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Plan your next car purchase like a pro

·Sherrell McMillan for Wells Fargo

Two female friends happily riding on a highway in their convertible car. — Monkey Business Images // Shutterstock
Two female friends happily riding on a highway in their convertible car. — Monkey Business Images // Shutterstock

Plan your next car purchase like a pro 

The best time to buy a car isn’t necessarily based on seasonal trends, tax credits, or shifts in customer behavior. No, according to auto experts, the best time to buy a car is before it becomes urgent.

That’s because so much of the process comes down to personal preferences and doing the necessary research prior to negotiating with dealers.

“It’s just a reality that buying when you absolutely have to can limit your ability to get a good deal,” said Robert Lyles, Retail Auto relationship management director, East Market, for Wells Fargo Auto. “Doing your research, knowing what you’re looking for, and understanding how much you can afford will give you a leg up when it’s time to negotiate.”

So how do you know when you’re ready? breaks down the factors — and steps — that can help you decide the best time to make your move.

Key takeaways

  • The best time to buy a car is before you urgently need one, giving you more control and flexibility in negotiations.
  • A clear understanding of personal finances is critical when purchasing your next car.
  • Staying informed about market conditions, promotions, and vehicle features helps buyers avoid surprises and make confident decisions.
  • Artificial intelligence (AI) has changed the old rules of car buying for buyers and sellers.
  • Seasonal shifts in demand can open the door to additional savings.

Understand your finances

When it comes to large purchases like cars and homes, is a necessity.

“The moment you start thinking about buying a new car, that’s when you need to start going over your personal budget and seeing how much you can afford,” said Mike Meganck, Retail Auto relationship management director, West Market, for Wells Fargo Auto. “Buying a vehicle is an exciting experience, but it can also be overwhelming. Start with the basics: what you can afford, how you plan to use the vehicle, what size you need, gas mileage.”

Once you have a budget you’re comfortable with, including additional costs like maintenance, insurance, registration tags, and taxes, familiarize yourself with key financing terms:

  • Interest rate: Confirm the annual percentage rate (APR) of your loan. Determine whether the loan has a fixed rate, where the monthly payments and rate remain the same, or an adjustable rate, where monthly payments and rates can change. Your interest rate and monthly payments will depend on several factors, including your credit score, income, and vehicle preference. Interest rates on new vehicles are often lower than rates for used vehicles.
  • Total amount financed: Be sure the amount on your loan documents is the same as what you asked for. Consider local taxes when determining the total dollar amount to be financed. Check your county and state website for more information on local taxes.
  • Monthly payment amount: Make sure your monthly payments can be maintained within your budget.
  • Prepayment penalties: Find out if you can pay off your loan early without incurring a penalty. If you can’t, find out the cost of early repayment.
  • Aftermarket products and services: Credit insurance and other products and services may be financed with the purchase of the car. Consider whether you want these items, and if not, advise the dealer that you do not want to purchase them.
  • Length of your loan: Car loans generally range from 36 to 84 months. Longer terms can lower your monthly payments but could cost you more over the life of the loan.

Use an online payment calculator to help understand how much you can afford.

Analyze industry trends

A November 2025 Edmunds report said car shoppers are facing increased prices with . Kelly Blue Book reported in September 2025 that the average transaction price for a new vehicle for the first time, a 3.6% increase year over year.

“New car prices are at some of their highest levels in the last decade,” said Meganck. “The industry typically wasn’t doing 84-month financing, but it’s just a reality of where things are now. The advice used to be ‘keep your term as short as possible so you don’t have negative equity in your vehicle,’ but that’s hard for most people right now because of the prices.”

“If you’re someone who keeps your vehicles for an extended period of time, it’s important to understand what’s happening in the new‑car market and how that ties into the monthly budget you’ve already created,” Lyles said. “Leasing may be a viable option for those who like to change cars every two to three years. Your buying habits along with your monthly budget can help determine whether leasing or buying makes sense.”

Most people buy used cars rather than new ones, and the used car market depends heavily on lease returns.

“The industry is facing what some call a resetting or reckoning,” Lyles said. “A large share of people with expiring leases would typically go into a new lease or retail new purchase, but most customers are expected to buy out their leases because of affordability concerns.”

