When Is the Best Time to Buy a Used Car?

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Shopping for a used car tends to take longer than shopping for a new car. Much of the time and effort involves locating a model that is in good condition and has all the features you need. This is why when people ask us, "When is the best time to buy a used car?" The general advice we give is: "When your current vehicle is still in working order and you have the time to browse inventory." There's more to it than that — involving tariffs, market conditions and even specific months to avoid — which we'll discuss in this article. 

Note that we'll be focusing on the best time to buy a used car. Different factors determine the best time to buy a new car. Read "When Is the Best Time to Buy a Car?" for more information.

Jump to:
Best time to buy a used car
Are used car prices dropping? Yes and No.
What will be the best (and worst) time to buy a used car in 2025?
The X-factor affecting used car prices
When is the next best time to buy a used car?

Best time to buy a used car

According to Edmunds sales data, the best time of the year to buy a used car is in the months of October and November. As automakers seek to move inventory to make room for upcoming models, end-of-the-year promotions and financing deals, often entice used-car buyers into springing for a new vehicle instead, which then eases the demand for used vehicles and improves pricing for used-car buyers.

“Seasonal price reductions have been holding true,” noted Ivan Drury, director of insights for Edmunds. “Our data indicates that October and November are still the months when car buyers can expect to get the best discounts.”

However, there are other notable factors this year that shoppers should also consider when purchasing a used car in today’s market. Read on for additional insight that will help make every dollar count.

Are used car prices dropping? Yes and No.

In 2024, the global supply chain continued to recover from the pandemic shortages, the new car market became more attractive to potential buyers than the one they faced a few years prior. As those new car shoppers traded in their vehicles, used car inventories began to improve and drove down prices. It was a step in the right direction but used-car shoppers aren't out of the woods just yet.

“Pre-pandemic, you could have expected to see an average price drop of 8.1% from January to December for a 3-year-old vehicle,” Drury told us. “But so far, 2022-2024 is averaging 6%.”

Edmunds data brought to light another delayed side effect of the pandemic car market. Since 2022 was one of the lowest new-car sales years in recent memory, it has translated to an estimated 50% fewer lease returns compared to six years ago, when the market was relatively normal. With fewer 3-year-old used cars (which are considered the most desirable) hitting the market, pricing is expected to increase. In fact, the average pricing for 3-year-old used cars rose 3.3% year over year in the fourth quarter of 2024. This limited inventory means you're not likely to see used car prices drop much in the coming year.

What will be the best (and worst) time to buy a used car in 2025?

The Fed cut interest rates a few times in 2024 and kept rates stable at the beginning of 2025. This should have a positive impact on new vehicle sales due to potentially lower borrowing costs, reduced monthly payments, and increased consumer confidence. However, if we look at seasonal trends, the early part of the year tends to be an unfavorable time to buy a used vehicle.

“January is the height of used car values,” Drury said. “We often see a dip in February, but then March and April tend to get a slight lift with tax season.”

As we've noted, used car inventory will be limited in 2025. Many car shoppers have opted to delay their purchase in search of better new-vehicle inventory and lower prices, and as such, the average age of trade-in vehicles has started to tick up. All this means that not only will there be fewer used vehicles to choose from, but you may also encounter older and higher-mileage models at higher prices.

Assuming seasonal trends remain the same in 2025, the best time to buy a used car will continue to be in October and November.

The X-factor affecting used car prices

Drury added that the policy changes proposed by the Trump administration could also trigger a new period of market instability. If tariffs come into effect on a large scale and increase new car prices, they could cause a greater demand for used cars and increase prices as customers flock toward used vehicles as a less expensive option.

“Without any tariffs, I would expect to see a bit more normalcy in the used market going forward," said Drury.

When is the next best time to buy a used car?

We've established that mid-to-late fall is the best time to buy a used car, but not everyone can neatly fit that into their life. Things happen, and you may need a new car in February. Are you going to wait eight months to buy one? Timing is everything, and when it comes to buying a used car, it can be the difference between getting a vehicle that you love and one that merely gets the job done. And much of that comes down to how prepared you are when you start the car-buying process. Given that your selection may be limited this year, start browsing Edmunds used car listings now. If you see something you like, it may be best to move quickly on it.

Avoid waiting to buy your next used car until your current vehicle is hanging on by a thread or totally busted. Doing so can add an element of urgency to the buying process that tends to favor the seller — it’s challenging to be patient and objective about a vehicle you’re considering if you’re in a tight spot and desperate to replace your current one.

Taking a preemptive approach can head off much of the stress of buying a used car. If your current ride is starting to show its age or you anticipate that your car needs will change in the foreseeable future, start researching the models and features that you’re interested in, get a sense of pricing by checking out local dealerships and online ads, and set a budget now. This approach will not only give you a more informed perspective during the buying process but also allow you to be more selective about the time of year that you’re in the market.