You remember how fun the holiday season was when you were a kid? Waking up to a shiny new bicycle with your name on it, or getting your hands on a PlayStation of your own, or maybe even being given a sweater that you wore until it was falling to pieces. Now that you’re more or less grown up, the thrill is rarely the same. Nobody wants to buy you a pair of rollerblades when you’re in your thirties.
Maybe you’ve got a spouse who always comes through with something special, or a dad who still loves to spoil you no matter your age. But, for the most part, you’re probably buying your own favorite gift more holiday seasons than not, and so are roughly one third of American drivers. That’s according to a survey from our friends at Extreme Terrain, who found that 29% of Americans have bought, or will buy, a new car for themselves for the holidays, with Toyotas like the 2026 RAV4 being especially popular.
Extreme Terrain polled 1,000 people for this study. Demographically, 12% of respondents identified as Gen Z, 54% as millennials, and 34% identified as Gen X or older. Here are some of the key findings to get us started.
The most surprising thing about these numbers may be that they’re a bit higher than you may have expected. But, if you think about it, it checks out, right? Sooner or later, the vast majority of Americans will have to buy a car, whether we do it in the summer or we wait until the holiday season.
During the holiday season, you may have year-end bonuses coming your way, or maybe you want to get a big purchase over and done with before the start of a new year. Maybe your reasoning is simply that December is the perfect month to capitalize on year-end car sales.
Another month, another Jeep special edition
This is to say: it’s not so much that people are buying new cars because it’s the holiday season, rather, one third of buyers in a given year are waiting until the holiday season to buy a car they already had their eye on. This may have as much to do with year-end bonuses and holiday sales as it has to do with the fact that the holidays are just the excuse you’ve been waiting for to spoil yourself.
Breaking year-end car-buyers down further, here’s how the most popular brands shake out.
The first thing we think when we look at the list above: That holiday-season really works its magic with Toyotathon and Happy Honda-Days, making a festive, month-long event out of a simple year-end sale. Toyota was popular across all three generation groups, coming in first for Millennials and Gen X, and third for Gen Z, who put Honda in first place.
People are spending more on new vehicles, and this shows just how much more.
In terms of segments, you again have millennials and Gen X in agreement, both preferring mid-size SUVs, while Gen Z is more likely to buy a small SUV. This undoubtedly owes to price differences, as Gen Z buyers tend to spend around $28,500 on their holiday cars, while millennials will spend around $29,700, and Gen X will spend around $33,200.
When asked why they were buying a vehicle at the end of the year, here’s how drivers answered.
Reason For Buying A Car During The Holidays
% Of Buyers
Work/commute
35%
End-of-year sales
30%
Previous car became unreliable
25%
Dealer clearance events
24%
Treating yourself
20%
End-of-year bonus
10%
Tax incentives/write-offs
8%
It warms the heart to know that one in five buyers are sealing the deal just because they wanted a car. Buying the vehicle you wanted for no other reason than because it appeals to you is one of life’s great joys, whether it’s a new 2026 Honda Civic Si, a C4 Corvette that needs a little work, or a semi-classic 1990s model Ford Explorer like your favorite uncle used to drive.
Would you buy a new car through your workplace?
What’s more, 18% of buyers reported a spontaneous purchase, to 80% having planned the buy. We would always advise that you do your homework before making a purchase, but if you wake up one day and decide now’s the time to finally get yourself a 2026 Jeep Wrangler, we’re happy for you.
Among respondents who aren’t buying cars, 32% cited an inability to afford a new vehicle, 14% are holding off due to high interest rates, and 16% are waiting until 2026 to make their next big purchase. 37% of holiday car buyers admit that the purchase affected their ability to buy gifts for others, and 53% of Gen Z car buyers had to dip into their savings for the purchase, so holding off might not be a bad idea for some.
The holiday season might or might not be the best time to buy a new vehicle, depending on your resources, your income, your needs, and a dozen other factors. The holiday season sees plenty of year-end sales, and prices tend to be provably lower at the end of the year, at least according to Consumer Reports’ Mike Quincy, who told Yahoo! Finance that one of the reasons you can get a better deal is because the sales staff actually sees less foot traffic in the colder months, when they need to get rid of old inventory. And this extends into February.
At the same time, all of the sales and bonuses and opportunities that come around in November and December create a sense of FOMO, or fear of missing out, and the holidays are the perfect excuse to splurge. We don’t want to discourage anyone from buying the car of their dreams, but there are a few points to consider before you hand over your down payment and sign on the dotted line.
If you’ve done your homework, then by all means, take advantage of holiday sales and buy the car of your dreams right now. Just don’t rush into an unwise purchase simply because you’ve earned a little treat.
Sources: Extreme Terrain, RepairPal, Yahoo! Finance.
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