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What’s a Better Value in 2025, A New or Used Car? Experts Weigh In

What’s a Better Value in 2025, A New or Used Car? Experts Weigh In

It’s a new year, yet the car market is presenting drivers with the same classic dilemma: should you buy new or used in 2025? This year, several factors are reshaping the debate, including depreciation trends, interest rates, and price shifts in both new and used car markets. Making the right choice requires a close look at your financial situation and ownership goals. We spoke to CarEdge Co-Founder and auto industry veteran Ray Shefska about how car buyers can make smart, financially-sound decisions in 2025’s market.

Here are some key considerations to help you determine whether buying new, buying used, or leasing makes the most sense for you. 

Buying New in 2025 – Financing Deals Versus Depreciation Risks

CarEdge car buying Calculators
Use CarEdge’s Free Car Buying Calculators to Shop Smart

New cars are known for their steep depreciation, and in 2025, depreciation rates have returned to pre-pandemic levels. That means a new car can lose 20-30% of its value within the first two to three years of ownership. However, buying new has its advantages, too. Manufacturer incentives are sweetening the deal for buyers with attractive lease offers, low APR financing, and cash incentives that simply aren’t available for used car buyers. 

Here’s a look at the pros and cons of buying a new car in 2025.

Why Buy New in 2025?

  • Incentives Galore: Automakers are offering competitive promotions to attract buyers, including 0% APR financing and cash-back deals. See this month’s best offers.
  • Peace of Mind: New cars come with full warranties, the latest safety features, and no concerns about wear and tear from previous owners.
  • Custom Orders: Buying new allows you to select the exact trim, color, and features you want. However, custom orders can come at an even higher price.

Drawbacks of Buying New:

  • Higher Initial Cost: Even with incentives, new cars come with higher upfront prices compared to used options. The average new car price in 2025 is nearly $50,000.
  • Depreciation Risk: If you plan to sell your car in less than five years, you’ll likely face a significant financial loss due to depreciation.

If you’re considering a new car but worry about depreciation, leasing may be a better option for you in 2025. It allows you to enjoy the benefits of driving new without the financial impact of resale value losses.

👉 Check out our FREE Guide to Leasing in 2025

Interest Rates Matter – New Cars Have Lower Rates

Interest rates are a defining factor in the new versus used car debate. While borrowing costs remain high in 2025, automakers are making it easier to finance new cars by offering low APR financing. Used car loans, on the other hand, often come with higher interest rates from banks and credit unions.

Why New Cars Win on Interest Rates:

  • Lower APR Offers: Many manufacturers are advertising rates as low as 0% APR for new car buyers, helping you save thousands over the life of the loan.
  • Better Loan Terms: Lenders tend to offer more favorable terms for new cars compared to used, including longer loan periods and lower down payment requirements.

In 2025, the average used car loan rate is about 14% APR, while new car loan rates average 9% APR. Used car loans typically come with interest rates about 5% higher than those for new vehicles. Over a five-year loan term, this can significantly increase the total cost of financing a used car. If monthly payments are a concern, financing a new car with low APR may actually make more financial sense. 

👉 However, NEVER negotiate monthly payments – always negotiate the Out-the-Door Price to avoid add-ons and ripoffs. 

See Every 0% APR Offer This Month

New Tools Make Negotiating Easier Than Ever

The days of guessing what to pay for a new car are over. In 2025, buyers have access to tools that provide insight into dealer pricing, invoice costs, and manufacturer incentives.

How to Save Big When Buying New:

  • Use Dealer Invoice Pricing: CarEdge now offers Free Dealer Invoice Pricing, allowing you to see what the dealer pays for the car and giving you leverage in negotiations.
  • Keep Up With Local Market Trends: A decade ago, car buyers didn’t have access to behind-the-scenes tools like CarEdge Insights. Now, any car buyer in America can see the ins and outs of their local car market for each make and model. Learn more about Insights.
  • Compare Offers Across Dealers: With free online tools from CarEdge, you can easily master the art of negotiating. A big part of this is learning how to effectively cross-shop between dealerships. Always compare prices and incentives from multiple dealerships to ensure you’re getting the best deal.
  • Leverage Manufacturer Incentives: Research available incentives to maximize your savings before heading to the dealership. We gather the best incentives in one spot for you.

