Best Time to Buy a Car in India — Discounts, Month-End, Year-End Deals

The discount game: How it works

Car dealers operate on thin margins. A ₹10 lakh car might have a dealer margin of only ₹40,000-60,000. They cannot slash prices randomly.

But they face intense pressure to hit monthly and yearly sales targets set by the manufacturer. Miss the target, and they lose incentive bonuses worth lakhs. Hit the target, and they earn fat bonuses.

This creates predictable discount patterns throughout the year. If you time your purchase right, you can save ₹30,000-70,000 on the same car.

The best times to buy (ranked)

1. March — Financial Year-End (Best discounts)

March is the financial year-end for dealers. Manufacturers push dealers hard to close the year with strong sales numbers. Dealers sitting on unsold inventory from the past 6-12 months are desperate to clear stock.

What you get:

• Cash discounts: ₹20,000-50,000
• Exchange bonuses: ₹10,000-30,000 extra for old car
• Free accessories: Floor mats, seat covers, extended warranty
• Corporate discounts (even if you are not corporate — dealers fudge this)

Total savings: ₹40,000-80,000 depending on the model

Which cars get the best discounts:

• Slow-selling models (older generation cars about to be replaced)
• Diesel variants (dealers want to clear diesel stock as demand drops)
• Top-end variants (high inventory cost for dealers)

What to watch out for:
Dealers might push you toward old stock (cars manufactured 6-12 months ago). Check the manufacturing date on the VIN plate inside the driver's door. If the car is older than 3 months, negotiate an extra discount for "aging stock."

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2. September-October — Festive Season (Navratri, Dussehra, Diwali)

Indians buy cars during festivals for auspicious reasons. Dealers know this, so they ramp up inventory and offer festive discounts to capture demand.

What you get:

• Festive cash discounts: ₹15,000-40,000
• Exchange bonuses: ₹10,000-20,000
• Free insurance upgrade or accessories
• Low-interest financing (3-5% APR vs usual 8-10%)

Total savings: ₹30,000-60,000

Which manufacturers go big:

• Maruti Suzuki (always aggressive during festive season)
• Hyundai, Tata, Mahindra
• Luxury brands (Audi, BMW, Mercedes) offer better financing deals but less cash discount

What to watch out for:
Festive season discounts are real, but dealers also hike prices leading up to the season to create the illusion of bigger discounts. Research the car's actual on-road price in August to compare.

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3. December — Calendar Year-End

Similar dynamics to March, but slightly lower discounts because manufacturers have already achieved most of their annual targets.

What you get:

• Cash discounts: ₹15,000-40,000
• Exchange bonuses: ₹10,000-20,000
• Free accessories or extended warranty

Total savings: ₹25,000-60,000

December is also when dealers clear stock to make room for next year's models (2027 models launch in January-February).

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4. Month-End (Every Month)

Every month, dealers face sales targets. In the last 3-5 days of the month, they are more flexible on pricing to hit numbers.

What you get:

• Small cash discounts: ₹5,000-15,000
• Willingness to waive handling charges or throw in free accessories

Total savings: ₹10,000-25,000

This works best for popular models where inventory is tight. For slow sellers, wait for year-end or festive season.

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5. New Model Launch (Older Model Gets Discounted)

When a manufacturer launches a new generation of a car, the outgoing model gets heavy discounts to clear inventory.

Example: When the 2024 Maruti Dzire launched, the 2023 Dzire got ₹40,000-60,000 discounts.

What you get:

• Discounts of ₹30,000-70,000
• Older tech but proven reliability
• Lower resale value (buyers prefer newer model)

Worth it? Only if the new model is just a facelift (minor cosmetic changes). If the new model has significantly better safety or features, skip the old one.

When NOT to buy

1. Start of festive season (August)

Dealers hike prices in August anticipating festive demand. Wait until mid-September when actual discounts kick in.

2. New financial year (April-May)

Dealers are restocking after March's clearance. They have fresh inventory and no pressure to discount.

3. Immediately after a new model launch

The new model commands a premium for 2-3 months. Dealers have waiting periods, so they do not negotiate.

Discount ranges by brand (2026)

Brand	Typical Festive/Year-End Discount
Maruti Suzuki	₹25,000-60,000 (aggressive)
Hyundai	₹20,000-50,000
Tata	₹20,000-50,000
Mahindra	₹15,000-40,000 (less on high-demand SUVs)
Kia	₹15,000-35,000
Toyota	₹10,000-30,000 (stingy on popular models like Fortuner)
Honda	₹20,000-40,000
Renault/Nissan	₹30,000-60,000 (desperate to move stock)
Luxury (BMW, Audi, Mercedes)	₹50,000-2,00,000 (on slow-selling models)

Rule of thumb: Struggling brands or slow-selling models get bigger discounts. Popular models (Creta, Fortuner, Scorpio-N) get minimal discounts even during year-end.

How to maximize your discount

1. Visit multiple dealers in the same city

Dealers from the same brand compete with each other. Get quotes from 3-4 dealerships and pit them against each other.

Script: "Dealer X is offering me ₹45,000 total discount. Can you beat that?"

2. Negotiate the on-road price, not ex-showroom

Dealers hide margins in handling charges, accessories, and insurance. Negotiate the final on-road price including everything. This prevents them from clawing back discounts through inflated add-ons.

3. Ask for the "corporate discount" even if you are not corporate

Many dealers have tie-ups with companies for corporate discounts. Ask if your employer has a tie-up. If not, some dealers will apply a generic "corporate scheme" just to close the deal.

4. Bring your old car for exchange (even if you plan to sell privately)

Exchange bonuses are real. Get the dealer's exchange quote, then sell privately for more if you want. But the exchange bonus discount is often non-negotiable otherwise.

5. Be ready to walk away

If the dealer will not budge, walk away. They will call you back within 2-3 days with a better offer if they are desperate to hit targets.

Should you wait 6 months for a discount?

Let's say you want to buy a car today (February 2026), but you know March will have better discounts.

Savings by waiting: ₹30,000-40,000
Cost of waiting: You lose 1 month of using the car

Is it worth it? Depends on how much you need the car. If you are using cabs or auto-rickshaws daily, the convenience of owning a car now outweighs saving ₹30,000.

If you have another car and can wait, then yes, wait for March or September.

Golden rule: Do not wait more than 3 months for a discount unless there is a specific reason (new model launching, major facelift expected).

The myth of "prices will drop next year"

Some buyers keep waiting for prices to drop. This rarely happens.

Reality:

• Manufacturing costs increase every year (inflation, labor, materials)
• Stricter safety and emission norms add cost
• GST and cess are government-controlled, not going down

Car prices trend upward over time. Waiting 12 months might save you ₹10,000 in discounts but cost you ₹30,000-50,000 in price hikes.

Exception: If a major regulatory change is coming (like BS7 norms in 2028), prices might spike, and older BS6 cars might get discounted. But this is rare.

The verdict

Best single time to buy: March (financial year-end) — biggest discounts, dealers desperate to clear stock
Best festive time: Late September to early October (Navratri/Dussehra) — good discounts + auspicious timing
Best for financing: Festive season (September-October) — lowest interest rates

If you can wait, align your purchase with one of these windows. If you need the car urgently, negotiate hard at month-end.

Do not overthink it. Saving ₹40,000 on a ₹12 lakh purchase is nice, but waiting 6 months to save 3% is not worth delaying ownership. Buy when you need it, but time it smartly if you have flexibility.