There Are Two Good Times To Buy a Car in the Summer. Here’s When

Summer brings long weekends, vacation mode, and decent deals on the things you may be looking to buy. 

Retailers lean hard into Memorial Day, Fourth of July, and Labor Day sales, and dealerships do the same with holiday incentives. But there’s also a slump in late summer, between 4th of July and Labor Day (the first week of September) when vacations replace big purchases. That lull is the perfect time to negotiate better pricing. 

If you’ve got a big purchase on the horizon, timing it around one of these holidays or late summer is one of the easiest ways to pay less for the same thing.

Here are some summer buying tips for your next big purchase, plus tax tips if you’re buying a car.

Smart shopping strategies for summer savings

• Plan ahead: Make a list of upcoming large  purchases and check when they typically go on sale.
• Compare prices: Check multiple retailers, as the first discount you see isn’t always the best deal. 
• Budget for tax on top of the price: A lower negotiated price means less tax, too. But it’s added at checkout; it’s not included in the number you negotiate. 
• Negotiate (especially on cars): Holiday weekends can sometimes give you more leverage at the dealership.
• Look for rebates: Manufacturers often offer additional incentives on top of sale pricing.
• Check your credit: A higher credit score means better rates and terms. Credit Karma is a solid tool for that.

Three tax strategies if you buy a car

1. Check if you can deduct the sales tax

If you buy a car, keep a copy of your purchase records to possibly deduct the sales tax paid on your taxes. You could get up to $40,400 as a tax deduction for 2026. (There’s a phase-down for higher earners starting around an AGI of $505,000.)   

To deduct the sales tax you paid on your vehicle, you’ll need to choose between state and local income tax or state and local sales tax deduction. You can’t do both. 

2. Deduct expenses for business purposes

If you’re self-employed and using your vehicle for business, you can deduct either the business use portion of actual expenses you had for your vehicle or a deduction using the mileage rate. For 2026, you can deduct $0.725 per mile through June 30 and $0.76 per mile from July 1 onward. 

As a business owner, if you purchase a qualifying vehicle that’s used more than 50% of the time for business purposes you could take a Section 179 deduction up to $32,000 for 2026 if it is over 6,000 pounds. The remaining cost above that cap can generally be covered by 100% bonus depreciation. Vehicles weighing 6,000 pounds or under have a first year depreciation limit of $20,300.

3. Check if you qualify for the auto loan interest deduction

Starting 2026, a new tax rule may let you deduct part of the interest you’re paying on your auto loan. It doesn’t reduce your monthly payment, but for those who qualify, it can lower taxable income by up to $10,000 and potentially reduce what you owe or increase your refund. Find out if you qualify in our auto loan interest deduction guide.

At TurboTax, we can’t do anything about the sticker prices, but we can make sure your smart shopping shows up correctly at tax time. We’ll help you file correctly, from sales tax deductions and mileage to vehicle deductions and everything in between.