If you’re in the market for a new car, but you don’t want to pay that new car markup, consider owning last year’s model. You still get all the benefits that come with buying a new car, such as advanced technology, updated safety features, and that great, new car smell — plus cash savings that could amount to tens of thousands of dollars.
When is the best time to buy a car?
According to Edmunds, an automotive website that publishes information and resources to help consumers buy and sell cars, December was historically the month when dealers offered the largest discounts off the manufacturer’s suggested retail price, or MSRP. Reason was, they needed to make room for the next year’s car models, which usually arrived in lots between August and November.
But all that changed during the COVID-19 pandemic, when supply snarls simply upended traditional pricing schedules. Cars were stuck stranded on container ships thousands of miles away from where they were supposed to be, or unfinished in factories that had shut down due to lockdowns or, even worse, unbuilt altogether because of global chip shortages.
Vehicle demand was so strong that dealers didn’t offer much by way of discounts — they could command high prices because they knew they’d get them.
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Thankfully for consumers, the supply chain has since smoothed out, and dealers are once again offering incentives to get their vehicles off showroom floors. Add to it the fact that interest rates have been coming down so car buyers can receive subsidized loans at more affordable rates, and that basically makes now an ideal time to purchase a new vehicle.
But while all of these things spell positives for consumers, perhaps the best way to score the biggest discount on your next car, SUV, or truck purchase is simply to follow one of the oldest tricks in the playbook: Buying last year’s model.
Related: Consumer Reports: The 10 best SUVs of 2024
Why buy last year’s car model?
In order to entice consumers into buying the latest vehicle models, every few years, automakers redesign their cars, trucks, and SUVs by packing them with all the newest technology and plushest comforts — basically the latest bells and whistles.
But often, the previous year’s models, or the “leftover models,” as dubbed by Greg Fidan of the auto blog RealCarTips, are still sitting on the lots, sporting nearly brand-new technology and zero miles on their odometers.
To free up valuable space and get buyers in showrooms, dealers will add tremendous incentives or slash their prices to the bone. And, Fidan adds, the longer you wait, the bigger your discount can be: Some cash rebates and dealer incentives for models over a year old can range as high as $10,000 or more, especially if the model year is before a redesign occurs.
Of course, the longer you wait, the fewer options you will also have to choose from, simply because there will be less variety in terms of models and color. You won’t be able to place a custom factory order, either.
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Just don’t forget about depreciation when you’re making this big-ticket purchase decision. Since a car can lose as much as 10% of its value the minute you drive it off the lot, you’ll need to plan for the long term — even when buying last year’s model.
“Leftover models are treated as a 1-year-old vehicle, even if the model year is current,” Fidan said, “It’s not a good idea to buy one unless you plan on keeping it for more than 5 or 6 years. Otherwise, the depreciation cost will be hard to absorb.”
What are Consumer Reports’ 10 best cars of 2024?
Perhaps we should phrase that in the past tense, since 2024 is almost over. These cars were reviewed in February by Consumer Reports (CR), the leading automotive testing authority, which test-drove and rated all 260 new models that came out in the calendar year.
Using a mix of quantitative criteria, like road-test performance and safety, and qualitative data, such as predicted reliability and owner satisfaction, CR narrowed down the field and selected its 10 best. It also noted that each of these vehicles have automatic emergency braking as a standard feature — another major plus especially for safety-oriented families with children.
Related: Best new cars and SUVs under $30k according to Consumer Reports
CR even took the time to categorize its picks by price point and engine type: There are four hybrids, three plug-in electric vehicles, and one EV that made its 2024 list.
Just try to snap one up while the deals are hot and these cars are still around.
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A trusted name in consumer advocacy since 1936, Consumer Reports’ automotive reviews are considered to be the best in the industry. Here are their 10 picks for the best vehicles of 2024:
Subaru’s Crosstrek earned top marks from Consumer Reports in 2024.
Subaru
Subaru Crosstrek 2024
Price Range: $24,475–$30,000 | Owner-reported MPG: 28
The 2024 Prius’ sleek design and increased power made CR’s list of top cars.
Damian B Oh, CC BY-SA 4.0, via Wikimedia Commons
Toyota Prius & Prius Prime 2024
Price Range: $28,275–$36,125 | Owner-reported MPG: 50
The Subaru Forester finds itself among CR’s top-rated vehicles year after year.
Subaru
Subaru Forester 2024
Price Range: $26,050–$31,425 | Owner-reported MPG: 28
Consumer Reports calls the 2024 Mazda3 “highly entertaining to drive.”
Mazda
Mazda3 2024
Price Range: $18,650–$28,400 | Owner-reported MPG: 31
The Camry Hybrid earns praise for its fuel economy.
S5A-0043, CC BY 2.0, via Wikimedia Commons
Toyota Camry Hybrid 2024
Price Range: $25,250–$38,100 | Owner-reported MPG: 45
Consumer Reports says the 2024 Ford Maverick “puts the ‘fun’ in functional.”
Ford
Ford Maverick and Maverick Hybrid 2024
Price Range: $25,475–$37,575 | Owner-reported MPG: 26
Toyota’s popular RAV4 made CR’s list of best cars in 2024.
HJUdall, CC0, via Wikimedia Commons
Toyota RAV4 Prime 2024
Price Range: $43,690–$47,560 | Owner-reported overall MPG: 34
The roomy Highlander Hybrid also boasts great fuel economy, according to Consumer Reports.
Benespit, CC BY-SA 4.0, via Wikimedia Commons
Toyota Highlander Hybrid 2024
Price Range: $34,875–$54,000 | Owner-reported overall MPG: 34
CR says the BMW X5 “sets a high standard.”
Fields BMW Lakelands, CC BY 3.0, via Wikimedia Commons
BMW X5 & X5 PHEV 2024
Price Range: $49,400–$110,950 | Owner-reported MPG: 25
Consumer Reports says the 2024 Tesla Model Y “handles like a sports car.”
AuHaidhausen, CC BY 4.0, via Wikimedia Commons
Tesla Model Y 2024
Price Range: $26,450–$38,550 | Owner-reported MPG: N/A
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