These tools make it easier than ever to negotiate confidently and secure the best deal on a new car in 2025.

used or new car in 2025
Source: Black Book

After years of record-breaking price hikes, used car prices are finally starting to decline. However, they remain elevated compared to historical norms, and deals can still be hard to come by without the right negotiating tools.

Why Consider Buying Used in 2025?

  • Lower Upfront Costs: Used cars are more affordable than their new counterparts, making them a better choice for budget-conscious buyers. Saving $100 or more on monthly payments over five to six years really adds up! 
  • Avoid Steep Depreciation: Buying a 3-5 year-old used car allows you to avoid the steepest depreciation period, saving you thousands. If you decide to sell in a few years, you won’t feel the heavy depreciation that a new car buyer in a similar situation would experience. 
  • Used Cars Are Negotiable In 2025: As competitive new car incentives remain, fewer car shoppers are heading to the used car lots. A slump in demand is good news for those willing to negotiate used car prices. 

Challenges of Buying Used:

  • Higher Interest Rates: As mentioned earlier, used car loans often come with higher APRs, which can offset some of the savings. In 2025, the average used car loan rate is nearly 14% APR.
  • Limited Incentives: Unlike new cars, used vehicles don’t come with manufacturer promotions or warranties. However, you can get a fair deal on an extended warranty.
  • Condition Concerns: Always get a pre-purchase inspection to avoid surprises with hidden issues.

Despite these challenges, buying used is still the go-to option for many drivers who prioritize affordability and don’t mind sacrificing the latest features.

Why a 3-5 Year-Old Used Car Could Be the Perfect Compromise in 2025

used car price trends in 2025

For many car buyers in 2025, a 3-5 year-old used car strikes the perfect balance between affordability, reliability, and long-term value. This “sweet spot” in the used car market offers significant benefits that make it a smart choice for budget-conscious drivers who don’t want to sacrifice quality or performance.

Here’s why a 3-5 year-old used car could be the ideal option for you:

Avoid Steep Depreciation

New cars typically lose 30-40% of their value within the first three years, making depreciation one of the biggest hidden costs of buying new. 

Lower Upfront Costs

Compared to buying new, 3-5 year-old used cars are significantly more affordable. The average used car price in 2025 is $25,571, nearly 50% lower than today’s average new car price.

Modern Features Without the Premium

A car that’s 3-5 years old still comes equipped with many of the features found in today’s new models, such as advanced safety systems and driver assistance. 

Remaining Warranty Coverage (Depending on Mileage)

A 3-5 year-old car is typically well within its prime and often covered by a portion of the manufacturer’s original powertrain warranty. If coverage is about to run out, get an Extended Warranty quote for peace of mind.

Better Financing Options Compared to Older Cars

While interest rates for used car loans are higher than those for new cars, lenders generally offer better rates for late-model used cars compared to older vehicles. This makes financing a 3-5 year-old car more manageable and less risky.

By choosing a 3-5 year-old used car, you get the best of both worlds: modern features at a lower price, and the ability to avoid the financial pitfalls of buying new. It’s a smart compromise for 2025 car buyers looking for value and reliability. To ensure you’re making a wise investment, always research market trends, request vehicle history reports, and schedule a pre-purchase inspection before buying any used car.

The Verdict: New or Used in 2025?

In 2025, the decision between buying new or used depends largely on your financial situation and long-term ownership goals.

When to Buy New:

  • You plan to keep the car for 5+ years and want the latest features.
  • You qualify for low APR financing and want predictable monthly payments.
  • Manufacturer incentives significantly reduce the cost.
  • To avoid depreciation altogether, consider leasing a new car.

When to Buy Used:

  • You want to avoid rapid depreciation and pay less upfront.
  • You’re willing to shop for 3-5 year-old vehicles in good condition.
  • You don’t mind driving a car with fewer bells and whistles.
  • You’re prepared to negotiate a great used car deal.

