Key Takeaways
- While year-end shifts for used cars are real, the biggest advantage is negotiating power, not guaranteed price drops.
- Sedans and smaller SUVs saw the biggest price improvements in November, while trucks and large SUVs remained relatively firm.
- For hybrids and electric vehicle (EVs), policy changes are reshaping prices in ways that don’t always follow seasonal patterns.
Why Used Car Prices Can Shift So Much at Year-End
If you’ve ever shopped for a car in December, you may have noticed that dealerships are more willing to negotiate. Year-end is one of the most volatile periods in the auto market, especially for used vehicles. This happens because dealers are trying to clear aging inventory before the new year while hitting annual sales targets and making room for incoming trade-ins tied to end-of-year buying. At the same time, many buyers pull back on major expenditures during the holidays, which naturally softens demand.
That’s why experts often point to late December, even New Year’s Eve, as one of the most buyer-friendly windows of the year. Timing alone can make a noticeable difference in what you pay, especially if you’re flexible on model year or trim level.
Why This Matters
Small timing decisions can translate into real money saved. Buying at year-end often means more negotiating power, even if sticker prices don’t immediately advertise it.
Which Vehicle Categories Are Getting Cheaper—And Which Aren’t
Not all used car prices behave the same way as the year winds down, and November’s data highlights those differences clearly. Month over month, several mainstream categories saw price declines as inventory built up and demand cooled. Sedans, smaller SUVs, and some midsize crossovers continued a gradual easing trend, which is good news for practical buyers focused on affordability and reliability.
Hybrids and electric vehicles saw the biggest price drop from October to November, with a decline of 1.8%. In addition to seasonal price influences, hybrids and EVs saw a sharp decline in demand due to the elimination of the $4,000 federal tax credit for hybrids and EVs purchased after Sept. 30, 2025.
Meanwhile, certain high-demand segments, such as trucks and larger SUVs, remain relatively resilient. While prices have flattened in other categories, they haven’t dropped as sharply for these vehicle types, especially in regions where utility and towing capacity matter.
The Bigger Picture—How These Prices Compare to Last Year
Month-to-month changes are helpful, but context matters even more. When you zoom out and compare prices year over year, the story becomes clearer. Used car prices hit an all-time high in 2022 owing in part to the pandemic. Supply chain disruptions caused a shortage of new cars and parts. While demand briefly dipped, it rebounded quickly—driven by low rates, stimulus checks, and shifts in transportation habits. The result: sharply higher car prices.
Since then, used car prices have come down quite a bit, but still not to pre-pandemic levels. This year-over-year view helps explain why prices can still feel expensive to shoppers even after a modest monthly dip. Prices may be down from a month ago, but they’re still not lower than fall of last year.
For buyers, this means December isn’t about chasing rock-bottom prices—it’s about leverage. The market is calmer, selection is broader, and sellers are more motivated than they’ll be in January.
The Bottom Line
As 2025 winds down, the used car market is sending mixed but useful signals. Prices are easing in several everyday categories, especially sedans, smaller SUVs, and electric vehicles, while trucks and larger SUVs remain relatively steady. December isn’t about waiting for dramatic price drops—it’s about using timing and category knowledge to your advantage. With motivated sellers, broader inventory, and less frantic market conditions than in recent years, informed buyers who stay flexible can still negotiate meaningful savings before the calendar turns to 2026.
