Buying a used car during Memorial Day is the best time of year to get a great deal.

• According to a new analysis by iSeeCars, buying a used car during New Year's Eve and New Year's Day is the best time of year, with deals up 47.9%.
• According to Karl Brauer, executive analyst at iSeeCars, selling cars is easier for dealers in warmer months and more challenging in colder months.

The best time to buy a used car is almost here.

According to a new analysis by iSeeCars, New Year's Eve and New Year's Day are the best days of the year to buy a used car, with 47.9% more deals than average. The site analyzed 39 million used car sales from 2023 and 2024 to determine the best and worst times of the year to buy a used car.

According to Karl Brauer, executive analyst at iSeeCars, those dates were chosen because "two forces are coming together."

As the winter season approaches, dealers are working to increase transactions in order to meet their sales targets for the year.

According to Brauer, selling cars is easier in warmer months and more challenging in colder months.

To counter the decline in dealership foot traffic during colder temperatures, he suggested providing better deals.

According to iSeeCars, the months with the highest number of used car deals are January, December, February, November, and March.

Some credit card APRs are not decreasing, while others are increasing.

The surge in demand for used cars during the pandemic has made it difficult to find an affordable option.

The typical asking price is stabilizing as more sellers add incentives, despite a 31.4% increase in prices from $20,683 in the third quarter of 2019, according to Edmunds data.

The increasing number of new cars and the availability of incentives is "trickling down" to the used car market, according to Ivan Drury, director of Insights at Edmunds.

The car shopping site found that in the third quarter of 2024, the average used vehicle price dropped to $27,177, which was a 6.2% decrease from the previous year's average price of $28,960.

Experts advise that if you're in the market for a used car, you need to know certain things.

The best and worst times to buy a used car

Car companies and dealers are striving to achieve sales targets before the end of December, according to Brauer.

To achieve the target figures, sellers will offer special deals on New Year's Eve, he stated.

If you can't purchase a car in the next three weeks due to other tasks and celebrations, mark Martin Luther King Jr. Day on your calendar, which falls on Jan. 20 in 2025. This holiday is the second-best time of year to buy a used car, with 43.3% more deals than usual, according to iSeeCars.

As the temperature rises, car sellers are starting to benefit from market conditions that favor them. However, there are fewer deals available during key annual holidays.

On average, Mother's Day sees 27.4% fewer deals than usual, followed by Memorial Day with 28%. Juneteenth and Fourth of July also have lower deal volumes, with 30% and 31.1% fewer deals respectively. However, Father's Day is the worst day to buy a used car, with 33.1% fewer deals than average.

'Now there are deals out there'

Now, there are numerous deals available for used cars, including low interest rate financing offers and very low sticker prices, according to Brauer.

Before buying a used car, experts recommend crossing off three items from your to-do list.

1. Research for sales, discounts and offers

Drury stated that while deals exist, they are not uniformly available.

The search for deals can vary greatly depending on the make, model, and segment, as stated.

Conducting research on car prices in your area by visiting various dealerships can aid in negotiating better deals, particularly during the year-end sales period.

Brauer stated that you want to make them work for your business by potentially beating other dealers.

2. Ask for the car's VIN and request an inspection

A vehicle identification number (VIN) reveals information about a car's past, including the number of owners, service history, and whether it has been involved in accidents or sustained flood damage.

It is recommended to obtain a vehicle history report prior to purchasing a car, as advised by Brauer.

He advised getting a pre-purchase inspection, or PPI, from an independent mechanic before making a purchase.

"That should be a clear indication that the seller won't allow it," he stated.

3. Seek financing options

Experts advise getting pre-approved for various car loans and financing options from banks and other lending institutions prior to visiting dealerships to have a better understanding of the terms you qualify for.

If the dealer does not match the offer or provide a better deal, you can opt for financing from your bank or another lender.