No matter which option you choose, doing your homework is key. Research market trends, compare deals, and always negotiate to get the best price possible.

CarEdge Can Help You Save

new or used car in 2025 - CarEdge

Navigating today’s car market doesn’t have to be stressful. With tools like the Research Hub, Free Dealer Invoice Pricing, and CarEdge Insights, you’ll have all the information you need to negotiate like a pro. Whether you’re shopping for new or used cars, we’ve got the resources to help you save thousands.

Ready for an expert to negotiate on your behalf? CarEdge Concierge is your perfect fit!

Start your car buying journey with confidence at CarEdge, where transparency meets savings. 

How to Avoid Negative Equity Car Loans

How to Avoid Negative Equity Car Loans

Negative equity, also known as being “upside-down” on a car loan, happens when you owe more on your car loan than the vehicle is worth. It’s a common issue for car buyers, but with the right strategies, you can avoid falling into this financial pitfall. Here’s how to steer clear of negative equity and make smarter car-buying decisions.

What Is Negative Equity?

Negative equity occurs when the market value of your car is less than the remaining balance on your loan. For example, if your car is worth $20,000 but you still owe $25,000, you’re upside-down by $5,000. This situation can limit your options if you need to sell or trade in the car, as you’ll have to cover the difference out of pocket. Getting rid of a car with negative equity is a stressful task, with only a few options.

That’s why it’s so important to avoid negative equity in the first place. Below are 10 things you can do to prevent negative equity car loans. 

How to Avoid Negative Equity on a Car Loan

How to Avoid Negative Equity on a Car Loan

1. Choose a Shorter Loan Term

Long-term car loans (longer than 60 months) may lower your monthly payments, but they greatly increase the risk of negative equity. Our most recent Negative Equity Report found that drivers with 84-month car loans have a median equity of -$8,485, while those with loans under 72 months in length are in the green. 

Cars depreciate quickly, especially in the first few years, while longer loans take more time to build equity. Aim for a loan term of 48-60 months to reduce your chances of being upside-down.

2. Make a Larger Down Payment

A down payment reduces the amount you need to finance, helping you avoid starting your loan in a negative equity position. Experts recommend a down payment of at least 20% of the car’s purchase price for new vehicles and 10% for used cars to avoid being upside-down on your loan when you drive off the lot. If you can’t quite reach that goal, aim for the largest down payment that is reasonable for your budget, or consider a less expensive vehicle.

3. Avoid Overpaying for Add-Ons

Dealerships often try to upsell add-ons like theft protection, cosmetic products, and overpriced warranties and service plans. While some dealership add-ons do add value, rolling their cost into your loan is a problem. This increases your loan-to-value ratio, heightening the risk of negative equity.

Check out our Free Guide to Avoiding Dealership Add-Ons

4. Research the Vehicle’s Depreciation Rate

Some cars lose value faster than others. Luxury vehicles, electric cars, and niche models often have higher depreciation rates. Research depreciation trends to choose a vehicle that retains its value better over time. Tools like the CarEdge Depreciation Calculator and CarEdge Depreciation Rankings help you prepare.

5. Negotiate the Purchase Price

Paying less upfront reduces your risk of negative equity. Use tools like CarEdge Insights and Dealer Invoice Price to negotiate a fair price.

👉 The #1 rule of negotiating car prices is to ALWAYS negotiate the out-the-door price, which includes taxes, fees, and add-ons.

6. Avoid Rolling Negative Equity Into a New Loan

This is a surefire way to have negative equity for years into the future. Trading in a car with negative equity and rolling the balance into a new loan only compounds the problem. You’re essentially paying for two cars at once, increasing the risk of being upside-down again. 

When it comes time to trade-in, cover the difference between your previous car’s value and the remaining loan balance so that you’re not rolling over negative equity into your next purchase. This would be in addition to your down payment, which should be as close to 20% as you can get for a new car, and 10% for a used car.

7. Don’t Overstretch Your Budget

Buy a car that fits your financial situation, not one that stretches it. Luxury features and upgrades are tempting, but they can lead to higher loan amounts and greater depreciation.

