Know When to Shop for End-of-Model-Year Discounts

If you’re looking to save money on a new car, timing your purchase to coincide with dealership inventory turnover can help you secure a better deal. Most dealerships begin clearing out old models to make room for new inventory well before the new calendar year begins.

Automaker production schedules and dealership sales targets drive this shift in inventory. Knowing when these changes typically occur can help buyers take advantage of price reductions, bonus cash, and dealer incentives tied to older stock.

Why Dealerships Need to Clear Out Inventory

Dealerships have limited space on their lots and showroom floors. When new model year vehicles are scheduled for delivery, older inventory must be sold to make room for them. Keeping unsold stock for too long can result in significant financial losses for dealers, including interest, storage, and depreciation costs.

Clearing out inventory quickly also helps dealers meet sales goals and qualify for manufacturer bonuses. That’s why they often offer aggressive discounts or special promotions during these clearance periods.

When New Models Typically Arrive

New model year vehicles typically arrive at dealerships between late summer and early fall, often starting as early as August. For example, a 2025 model may begin appearing on lots in the second half of 2024.

This means that July through October is a common window for dealerships to focus on selling down their current-year stock. During this time, you’ll find manufacturers and dealers offering incentives to move inventory before new models take over space.

End-of-Model-Year Sales Events

Car buyers often associate big savings with year-end events, but the push to clear out current models typically begins well before December. Here are common periods when dealerships ramp up clearance efforts:

• Late summer (July and August): Start of manufacturer incentives for the current model year
• Labor Day weekend: Major nationwide sales events across many brands
• Early fall (September and October): Last chance discounts as new models arrive in volume
• End of the calendar year: Leftover inventory and demo models are often marked down further

If you’re flexible about features or trim options, shopping during these times can help you find significant markdowns on last year’s models.

Which Vehicles Get Marked Down First

Dealerships typically begin clearing out vehicles that are overstocked, less popular, or have been sitting on the lot the longest. Models with new redesigns coming soon are also more likely to be discounted, as buyers may be holding out for the updated version.

That means compact sedans, entry-level trims, or last year’s version of a model being refreshed may be among the first to be discounted. High-demand vehicles or newly introduced models are often excluded from early clearance offers.

Pros and Cons of Buying at Clearance Time

End-of-model-year sales can offer some of the lowest prices of the year, but there are tradeoffs. You may have fewer options for colors, trims, or packages since selection is limited to what remains in stock. Financing incentives may also vary depending on credit qualifications and manufacturer partnerships.

Still, for many buyers, the cost savings outweigh the lack of customization. If you find a vehicle that fits your needs, clearance sales can be an excellent opportunity to stretch your budget.

How to Know When a Dealer Is Clearing Inventory

Even if a dealership doesn’t advertise a specific sale, there are signs that they’re in clearance mode:

• Discounted pricing is prominently listed on current-year models
• Promotions highlighting end-of-summer or fall savings
• Salespeople eager to move older stock or demo vehicles
• Financing or cash-back offers on specific VINs or trims

You can also ask the dealer directly if they have manufacturer targets to meet or if incoming shipments are creating urgency to sell what’s already on the lot.

How to Prepare Before You Shop

Inventory changes fast during clearance season, so it pays to be prepared. Narrow your search to a few models and be flexible on color and features. Get pre-approved for financing if possible, and check with multiple dealerships to compare pricing.

Additionally, be aware that manufacturers may offer loyalty bonuses or conquest cash to encourage brand switching. Taking advantage of these additional offers can help you further boost your savings.

• When Inventory Clearance Makes the Most Sense
• Match Your Timing to Your Budget

Buying at the end of a model year is often a smart move if you’re focused on value over having the latest release. Dealerships are motivated to sell, prices are more negotiable, and you may be eligible for additional incentives. While you might not get your first choice in every feature or color, the price difference can make up for it. If you’re timing your purchase around major sales events, late summer through early winter offers the most consistent opportunity to save.