Why year-end is the best time to buy a used car in the Philippines

We are almost at the end of the 365-day journey that began a while back; it truly feels like a matter of a few days ago when we entered 2024 in full enthusiasm. Looking back at the events of the past months, we realized a lot had happened in the automotive industry itself. For instance, many cars were launched, facelifted models arrived, some models were discontinued, auto shows happened, and much more. However, the excitement doesn’t stop here, these last few days have much to offer.

Best time to buy a used car

For a prospective car buyer, new or pre-owned, these last few days are no less than a treasure to hunt. Gone are the days when prospective buyers used to avoid buying cars at the end of the year. Logic?

Firstly, it was a popular notion that a car registered in December 2024 would be valued as a year 2024 car, meaning it has 11 months of depreciation factored in. On the contrary, if the same vehicle was registered in January 2025, it is valued as a 2025 car. Out of the two, the latter will have a higher resale value, even though the two cars are registered just months apart.

Secondly, people believe that it is better to wait for a new model, to arrive next year than to buy an old or pre-loved car.

While all these pieces of advice are not incorrect, they have become irrelevant. They were 100% fit a few years ago, but they don’t have strong grounds to stand in today's evolving market. Consumers' car buying and selling habits have changed. For instance, with the easy availability of finance, customers are buying cars more than ever and the re-sale market is booming than ever. Meaning there are more and better options, and pricing is competitive. Also, it makes more sense to take advantage of the current savings than to worry about resale value in the future.

Why buy a used car at year-end?

If you want to buy a used car in the Philippines, the year-end is the best time to do so. Used car dealers work hard, night and day, to meet their year-end targets and clear as much inventory as possible.

A race to achieve targets: Most used car dealerships at this time try to push as many deals as possible to close, ensuring that their books look good. Furthermore, dealers who are far from achieving sales targets are desperate to sell as many used cars as possible. The result - desperate dealers offering attractive offers and discounts that are out of sight all year round. Alternatively, they can also offer amazing benefits with the purchase. The whole deal is to catch hold of the lucrative year-end bonuses and for that, a used car seller will offer even deeper discounts to buyers.

Clear inventory: Similar to any other industry, the used car market also looks forward to entering the new year with a clean slate, free from the old, dusty inventory. Therefore, dealers often are willing to lower prices during this time.

Depreciation: Dealers who wish to prevent their inventory from further depreciating are at an all-time high in desperation

Attractive deals: Most used car dealers use Christmas as an excuse to offer attractive promotions at the end of the year. Typical offers include two or three years of free maintenance, a low interest rate, and a low downpayment.

However, it is to be noted that not all used car dealers offer huge discounts and other attractive offers to clear their inventory. Some choose to base minimum discounts which is often a year-long practice, typically ranging from RM 1,000 to RM 4,000. It is important to note that such year-end trends are not consistent and might vary from region to region.

Also Read: Buying a used car in the Philippines? Here’s how to dodge scams

Other attractive times to buy a used car

As the used car market keeps on fluctuating, it is essential to understand specific trends to help target the best time to seal the deal. Here are some other time slots (apart from year-end) to consider -

End of the month/quarter
Dealerships often are in a constant struggle to meet targets. To boost their sales they often offer attractive deals at the end of the month/quarter. Thus making it a perfect time to make a purchase.

New model release
Mostly when a new car is launched there is an influx of trade-ins. And so there is a large selection of pre-owned cars available at great prices.

Holiday sales event
Major holidays like Chinese New Year, Eid, etc often bring along significant discounts and promos for car buyers.

Auto Expo
Several used car dealers/private players set up stalls at auto expos wherein to attract customers they offer used cars at discounts along with other lucrative deals.

Winter season
Winter is a slow season in terms of sales, thus leading to an influx of great deals and promos.

Worst time to buy a used car?

Where there is good, there is bad; the same is the case with used car buying timing. While we have discussed when you should buy a used car, it is our responsibility to let you know when not to buy a used car.

After a natural calamity

If there is a natural calamity like a flood or earthquake, the supply of used cars may increase as more and more owners try to get rid of their slightly damaged car (which they might try to cover from the buyer). Thus making the whole deal quite risky for the buyer.

Economic downturn

Experts suggest avoiding buying a used car or a vehicle in general after an economic downturn, as the supply may be limited. Thus leading to high prices due to the high demand for used cars.

Peak demand scenario

Economically speaking, avoid buying a used car when the demand is high, as it might lead prices to surge. For instance, during the appraisal period or summer season when used cars are needed for trips and vacations.

Used car: Buying tips & tricks

Do proper research: The first step is to do proper research, on the market and the model you wish to purchase. Look up for expert reviews, user reviews, offers, and prices.

• Set a budget: It is important to set an amount that you are willing to spend on buying a vehicle and while doing that remember to factor in registration, insurance, running, and maintenance costs.
• Inspect the vehicle: It is recommended to hire a professional to thoroughly inspect the used car you are willing to buy. Do check for the signs of damage and wear & tear.
• Offers & promos: Dealerships and private players often offer attractive offers that can save you some money.
• Test drive: Always, always test drive the car, as it will help find a lot out about the vehicle; its noise levels, comfort, and basic feel.
• Negotiate: Don’t be shy to negotiate the price. The trick here is to back your argument with research and be ready to walk away if the deal isn’t worth it.

Bottom line

The attractive year-end offers and discounts on used cars showcase the ever-evolving dynamics of the market, shaped by a few crucial factors like customer preferences, desire to capture year-end promotion/bonus, beautify the books, and market recovery. Therefore, it is always important to look around and plan your purchase at a time that offers you the best deal.

Also Read: Buying a used car? Here’s how a car advisor can help you