8. Make Extra Payments

If your budget allows, make additional payments toward the loan principal. This accelerates equity growth and reduces the impact of depreciation. Even $10 or $20 extra each month will add up over time.

9. Consider GAP Insurance

While GAP insurance doesn’t prevent negative equity, it protects you from financial loss if your car is totaled or stolen. In the event of an accident or theft, GAP insurance covers the difference between your car’s value and the remaining loan balance. Without it, you could actually owe money after an accident that was not your fault. 

How is that possible? Without GAP coverage, here’s what could happen with negative equity at the time of an accident or theft: Your auto insurance will pay out the vehicle’s market value at the time of the loss, which may be less than the remaining loan balance. You’d be responsible for paying the difference out of pocket. With GAP Insurance, your GAP coverage would take care of the difference. 

👉 Check out our full Guide to GAP Insurance

10. Lease Instead of Buying

Leasing might be a better option if you drive less than 15,000 miles annually and don’t plan to keep the car long-term. It’s also a great option for drivers who love a new car every few years. Leasing eliminates the risk of negative equity since you’re not responsible for the car’s depreciation.

See the Best Least Deals This Month

If you’re already upside-down on your car loan, there are ways to climb out of negative equity. Here’s our complete guide to overcoming negative equity car loans.

Drive Smart With CarEdge

CarEdge car buying help

At CarEdge, we’re dedicated to helping car buyers avoid the pitfalls of negative equity. From DIY tools like CarEdge Insights and the new Research Hub, to white-glove, personalized car buying services, we empower you to make informed decisions. Start your journey toward smarter car ownership today with CarEdge.

How to Get Rid of a Car With Negative Equity Quickly

How to Get Rid of a Car With Negative Equity Quickly

Being upside-down on a car loan, also known as having negative equity, is a stressful situation. It means you owe more on your car loan than your car’s current market value. This can happen due to factors like rapid depreciation, unfavorable loan terms, or rolling over previous negative equity into your current loan.

For example, if your car is worth $15,000 but you still owe $20,000, you’re upside-down by $5,000. As distressing as negative equity loans can be, it’s not uncommon. CarEdge’s recent Negative Equity Report found that more than one-third of drivers who financed have underwater auto loans

The good news is that there are several strategies you can use to part ways with your underwater loan as quickly as possible. We’ll explore practical ways to get rid of a car with negative equity, helping you make an informed decision each step of the way.

How to Get Rid of a Car With Negative Equity

Selling a car with negative equity loan

Looking to sell your car with negative equity as soon as possible? Here are a few proven strategies to consider, depending on your financial situation and goals.

1. Sell Your Car

If you’re serious about getting rid of your car, it is possible to sell a car with negative equity. If you’re looking to sell your car without trading it in at a car dealership, you’ll need to pay the difference between the sale price and your loan balance to settle your current loan when you sell your car. Check out our Complete Guide to Selling a Car with a Loan.

You’ve got a few options for selling your car, even if you have negative equity.

Private Sale

Selling privately often yields a higher price than trading in at a dealership. However, you’ll need to pay off your existing loan before selling. Most of us don’t have that much cash on hand, but luckily there’s still a way to make it work. If you have great credit and proven income, you may be able to obtain a personal loan to pay off the loan balance. After the car is sold, you can use the proceeds from the sale to immediately pay off your personal loan.

Private sales offer an advantage for older cars or vehicles with higher mileage because you can often command a higher selling price with a private buyer than what a dealership would offer. Remember that dealerships are likely to wholesale these types of vehicles, as they may not be able to retail them on their lot due to higher reconditioning costs and lack of financing options for these vehicles.

Newer late-model, low mile vehicles are difficult to sell to private party buyers because they don’t usually have the cash on hand to make large ticket purchases and will need to rely on financing options that are more readily available at licensed dealerships.

👉 Pro Tip: To determine the selling price for a used vehicle in a private party sale, have an appraisal done in person at Carmax and then add $2,000 to $2,500 to the written offer.

