Used Car Prices Dropping Between the Months of November to February

If you’ve been thinking about selling your used car but have been procrastinating, it’s time to look at the facts. Whether you are holding off on the sale for sentimental reasons or simply because you don’t know when the right time to sell is, you need to seriously reconsider. Now is the perfect time to sell.

Like any market, there are high points and there are low points for sales. For the world of used car, it follows a certain science. A vehicle is priced depending on sales volume, buying habits, events and seasonality within a specific area.

Take for instance in Canada, used car prices start dropping between the months of November all the way to February the following year. Typically, car sales during this time of the year increase due to release of Christmas bonuses or tax returns. The competition for car sellers becomes cutthroat, which leads them to drop prices to entice more buyers.

For car dealers in this area, price drops are also ideal to help them clear out inventory as the year comes to a close. Car salesmen also have better incentives to sell your car as they are often rewarded with year-end bonuses when they get more cars out that door.

On average, dealers drop prices at least once a month to as much as 3 times a month. Price drops range anywhere from 4.2% to 5.5% of the original selling rate.

Consumers are in luck as purchases that amount to an average price of $20,000 can save as much as $800 if they buy within the holiday season. Although a luxury purchase, most consumers are made aware of this advantage and heavily consider buying a used car now more than ever. Even if they are hesitant to spend on a big item, having on-hand cash can give weight to that purchase decision.

On the other hand, car sellers get the raw end of the deal receiving less profit from their car sales if they wait until November to start selling. If you are looking for a quick sale, the holiday season is a great time to get rid of your car — that is if you are comfortable with a considerably smaller payout for your vehicle. Otherwise, it will be wiser to sell it before November hits or wait until mid-February when car dealers rapidly correct their prices.