Do new car prices drop at the end of the year?

Often, but not always. As new model years arrive, dealers and manufacturers may offer larger incentives to clear outgoing inventory, and year-end sales goals can add motivation. The tradeoff is fewer choices of color and trim, and the outgoing model year will be worth slightly less at resale. Check manufacturer incentive pages, watch listing price changes and days on market, and compare out-the-door quotes rather than assuming a calendar date guarantees savings.