Sell to an Online Buyer

You can sell to online car buyers like Carvana, CarMax, and AutoNation, and Driveway without being required to purchase a vehicle from their store. These large Auto Groups will quickly appraise your vehicle (online or in person) and provide a conditional cash offer. While this option is highly convenient, understand that you’re unlikely to get as much for your car as you would with a private sale. If you’re deeply underwater, online buyers may either require you to pay the difference between the loan balance and sale price, or they may refuse to buy your car. However, this is a solid option for many.

Late-model, low-mileage cars in top condition are attractive to dealerships because they will retail them on their lot and be able to offer financing and other warranty products to maximize their return. However, to secure a fair market value, you need to shop around for the best offer.

Compare online offers with CarEdge!

Trade-In Your Car

When shopping for a replacement vehicle at a licensed dealership, you may have the option to roll any negative equity into the balance of the new loan, provided that the loan-to-value ratio meets the lender’s requirements. ⚠️ Beware, car buyers who roll over negative equity into a new loan are likely to end up in a similar situation in the future.

👉 Pro Tip: It’s fine to mention that you might have a trade-in during the negotiation of your replacement vehicle’s selling price. However, to maximize your trade allowance, avoid sharing detailed information with the dealership until you have 1) obtained an appraisal from a reputable brick-and-mortar store like Carmax, and 2) have first finalized the selling price of the replacement vehicle.

Pros of Selling Your Car:

  • Frees you from the car and loan and eliminates your financial responsibility.
  • Private sales can get you more than expected for your car, but it’s usually best to pay off the loan first.

Cons of Selling Your Car:

  • Selling a car with negative equity requires cash to cover the gap between the sale price and the loan payoff balance.
  • Trade-ins may lead to higher debt on a new car, and often lead to another underwater loan.

👉 Compare offers from online car buyers in minutes with CarEdge

If you can’t afford to pay off the gap between your loan balance and the car’s resale value, but you’re determined to sell, rolling over your loan is an option if you’ll be needing another vehicle. Rolling over negative equity involves trading in your car and adding the remaining loan balance to your next loan. While this solves the immediate issue, it often leads to a cycle of debt. It can be a viable option if your next vehicle is much more affordable (and with more affordable payments) than the car you’re coming out of.

Pros:

  • Immediate solution to get rid of the car.
  • May provide access to a more reliable and more affordable vehicle.

Cons:

  • Increases the loan balance on your next car.
  • Leads to higher monthly payments and longer debt obligations.
  • It is very easy to end up in years of additional negative equity when rolling over loans.

If you’re deeply underwater on your auto loan, must get rid of your car, but can’t afford to pay the difference between the car’s value and the loan balance, surrendering the car to repossession by the lender is an option as a last resort. 

You’re probably familiar with involuntary repossession from TV shows. It can get ugly and uncomfortable for all involved. However, voluntary repossession is different. You simply make arrangements to hand over the vehicle to a representative of the lender who holds the lien on your vehicle. You’re not selling the car, so you’re not getting paid. But if you need a way out of your car loan and burdensome payments, it’s an option.

All repossession, including voluntary car repossession, will hurt your credit score. Your score will see a sharp hit immediately, and the even will remain on your credit report for up to 7 years. Make sure you understand how having a lower credit score could impact your future before following through with repossession.

Options For Keeping Your Car and Overcoming Negative Equity

how to overcome negative equity

1. Make Extra Payments on Your Loan

Consider paying extra each month toward the principal balance. Most auto loans do not have prepayment penalties in 2025, but it’s best to check with your lender to confirm. Making extra payments reduces your auto loan balance faster, closing the gap between what you owe and your car’s value.

Pros and cons of making extra car payments

Pros:

  • Reduces the loan balance quickly.
  • Avoids additional loans or rolling over debt.

Cons:

  • Requires extra financial resources.
  • Could take time, depending on the size of the negative equity.

2. Keep It Simple: Pay Off the Loan As Agreed

If you don’t need to sell or trade the car, the simplest option is to keep making payments until the loan is paid off or the car’s value exceeds the loan balance.

Depreciation is the root cause of most cases of negative equity. The good news is that depreciation slows tremendously after the first three years of vehicle ownership. If you can afford to keep making payments with your current loan, you will eventually be out of negative equity, guaranteed. 

