January is the most underrated month of the year for car buying. Cold weather, holiday spending strain, and a perception that December is the end-all for car buying all tend to keep shoppers at home. However, a strategic approach can help you score limited-time deals in January, as market conditions now heavily favor informed buyers. For example, an iSeeCars study shows that the industry-wide average for leftover 2025 model-year inventory is a whopping 21%, making these cars among the most negotiable today. 

Leftover 2025 Models Are a Basis for Negotiation Power

Excess vehicle inventory places pressure on dealerships to make room for 2026 models and manage floor planning, which allows for inventory financing. Dealerships ultimately pay off the vehicles they acquire on credit following sales. With cash flow and sales projections requiring a delicate balance, many dealerships need floorplanning. Automaker dealer bonuses for volume targets compound this January sales motivation.

To clear stock, dealerships commonly offer incentives like low-interest financing, steep cash rebates, and lease deals. 

High-inventory segments are especially prime for January incentives. These segments commonly include compact and subcompact cars/SUVs, luxury SUVs, electric vehicles, and full-size trucks. Among these segments, unsold 2025 models will remain the most negotiable. As we’ve seen in January, these cars will also be subject to the steepest discounts and financing incentives.

Where exactly can we expect to find the most negotiable cars right now? Here’s a look at the brands with the most remaining 2025 inventory today:

Data source: CarEdge.com

See unsold 2025 cars and trucks near you

Don’t Count Out Big-Name Brands

Since dealerships need a reason to offer savings, such as leftover inventory, deals for higher-selling brands tend to be less prevalent. However, big-name automakers such as Ford, Mazda, and Nissan still have plenty of leftover 2025 inventory to move.

In late January, nearly half of all Ford inventory is leftover 2025 models. Jeep is close at 41%, followed by Mazda at 38% of inventory. Despite making headlines last year over financial woes, Nissan is doing slightly better with ‘just’ 28% of inventory being leftover 2025 models.

Make the Most of Late January Deals

Despite January representing a prime opportunity for car-buying deals, the best incentives won’t come to you. To attain negotiation leverage, you’ll need to prepare beyond checking a single automaker’s website for incentives. Key steps include researching fair market values with CarEdge, comparing prices and incentives across nearby dealerships, and using CarEdge’s out-the-door pricing calculator before setting foot on a car lot. 

Understanding data like out-the-door pricing helps you prioritize the total cost over monthly payments, helping you avoid value traps like hidden fees and longer loan terms. 

Similarly, arranging financing before car shopping puts the ball in the dealership’s court to beat your rate or match the car’s price. You’ll need a credit check across multiple lenders for pre-approved financing, but completing this within a 14-day window minimizes credit score impact.

Key Update on Tariff Uncertainty Surrounding European Luxury Cars for January

January is an especially significant buying window for drivers considering European luxury brands, primarily luxury ones, such as: 

• BMW
• Mercedes-Benz
• Land Rover
• Volkswagen Group (VW, Audi, Porsche)

With ongoing tariff uncertainty under President Trump surrounding Greenland, European luxury brands may raise prices to offset potentially higher U.S. export costs. However, President Trump stated that he had formed the “framework of a future deal” on Greenland, with new tariffs no longer needed on opposing European nations, according to CNN.

Handle January Car Buying Like a Pro With CarEdge

While the January buying window for attractive limited-time incentives is narrowing, you should avoid rushing into a purchase without preparation. Focusing on 2025 models gives you the best odds of attaining maximum savings, and brands with consistently tight inventories, such as Honda, remain an option. 
Simplify your ability to score January deals with CarEdge’s free car buying cheat sheets, which teach negotiation strategies when dealerships won’t budge, dealership industry terms to keep you ahead of the curve, and much more.