When is the best time to buy a car?

The best time to buy a car isn’t necessarily based on seasonal trends, tax credits, or shifts in customer behavior. No, according to Wells Fargo’s auto experts, the best time to buy a car is before it becomes urgent.

That’s because so much of the process comes down to personal preferences and doing the necessary research prior to negotiating with dealers.

“It’s just a reality that buying when you absolutely have to can limit your ability to get a good deal,” said Robert Lyles, Retail Auto relationship management director, East Market for Wells Fargo Auto. “Doing your research, knowing what you’re looking for, and understanding how much you can afford will give you a leg up when it’s time to negotiate.”

So how do you know when you’re ready? Let’s break down the factors — and steps — that can help you decide the best time to make your move.

• Interest rate: Confirm the annual percentage rate (APR) of your loan. Determine whether the loan has a fixed rate, where the monthly payments and rate remain the same, or an adjustable rate, where monthly payments and rates can change. Your interest rate and monthly payments will depend on several factors, including your credit score, income, and vehicle preference. Interest rates on new vehicles are often lower than rates for used vehicles.
• Total amount financed: Be sure the amount on your loan documents is the same as what you asked for. Consider local taxes when determining the total dollar amount to be financed. Check your county and state website for more information on local taxes.
• Monthly payment amount: Make sure your monthly payments can be maintained within your budget.
• Prepayment penalties: Find out if you can pay off your loan early without incurring a penalty. If you can’t, find out the cost of early repayment.
• Aftermarket products and services: Insurance products and services may be purchased with the car. Consider whether you need these items, and if not, ask that they be removed from the loan.
• Length of your loan: Car loans generally range from 36 to 72 months. Now many banks are offering 84-month loans. Longer terms can lower your monthly payments but could cost you more over the life of the loan.

Use an online payment calculator to help understand how much you can afford.

A September 2024 Edmunds report said car shoppers are facing historically harsh purchasing conditions. Not much has changed year over year, as Kelley Blue Book reported average transaction prices (ATPs) were 1.5% higher in July 2025 than July 2024.

“New car prices are at some of their highest levels in the last decade,” said Meganck. “The industry typically wasn’t doing 84-month financing, but it’s just a reality of where things are now. The advice used to be ‘keep your term as short as possible so you don’t have negative equity in your vehicle,’ but that’s hard for most people right now because of the prices.”

“If you’re a person who does not keep your vehicles for an extended period of time, you might want to consider leasing for vehicles that would normally be outside of your budget,” Lyles said. “Understand what’s happening with the new car market and how that ties into the monthly budget you’ve already created.”

To help you stay within your budget:

• Explore promotions and manufacturer incentives: Ask about current and future promotions and offers that may lower the price of the vehicle you’re interested in.
• Make sure you fully understand the offer: Check the details and the fine print before committing to anything. Pay close attention to what is included in your loan and ask questions if you are unclear when finance personnel at the dealership review the contract with you at time of closing.
• Know your credit score: Your credit score matters because it may impact your interest rate, term, and credit limit. The higher your credit score, the more you may be able to borrow and the lower the interest rate you could receive.

Buying cars today is much different than it was 10, or even five, years ago. Artificial intelligence (AI), coupled with consumers who are more informed than ever, has limited the amount of negotiating and haggling that typically takes place at car dealerships across the country.

“Dealer research indicates the average consumer visits 11 websites to gain more information on a vehicle they’re interested in,” Lyles said. “It’s not surprising to get customers at the dealership who are as up to speed on the features, options, and technologies in vehicles as the people selling them.”

In turn, many dealerships have access to proprietary AI tools that automatically adjust their vehicle pricing based on market conditions.

“When you head to the dealership, the hard work should be done,” said Lyles. “You should know what kind of features and equipment you need. That helps you land on other things like the size of the engine you need, towing capacity, and infotainment options.”

• Give yourself time to evaluate your options: Spend time at the dealership examining the vehicles you are interested in that are within your budget. Consider all available options, and try to avoid making a quick decision.
• Test drive the vehicles you’re interested in: If possible, drive the vehicle in different environments to see how it performs and whether you feel comfortable behind the wheel.
• Use services like Carfax to examine the vehicle’s history: If you’re purchasing a previously owned vehicle, find the car’s service records, number of previous owners, and whether it has been in an accident.
• Research warranties: Manufacturers offer standard warranties for a set amount of time that are transferable, and buyers should consider vehicle reliability and average repair costs in order to determine if an extended warranty is beneficial or to ensure that you aren’t paying for overlapping coverage.
• Be informed about deals: Before heading to the lot, find out the best car deals and available incentives.

The old rules of car buying — like running to dealerships at month’s end — are fading fast. Because of AI tools and shifting market dynamics, timing purchases around seasonal trends and regional insights is better than conventional wisdom.

“Month-end rushes still exist; however, it’s a myth that once was truth,” said Lyles, “but with the internet and digital advertising having a global reach, every day is month-end.”

Still, there are seasonal strategies available that can help you save on a vehicle.

Spring

• Used cars: Avoid, if possible — tax refunds often drive-up demand and prices. “It’s a tougher market for buyers based on the higher demand,” said Lyles.

Summer

• 4×4 vehicles: Demand dips during warmer months, and the prices often follow suit.¹
• Look at buying during holidays: Dealers are often slow during these times (Memorial Day, July 4, Labor Day) as people are traveling and/or spending time with loved ones, so dealers and manufacturers often offer discounts or special APRs to inspire sales activities.

Fall

• New model clear-outs: This is a great time to snag deals on outgoing models. “For the most part, vehicle manufacturers know how many units they’re going to produce in the upcoming year,” Meganck said. “By December, the vehicle manufacturers will need to start clearing the previous year’s models, which means there’s likely going to be some really good deals available.”
• Black Friday: With new models dominating promotions, dealers often use the day after Thanksgiving to move used cars off the lot.

Winter

• Raise the roof: Buying cars like convertibles in colder seasons due to low demand could save you money.
• Dealership prep: Dealers stock up on used inventory in winter to meet spring demand.

“Do your research, understand what you can afford, pre-plan options, and you have a great chance of having a pleasant car-buying experience,” Meganck said.