Pros:

  • Avoids additional loans or out-of-pocket expenses.
  • Builds equity over time.

Cons:

  • It may take years to resolve negative equity.
  • Depreciation could continue to outpace loan payments for some time.

How CarEdge Can Help

Navigating the complexities of negative equity and car buying doesn’t have to be stressful. With CarEdge’s free tools and expert services, you can make informed decisions:

👉 CarEdge Insights: Get real-time market data to understand your car’s value and local car market trends.

👉 Dealer Invoice Pricing: Negotiate the best price on your next car with this FREE tool.

👉 Car Buying Concierge: Let our experts handle every step of the buying, leasing, or selling process for you. Looking to get the most for your underwater trade-in? We can help!

Ready to take control of your car ownership journey? Visit CarEdge.com and start saving today!

New Car Prices Climb Higher, Approach All-Time Highs

New Car Prices Climb Higher, Approach All-Time Highs

As year-end sales season comes to a close, the state of today’s new car market is coming into focus. According to new numbers from Kelley Blue Book, the average transaction price (ATP) for a new vehicle rose in December 2024, once again approaching all-time highs. The average transaction price for a new car was $49,740 in December 2024, up 1.3% year over year and 1.5% higher than in November. December is often a peak month for new car prices due to the popularity of luxury models during the holiday season. While December 2022 still holds the record for the highest prices ever at $49,958, December 2024 came remarkably close, fueled by strong sales of luxury vehicles.

While new car prices rose, sales incentives remained steady at 8.0% of the transaction price, or approximately $3,958 per vehicle. This marks a 44% increase in incentives compared to a year ago, when new car incentives accounted for just 5.5% of selling price on average. 

Incentives were particularly robust in specific segments, with entry-level luxury cars (10.0%), compact SUVs (9.7%), and luxury compact SUVs (9.4%) leading the pack. On the other hand, categories like luxury full-size SUVs, sports cars, and small/mid-size pickup trucks saw the smallest incentives during 2024’s year-end sales.

Certain automakers stood out for their generous incentives. Volkswagen, Ram, and Nissan offered incentives exceeding 13% of the average transaction price, while Toyota, Land Rover, and Porsche offered the least discounts in December.

Source: Kelley Blue Book

December also saw strong sales of high-priced vehicles, which typically drive the year-end surge in new car prices. Notably, 5.6% of all new car sales transacted at prices above $80,000. Roughly 84,000 new cars sold above $80,000 in December 2024, the highest volume ever recorded. Full-Size pickup trucks played a significant role in the rising new car prices, with an average transaction price of $64,261.

Mitsubishi, Stellantis, and Volkswagen Offer Glimmer of Hope

new car price trends in 2025 - Mitsubishi

Despite the general upward trend, some brands recorded year-over-year price decreases in December 2024. Mitsubishi led the way with prices dropping more than 12% compared to December 2023. Buick and Volkswagen followed with decreases of 7.0% and 6.0%, respectively. Stellantis brands also saw price declines, with Jeep prices falling by 6.3%, Chrysler and Dodge prices down 4.3%, and Ram prices dipping 1.6%.

In contrast, several automakers experienced notable price increases. Cadillac transaction prices rose nearly 13% year-over-year in December. Tesla’s prices climbed 10.5% as Cybertruck sales drove the average higher.

What It Means for Car Buyers in 2025

December’s near-record highs weren’t entirely unexpected. The last month of the year is known as the best time of the year to buy a car, with both year-end incentives and holiday shopping driving the rush to buy. 2025 has arrived, and yet some year-end incentives were extended. January is unlikely to surpass December’s recent high, but with MSRPs creeping ever higher, the all-time record is within reach.

With average new car prices nearing record levels, it’s more important than ever for buyers to approach the market armed with tools to maximize their savings. Whether you’re shopping for a compact SUV, a luxury car, or a full-size truck, understanding the nuances of pricing trends and incentives is key to securing a great deal. That’s where CarEdge Insights comes in.

Shopping new car incentives is more important than ever with rising prices. Each month, we gather all of the best new car deals in one spot, the CarEdge Deal Hub.

