the price you pay. From seasonal dips to end-of-quarter dealership incentives and holiday promotions, timing your purchase strategically can unlock better deals and greater value. Whether you're eyeing up a used car during the quieter winter months or planning to capitalise on new plate releases and finance incentives, being informed puts you in the driver’s seat.
What time of year are used car prices the lowest?
Typically, winter months like December and January offer lower prices due to reduced demand, making them great months for used car deals.
When should I buy a new car to get the best deal?
The best time to buy a new car is usually at the end of a financial quarter (March, June, September, December) or during seasonal sales and promotional events like Black Friday.
Is it better to buy a used car or a new car now?
It depends. If you're looking for a better price and don't mind an older model, a used car may offer better value. If you want the latest technology, warranty coverage and peace of mind, a new car might be the way to go.
Can I get a car loan for a used car?
Yes, you can get a car loan for a used car. Learn more about your options on our Used Car Finance page.
Should I get a loan for a new or used car?
Both new and used cars can be financed. New cars often attract lower interest rates, but used cars can be a smarter financial choice due to lower purchase prices. Consider both the total loan amount and monthly payments before making a final decision.
Can I get a car loan if I'm buying during a holiday or special promotion?
Absolutely. Many lenders and dealerships offer special financing deals during promotions like Christmas or Black Friday, including lower APR rates and cash back incentives.