To help you stay within your budget:

  • Explore promotions and manufacturer incentives: Ask about current and future promotions and offers that may lower the price of the vehicle you’re interested in.
  • Make sure you fully understand the offer: Check the details and the fine print before committing to anything. Pay close attention to what is included in your loan and ask questions if you are unclear when finance personnel at the dealership review the contract with you at the time of closing.
  • Know your credit score: Your credit score matters because it may impact your interest rate, term, and credit limit. The higher your credit score, the more you may be able to borrow and the lower the interest rate you could receive.
  • Shop around for rates: Your credit score matters, but it doesn’t mean you’ll get the same rate at every financial institution or bank. Shop around to find the best offer for you.

A seasonal guide to purchasing

The old rules of car buying, like rushing to dealerships at month’s end, are fading fast. In their place are algorithms, smart sites, and dynamic pricing. How can consumers stay ahead of the game?

“Seasonal strategies are still viable,” Lyles said, “if you know where and when to look.”

Spring is typically not a great time to get a deal.

“After receiving their tax refunds, a lot of people go car shopping,” said Meganck. “While that extra cash helps with down payments, it also drives up demand and prices on used cars. It’s a tough time and a tough market for buyers. If you’re thinking about purchasing a vehicle for a high school or college graduate, you might be able to find a better deal by waiting until the fall.”

Summer brings relief for buyers who are looking at vehicles with four-wheel drive, as demand for them typically dips during warmer months, and prices often follow.

Fall delivers some of the year’s best opportunities.

“For the most part, vehicle manufacturers know how many units they’re going to sell in the upcoming year,” Meganck said. “By December, vehicle manufacturers need to start clearing previous year’s models, which means there’s going to be some really good deals available.”

Black Friday, the day after Thanksgiving in the United States, accelerates this trend, with dealers moving used inventory off lots while new models dominate promotions.

Understand these patterns, but don’t let them override your personal readiness to buy.

Research, research, research

Buying cars today is much different than it was 10, or even five, years ago. Artificial intelligence, coupled with consumers who are more informed than ever, has limited the amount of negotiating and haggling that typically takes place at car dealerships across the country.

“Per dealer research, the average consumer visits 11 websites to gain more information on a vehicle they’re interested in,” Lyles said. “It’s not surprising to get customers at the dealership who are as up to speed on the features, options, and technologies in vehicles as the people selling them.”

With market uncertainty caused by a variety of global factors, that number is likely to increase.

“There’s consistent messaging from economists around economic uncertainty,” Meganck said. “It’s been the reality for the last two years now. There was anticipation that the Federal Reserve would reduce interest rates, which would have an impact on the market. But right now, it’s hard to predict anything in the near term.”

According to , 16% of consumers said they will be buying a new car this year. Another 15% would like to but said it’s too costly. One option buyers may want to consider is used vehicles no more than a few years old.

“Used car prices are going up, and we’re seeing that across the market,” Meganck said. “That trend has been steady so far this year, and we expect it to continue through tax season.”

Lyles said, “Despite rising costs on used cars, there will be deals to be found. New doesn’t always mean better. A well-maintained one- to three-year-old vehicle can provide excellent value and reliability while keeping you within budget.”

  • Give yourself time to evaluate your options: Spend time at the dealership examining the vehicles you are interested in that are within your budget. Consider all available options, and try to avoid making a quick decision.
  • Test drive the vehicles you’re interested in: If possible, drive the vehicle in different environments to see how it performs and whether you feel comfortable behind the wheel.
  • Use services like Carfax to examine the vehicle’s history: If you’re purchasing a previously owned vehicle, find the car’s service records, number of previous owners, and whether it has been in an accident.
  • Research warranties: Manufacturers offer standard warranties for a set amount of time that are transferable, and buyers should consider vehicle reliability and average repair costs in order to determine if an extended warranty is beneficial or to ensure that you aren’t paying for overlapping coverage.
  • Be informed about deals: Before heading to the lot, find out the .

“When you head to the dealership, the hard work should be done,” said Lyles. “You should know what kind of features and equipment you need. That helps you land on other things like the size of the engine you need, towing capacity, and infotainment options.”

With all these factors to consider, it’s easy to lose sight of what matters most.

“The best car deal is one where you leave the dealership happy,” Meganck said. “Do your research, understand what you can afford, and you have a great chance of having a pleasant car-buying experience.”

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