855.587.2886 help@caredge.com
Ray Shefska pointing

Find the perfect car for you!

Select a car to get started.

Year-End Car Deals Will Be Huge in 2023. Here’s Why.

Last updated Dec 5, 2023

2023 is shaping up to be an exceptional year for year-end car deals. A perfect storm of high inventory, soaring interest rates, and holiday sales is coming together to bring big discounts. Here’s why savvy car shoppers should keep take 2023’s year-end car deals seriously.

👉 Just want to see the deals? See December’s best new car incentives here.

1. Rising Interest Rates and Increased Floorplanning Costs

auto loan interest rates in 2023

One of the most compelling reasons to expect significant year-end car deals in 2023 is the steady rise in interest rates throughout the year. The average new car loan APR is now 9%, with used car loans averaging around 14%.

As the cost of borrowing money increases, automakers and dealerships will be motivated to lure buyers with more attractive financing options. Simultaneously, rising rates mean higher dealership floorplanning costs, which put additional pressure on dealers to move inventory. With rates on the climb, it’s an opportune moment for buyers to lock in a low-interest loan before they potentially rise even further.

👉 These are the best auto financing offers in December. 

2. High New Car Inventory

Jeep year-end car deals

The auto industry has seen an influx of new car inventory in 2023. Factors like supply chain improvements, slower sales, and high MSRPs have contributed to a surplus of vehicles waiting for buyers. Dealerships are eager to clear out these excess stocks by year-end to make room for the next year’s models. This means potential discounts, rebates, and promotions that can significantly reduce the purchase price.

👉 See the most recent new car inventory update here.

3. Slow Sales Earlier in the Year

new car inventory numbers 2023

Sluggish car sales in the earlier part of the year have left many dealerships with excess inventory. In an effort to meet annual sales targets and improve cash flow, dealerships often resort to offering generous discounts and incentives in the final months of the year. For buyers, this translates into an excellent opportunity to snag a deal on the vehicle they desire.

4. Black Friday and Holiday Season

CarEdge black friday savings

Some things never change. Every year, the holiday season is when car dealerships roll out their best deals. Automakers and dealerships understand that consumers are ready to spend during this time, and they respond with enticing promotions, discounts, and special offers. After decades of holiday sales, consumers have come to expect big discounts in December, and often wait all year for year-end car deals.

5. New Year’s Inventory Clear-Out

year end car deals 2023

As the year comes to a close, automakers and dealerships are eager to clear out remaining inventory to make way for the arrival of new models. This urgency often translates into even more competitive pricing and incentives as they aim to finish the year on a strong note.

👉 December’s big year-end sales are out now! Here’s the best of the best.

December Is THE Time to Buy

In summary, 2023’s year-end car deals are the best sales we’ve seen all year due to a combination of rising interest rates, high new car inventory, holiday promotions, and the need to clear out existing stock. Car buyers who are patient and strategic in their approach can capitalize on these factors to secure a fantastic deal on their next vehicle.

Car buying cheat sheet

Ready to outsmart the dealerships? Download your 100% free car buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!


The CarEdge team is here to help! Learn more about how our team of consumer advocates is changing car buying for the better.

COVERAGE YOU CAN TRUST

CarEdge Extended Warranty

Peace of mind without the markup.
Flexible terms & pricing.
Coverage details

 

Email newsletter

Get instant access to members-only resources.

We'll email you updates
Or, we can text you
Hidden
Subscribe to receive:

Best Seller

Do it yourself

CarEdge Data

$9.99 monthly subscription

Unlock now
Pay a fair price with insights and data to make informed car buying & selling decisions.
Market Insights

CarEdge Fair Price

10 CarEdge Reports monthly

20% off additional reports

Black Book Valuations

Learn More

Help as you need it

CarEdge Consult

Sold out

Schedule now
Connect with an industry expert at your convenience.

Personalized 1:1 guidance via video or phone call
Expert help in selecting a vehicle and negotiating the fair price
Assistance with trade-in, financing, leasing, insurance, and warranties
Empowering you to make informed decisions effortlessly

Learn More

We do it with you

CarEdge Coach

$99 monthly subscription

Buy now
Get guidance and maximize your savings with an industry expert in your pocket.
Car Coach Live Chat

Discounted consult calls

Deal School

CarEdge Fair Price

Market Insights

9 CarEdge Reports monthly

20% off additional reports

Black Book Valuations

Learn More

Auto insights. Right in your inbox.

We'll email you updates
Or, we can text you
Hidden
Subscribe to receive:

Get the latest trends and money-saving strategies, once a week.

We'll email you updates
Or, we can text you
Hidden
Subscribe to receive:

Related articles

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Share This