Buying a new or new-to-you car should be an exciting experience. After all, it's a significant purchase and one that should work to improve your day-to-day life. However, more often than not, car shopping is stressful. There is an awful lot to worry about, such as what to inspect when buying a used car, or are you over-paying?
The latter point is especially prevalent at the moment, with price increases guaranteed sooner rather than later due to the introduction of tariffs on imported cars. That doesn't
necessarily mean that buying a new car makes no sense right now, and are you better off buying a used car. There are factors at play that are currently keeping used car prices strong too. For example, due to manufacturing complications during the pandemic era, around 8 million fewer cars were produced during 2021 and 2022, which of course translates to a reduction of used cars on the market now. The demand is still high, but supply is low, so prices are holding.
This might all sound like doom and gloom, and that 2025 is an awful year to be buying either a new or used car. However, the truth is actually the complete opposite, and here's why.
Read more: 10 Of The Fastest Non-Supercars In The World, Ranked By Top Speed
New Car Shoppers Should Run And Not Walk To Dealers In 2025
The big news right now in the automotive industry is all about tariffs. Imported cars are now to be subject to huge price increases, and while automakers are doing what they can to swallow these costs, it won't be long before they're to be passed over to consumers. Some manufacturers have taken to increasing prices already, such as Ford with the Maverick, Bronco Sport, and Mach-E -- one of which we reviewed just last year.
However, many dealers are still sitting on the remaining stock which was bought in at pre-tariff prices. That means there is a limited supply of brand-new cars still available at the 'old' prices, and once they're gone, they're gone. So, while it's not wise to rush into such a large purchase, if you've been considering a new model for some time now, acting quick could really save you a significant sum.
Furthermore, the Federal Reserve is keeping rates consistent, and some lenders are offering terms longer than 72 months now too, in the interest of keeping payments affordable. In addition to that, more applicants for finance are getting approved at the moment than in previous months, and that counts for subprime applicants too, which is great news for anyone looking to secure a new car on finance right now.
Used Car Prices Remain Steady, For The Moment
It's good news for those shopping around for a used car at the moment, too. While used cars aren't exactly what you'd call cheap -- they haven't been for some time now, thanks to a nationwide supply issue -- the prices are at least stable. The problem with used car prices occurred during the pandemic as less new cars were being made. This meant that more turned to used cars during the pandemic, which reduced supply, and now supply is still low due to that aforementioned reduction in new cars being made.
However, the introduction of tariffs has led to a huge influx of folks trading in their old cars for a new one at pre-tariff prices, which means currently the used market is having something of a supply revival. Used prices are increasing at a slow, steady, and manageable rate too -- the average price of one was up just $71 in June, in comparison to $190 for new cars. Furthermore, the interest rates remaining low will help those looking to secure finance on a used vehicle too. This good fortune won't last forever, as rising costs of new cars due to tariffs will eventually lead to used car prices increasing too, but acting fast will reward those who are able to buy in the remaining months of 2025.
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Read the original article on SlashGear.
