Although new car prices are predicted to remain high in 2025, it might be a better bet to buy a new car versus a used car if you’re looking to purchase this year. There are several factors favoring the new car market, according to report from Cars.com.
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Here’s a closer look at the reasons you should consider buying a new car in 2025.
Fewer Used Cars Will Be Available, Which Will Drive Up Prices
David Greene, principal analyst at Cars.com, believes that prices for both new and used cars will be high, but used car buyers in particular may struggle to find affordable options.
“In 2025, car shoppers are going to have a tough time finding affordable, quality vehicles,” he said. “Thanks to fewer sales and leases over the last five years, there’s now a smaller pool of late-model used cars, driving up prices and narrowing choices. On average, the used cars on the market are nearly a year older and have 4,300 more miles on them than the ones available five years ago.”
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New Cars Are Becoming More Affordable
New cars are still expensive, but they are predicted to be somewhat more affordable in 2025.
“The new car market is looking up when it comes to affordability,” Greene said. “Prices have leveled off at around $49,000, down from a peak of $50,300 in June 2023, and automakers are sweetening the deal with solid incentives. Even better, the inventory of new cars under $30,000 jumped 42% year-over-year in November, giving budget-conscious buyers more options to work with.”
The Bottom Line
Given the current state of the auto market, Greene recommends that car buyers opt for new vehicles this year.
“Considering these trends, 2025 could be the year to lean toward buying new instead of used,” he said. “With more affordable new cars hitting the market and the added perk of potential trade-in value, choosing new might be the smarter move for shoppers looking to get the most bang for their buck.”
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This article originally appeared on GOBankingRates.com: 2 Reasons You Should Buy a New Car Instead of a Used One in 2025
