Best New Car Incentives, Lease Deals for December 2024

Those looking to buy or lease a new car this December are in store for MUCH BETTER deals compared to last year - especially towards the last week of the year! Inventories on new vehicles have risen back to normal levels, incentives have been increasing across the board with larger rebates, better finance deals and much better lease deals... READ MORE ⌄

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Used car prices have come down as well, but I do expect a shortage of late-model used cars (2 to 3 years old) entering the market for the next year or so. This is due to the drop in leasing 2-3 years ago due to the supply shortages. Now we're starting to see the after-effects of that. The one bright spot are 2-3 year old electric vehicles, which are in some cases more affordable than their gas counterparts.

If you're looking to buy or lease a new car, I would try to time it towards the end of the month as dealers and manufacturers are both trying to meet year-end sales goals and should be more likely to negotiate on price.

It had become normal over the past couple of years for new car shoppers to be paying MSRP and even higher for vehicles. Besides a handful of very popular models, we're thankfully no longer seeing this, with some models offering upwards of 20% off MSRP now. Remember, getting a great deal foremost depends on the model, which is why you should really consider more than one vehicle when shopping for a deal. By getting bids from multiple dealers, you increase your chance of finding a "desperate" dealer that is willing to negotiate.

Adding uncertainty to all of this is ongoing world conflict and high interest rates. Interest rates have made monthly payments much higher, which makes affordability of news cars much harder, especially luxury cars. On top of this, lenders are becoming more strict with who they loan money to. Rejection rates for auto loans are at all-time highs, especially car shoppers with credit scores below 690 - it's a great time to be a cash buyer!

Although the Fed has started the process of lowering rates, interest rates are still anywhere from 6 - 10% on new cars even if you have good credit, but many manufacturers are offering low interest loans - even 0% financing on some vehicles in December. We've actually seen an uptick in finance deals being offered, which seems to be one of the major ways manufacturers are offering incentives right now. Many have also introduced loyalty and conquest bonuses, so if you do have a lease return coming up, this could put an extra $1,000 to $2,000 in your pocket.

My advice right now: start compiling price bids, many models are offering great deals this month, but if you have the luxury of waiting, the deals should get even better as we move into the end of fall (when leftover 2024 models will have to be sold off, and hopefully interest rates start moving down). We should continue to see increases in manufacturer incentives this fall as dealers and manufacturers are forced to compete again.

(Note: incentives can vary greatly by region; these figures may not be accurate in your local area. Always verify with your local dealers)