December Dilemma for Car Buyers: Why the Best Time Isn’t Always Easiest?
Many companies also stop making some trims by November, so they do not carry old stock into the new year. So buyers in December often get the last lots. These cars may miss some updates that could come with the 2026 model.
December is one of the most confusing months for car buyers in India. SIAM data shows passenger vehicle sales at around 3,14,934 units in December 2024. This is part of a yearly total of about 4.3 million units. Discounts, low stock, and worry about resale all come together for buyers.
Model year and resale value
Most buyers today think about resale value before they buy a car. If you buy in December, the RC will show model year 2025. It will not show 2026 even if you buy at the very end of the month. This small detail can cut resale by around 5 to 10% in the first year. In the new year, many carmakers add new features or change the design. Experts say cars lose about 40 to 50% value in the first three years. But cars with the older model year lose value even faster once the new batch is on sale.
Many companies also stop making some trims by November, so they do not carry old stock into the new year. So buyers in December often get the last lots. These cars may miss some updates that could come with the 2026 model year, like added safety, better infotainment, or small design changes.
Stock limits and demand spike
In December, festive demand goes up a lot across the country. Year-end data from FADA and SIAM show registrations rising strongly in this period. Passenger vehicle sales alone crossed 3 lakh units in this single month. Popular cars like the Maruti Swift, Hyundai Creta, or Tata Punch sell out very fast. Dealers then try to move buyers to higher variants or give waiting periods of two to four weeks. In smaller towns, poor supply makes it even harder. Even though you see discount boards everywhere, the lack of stock means buyers cannot really bargain much.
Festive rush and finance pressure
Year-end holidays like Christmas often turn into family car shopping days. Many people want to finish the deal quickly. This leaves less time to compare different options. During this time, loan applications can go up by around 25% as more buyers choose EMI. The EMI offers at eight to 9% look nice at first. But there can be extra charges like processing fees or other hidden costs.
Insurance is also tied in different ways by each dealer. One dealer may offer more add-ons, another may offer a basic cover at a similar price. In the rush, many buyers do not check loan and insurance offers from banks or other lenders. Because of this, they end up paying around 5 to 10% more on finance and insurance than they might have paid with proper comparison.
Policy Changes from January
January often brings changes in RTO registration fees, insurance premiums, and sometimes emission rules like BS-VI updates. The Vahan portal usually shows a clear spike in registrations at the end of the year, as many people try to buy before the new charges start. Registration costs can rise by around 2–5%, which adds more pressure on buyers to close deals in December.
All this makes December a tough month for car buyers, with big discounts, worries about resale value, limited stock, heavy crowds, and rule changes just around the corner. SIAM’s 2024 total of 4.3 million passenger vehicles sold shows how busy the market really is. For buyers, it helps to read the RC details carefully and understand all costs clearly before saying yes to any deal.