Is Christmas a good time to buy a car - for some, yes

Is Christmas a Good Time to Buy a Car: Yes or No?


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Is Christmas a good time to buy a car? Or is another month the best time to buy a car? Summer certainly seems fitting – it’s a fun time to enjoy the freedom a new set of wheels can bring. From holiday road trips to spontaneous summer sunsets on the beach, cars can bring us memories we’ll cherish forever.

If a new car tops your list of Christmas gifts for car lovers, there are several reasons to consider when deciding if now is the right time to make that purchase. Of course, there are some reasons not to as well. To help you decide whether it’s the best gift to give yourself (or someone else) or whether to wait ’til another time of year, here are some pros and cons.

Reasons why Christmas is a good time to buy a car

Is Christmas a good time to buy a car? Yes, there are a few positives in favour of it potentially being the best time of year to buy a car.

Further down we’ll take you through cons; but first, here’s a rundown of the pros:

New for old

While cars may not go out of fashion as quickly as mobile phones (or their operating systems) their build date does impact their value and their demand. Many people have been saving for a new car that’s badged ‘this year’, so last year’s model just won’t cut it. Hence, there’s less competition for this stock. As a result, car salespeople are eager to get rid of old stock to make way for new models released at the beginning of each year.


Following on from the above point, there’s a bit of a frenzy come end of the calendar year to hastily clear out the old stock. This = sales, sales, sales.

For the buyer this means lots of December to March bargains. If you’re working on a budget and you don’t mind driving last year’s model then Christmas is a good time to buy a car. Go hard for a big discount and some add-ons at no extra cost – nothing ventured, nothing gained!

The best time to buy a car can be Christmas but depends on a range of factors

End of year quota

If you sell cars, hitting a sales target by the end of the calendar year is part of your business. This is another reason Christmas is a good time to buy a car. Not only can you generally find great deals at this time of year but you might be able to get an even better bargain via a car broker.


If you’re selling something as big as cars you need ample space for your stock. Another reason dealers make space for new models is that spending money on space that’s going to reap lower rewards isn’t much of an incentive. To sum it up, carrying last year’s build date can be a space and money waster.

Again, this is why Christmas and the new year can be a great time to get double deals on cars that come with last year’s build date.

Vehicle safety

ANCAP safety ratings are a valuable decision-making tool when buying a car. Buying last year’s build means it will likely have had its safety features assessed so you’ll know what you’re buying. Even though the new model may have improved safety, until it’s been tested you won’t know for sure.

Year-end extra $

For some people Christmas means a work bonus payment and for others it means the opportunity to ask for money instead of presents from family. Either way, this can be the much needed cash injection to make a down payment/deposit on a car. (Side note: make sure you have enough left for car insurance for your new car).

Extra ammunition

If this has convinced you to buy a new car this Christmas, read some extra tips from us so you buy right:

is Christmas a good time to buy a car - there are pros and cons

Reasons not to buy a car at Christmas

Christmas isn’t the only time of year that’s great to purchase a car. EOFY car sales provide another opportunity to make the most of sales targets and bargains. If you’re cash strapped at Christmas or don’t want to rush into a decision give yourself time to make the right choice.

A vehicle is a big commitment and you’ll want to make a sound decision you’ll be happy living with.

With that said, here are some reasons Christmas may not be the best time to buy a car:

Car value

Cars manufactured outside of Australia take months to arrive on our sunny shores. More time is then needed for them to be certified to be sold here so by the time they reach the dealership they’re already well into their build year.

While you can financially benefit from buying ‘old stock’ as the new year starts, this will also impact the resale and trade in value of your car.

Vehicle safety

Another bonus of buying the newest released models over last year’s build is that car safety is being improved all the time.

If you buy a car at the end of December 2022 or the start of January 2023, with a 2021 build date you’re bound to get a better price point. However, are the safety features already outdated? That’s a real possibility you’ll want to be certain of before making a choice.

Car specs

As with safety features much of the functionality of new car models is improved year on year. If you’re going in for last year’s model, you may also be going in for a lesser car. Of course this isn’t always the case, which is why it pays to cross check specs.

Occasionally there are only minor adjustments, or the changes are just to the aesthetics rather than the functionality.

Look and feel

If your heart is set on investing in a particular model that’s newly launched or soon to arrive, then settling for a quickly outdated model may not feel right. After all, a vehicle is a serious investment. Weigh up the benefit of spending less but not getting what you want over investing more in your real goal.

Ultimately the best time to buy a car depends on your budget, your options, your desired goal and you! For some Christmas may be the best time to buy a car while for others the first month they’ve saved enough or the EOFY may turn out the be their best.

Whether you buy an EOFY or Christmas car, protect it with car insurance

Protect your newbie with award winning insurance

Whether you balance price over model or model over price, you’ll want to protect your investment. Having quality, affordable car insurance will give you peace of mind your new vehicle is well looked after.

Benefits can include coverage for weather damage, theft and road incidents. Depending on which of our plans you choose, your car insurance may cover vandalism too. All PD Insurance plans include cover for damage to other people’s vehicles (which is a major boon if you put a dent in someone’s Ferrari)!

Drive confidently knowing you’ve got your ducks in a row with award winning comprehensive car insurance from PD. Click below to get a quote.

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