If you’re considering buying a car, the end of the year is one of the best times to make a purchase. Many dealerships offer year-end sales, holiday discounts, and special financing options, making it an ideal time to get a great deal on a used or Buy Here Pay Here (BHPH) vehicle.
This guide explains why buying a car before the end of the year can help you save money and secure better financing terms.
1. Year-End Discounts and Dealer Incentives
Dealerships want to clear out inventory before the new year, which means they’re more likely to offer:
- Discounted pricing on used cars to make room for new models.
- More flexible negotiations as sales teams push to meet annual quotas.
- Lower interest rates or special financing deals from certain lenders.
How to Take Advantage:
- Shop during December’s final two weeks when sales teams are trying to hit goals.
- Compare multiple dealerships for the best pricing.
- Ask about additional incentives, such as free warranties or maintenance plans.
2. More Trade-In Value for Your Current Car
Trade-in values fluctuate throughout the year, but dealerships often offer more at year-end to secure more sales.
- High dealership demand means you might get a better trade-in offer.
- You can use the trade-in toward your down payment, reducing loan costs.
- Online trade-in tools (Carvana, CarMax, KBB) help compare offers before visiting a dealership.
Pro Tip: Get multiple trade-in quotes before negotiating with a dealership.
3. Buy Here Pay Here Deals Are More Flexible
Many Buy Here Pay Here (BHPH) dealerships run holiday promotions on:
- Lower down payments for qualified buyers.
- Deferred first payments (start paying in January instead of December).
- Extended warranties or service packages included with financing.
BHPH lots approve buyers with low or no credit, and the year-end push means better opportunities to negotiate.
4. Lower Competition and Better Inventory Selection
Most car buyers focus on holiday shopping, so there’s less demand for vehicles in December.
- Less competition means you have more negotiating power.
- You’re more likely to get the car you want before inventory shifts in the new year.
- Some dealerships extend sales into early January, but selection may be limited.
5. Tax Benefits for Business Owners
If you’re a small business owner, purchasing a car before December 31 could allow you to:
- Deduct part of the vehicle cost on your business taxes.
- Write off depreciation under IRS Section 179 (check with a tax professional).
Pro Tip: Keep all receipts and financing records for potential tax deductions.
6. Lock in Lower Interest Rates Before the New Year
Auto loan rates fluctuate, and some lenders may increase interest rates in the new year.
- Securing financing before January 1 can help lock in lower rates.
- If your credit is improving, consider applying before potential lender policy changes.
Final Thoughts
Buying a car before the end of the year can help you save money, secure better financing, and take advantage of trade-in incentives. Whether you choose a traditional lender or Buy Here Pay Here financing, shopping in December can be one of the best financial moves you make.
If you’re looking for a great deal on a quality used car before the year ends, check out our Buy Here Pay Here dealership options today.
They were very receptive and cordial, and took care of us right away!
They matched us with a great vehicle that was a perfect fit for what we needed.
Extremely knowledgeable and well trained at their professions.
To be considered, two very valuable employees.
Highly suggest, 10/10!!
