Did you know that more than 3.5 million cars remain unsold in the United States annually? While this may sound like a challenge for dealerships, it presents a unique opportunity for you to get a great deal on a new vehicle. Read on to find out how.

End-of-Year Sales

Car dealerships often slash prices at the end of the year to clear space for next year’s models. During this period, manufacturers may give dealerships additional financial incentives, which are passed on to the buyer. Dealerships may offer lower interest rates, free extended warranties, or complimentary service packages.

Buying Last Year’s Model

A vehicle from the previous model year, even if brand new and never driven, depreciates as soon as the new model year is introduced. The older cars may not have the same specifications as the latest model, but they will save you thousands of dollars.

Seasonal Promotions

Dealerships offer special discounts during holidays like President’s Day, Memorial Day, and Labor Day. These promotions include rebates, bonus cash offers, or dealership financing with low or zero interest rates. Dealers use these holidays to clear slow-moving stock and hit sales goals, so you’ll likely find deeper discounts.

Manufacturer Incentives

Manufacturers occasionally provide direct-to-dealer incentives to help move unsold vehicles off the lot. Though these deals are often not made public, researching manufacturers’ offers can help you take advantage of them. Incentives like rebates, lease deals, or low-interest financing translate to a better deal for the buyer.

Bulk Purchase Discounts

A dealership facing significant overstock may be willing to offer a bulk discount to buyers looking to purchase multiple vehicles. Fleet buyers or businesses purchasing several cars for corporate use can exploit this opportunity. Individual buyers can also negotiate a lower price on a group of vehicles.

Leverage Dealer Quotas

Dealerships often have strict monthly or quarterly sales quotas that they must meet to earn bonuses or avoid penalties. Towards the end of every month or quarter, dealerships are more motivated to move inventory, including unsold cars. They may offer more competitive pricing to close a sale.

Demo Cars

Demo cars are vehicles that dealerships use for test drives or showroom displays. They typically have low mileage but cannot be sold as new, which means dealerships offer significant discounts to sell them. Interestingly, demo cars are often in excellent condition and still have full factory warranties.

Dealer Buybacks

When a customer returns a vehicle soon after purchase, typically under a satisfaction guarantee, the dealership often sells it as a “dealer buyback.” Though these cars are technically used, they usually have less than a few hundred miles on them and may still qualify for new car incentives.

Fleet Sales

Rental companies and businesses regularly update their fleet vehicles, selling off well-maintained, low-mileage cars that are only a year or two old. You can buy these vehicles at a lower cost than new cars, and while they are technically used, they may still be under warranty.

Check for Overstocks

Sometimes, dealerships order more of a specific model or trim level than the market demands. For example, a dealership may have many cars in a particular color or with specific features that aren’t popular with buyers. You can score a deal by asking about overstock inventory.

Buy at Auto Auctions

Auto auctions, including public and dealer-only, allow you to purchase unsold or off-lease vehicles at below-market prices. Although auctions are more common for used cars, some unsold new vehicles also make their way to auction blocks. With proper inspection, you can get the best offers there.

Online Car Shopping Platforms

Platforms like Carvana, Vroom, and TrueCar have revolutionized how people buy cars. They often list unsold or overstocked vehicles at lower prices because they eliminate the costs of running a physical dealership. You can compare the prices of several vehicles or unsold cars.

End-of-Day Negotiations

Salespeople approaching the end of their shift may be more willing to close a deal quickly, even at a discount. You can take advantage of this urgency by visiting a dealership late in the day, especially on a slow sales day.

Credit Union Car Sales

Some credit unions host special car sales events in partnership with local dealerships, offering their members exclusive discounts on unsold inventory. Cars sold at these events offer lower financing rates and better deals than those available through regular dealerships.

Private Dealership Liquidations

Smaller, independent dealerships going out of business or liquidating their stock offer significant discounts to clear out inventory. While you can get good deals from these businesses, you must be cautious and thoroughly inspect the vehicle and verify warranties.