👉 Check out the Deal Hub today! (100% FREE resource)

Free Tools Give Buyers the Power to Save

In 2025, don’t shop for new cars without Dealer Invoice Pricing in your car buying toolkit!!!


CarEdge now offers Dealer Invoice Pricing, a new FREE tool that helps car buyers negotiate effectively by revealing the true cost of a vehicle to the dealer. If you’re ready to navigate the complexities of the 2025 car market with confidence, explore FREE Dealer Invoice Pricing today.

Which Automakers Had The Most Recalls in 2024? It’s Not Even Close

Which Automakers Had The Most Recalls in 2024? It’s Not Even Close

When it comes to automotive recalls, 2024 had its fair share of surprising twists. Headlines may have crowned Tesla as the automaker with the most recalls last year, but a closer look reveals a different story. While Tesla indeed had the highest total number of recalled vehicles, nearly all were resolved remotely via over-the-air (OTA) updates – leaving only a small fraction requiring a trip to the service center. So, which automakers truly topped the charts for recalls requiring the inconvenience of a dealership visit? Let’s dive in.

Stellantis Takes the Crown for Total Recalls 

automaker with the most recalls

In 2024, Stellantis unseated Ford as the automaker with the highest number of recalls, issuing 71 in total. Whether it’s a dubious honor or an unflattering superlative, Stellantis has earned its new title: “The Recall King of 2024.”

But when it comes to recalls requiring physical service, Ford still reigns supreme. A whopping 4.8 million Ford vehicles needed in-person repairs last year, cementing its position as the champion of “most inconvenient recalls.” Here’s how the top automakers stacked up for dealership-required recalls:

  • Stellantis: 71 recalls
  • Ford: 67 recalls
  • BMW: 36 recalls
  • General Motors: 32 recalls
  • Mercedes-Benz: 28 recalls

The Automakers with the Fewest Recalls in 2024

automaker with the least recalls

Not all brands were plagued by recalls last year. Some automakers managed to keep their records (and their customers) squeaky clean. Among mainstream brands, Subaru had the fewest recalls, issuing just one in 2024. Here are the automakers with the fewest dealership-required recalls:

  • Subaru: 1 recall
  • Volvo: 3 recalls
  • Mazda: 8 recalls
  • Tesla: 8 recalls

Notably, boutique automakers like Rivian, Lucid, Maserati, and Polestar also had minimal recalls, but their significantly lower sales volumes make direct comparisons with major brands difficult.

Most Vehicles Recalled in 2024: Ford Tops the List

automaker with the most recalls 2025

When looking at the sheer number of vehicles recalled requiring dealership visits, Ford led the way, with nearly 5 million vehicles affected. Honda and Stellantis were close behind. Here are the leaders in total dealership-required recalls by vehicle count:

  • Ford: 4.8 million vehicles
  • Honda: 3.8 million vehicles
  • Stellantis: 3.8 million vehicles
  • BMW: 1.8 million vehicles
  • General Motors: 1.4 million vehicles

On the opposite end of the spectrum, Volvo had the fewest vehicles recalled, with just 304 vehicles needing repairs. Tesla, Porsche, and a few other premium brands also kept recall numbers low.

Here’s a look at the automakers with the most recalls in 2024. All data is sourced from the NHTSA:

AutomakerRecalls Requiring Service VisitsVehicles Recalled
Stellantis713,770,854
Ford664,776,770
BMW361,832,968
General Motors321,401,427
Mercedes-Benz28409,752
Hyundai231,053,441
Jaguar Land Rover21123,176
Kia191,220,498
Honda183,790,106
Volkswagen171,003,975
Nissan17141,748
Toyota161,221,666
Porsche1378,593
Mazda8297,941
Tesla839,605
Rivian54,883
Lucid34,031
Volvo3304
Polestar319
Subaru1118,173

Which Automaker Has the Most Recalls in 2025 So Far?

Tesla recalls 2025

Just one month into 2025, Tesla has already issued a major recall affecting 240,000 vehicles due to a faulty rearview camera. However, Tesla continues to leverage its OTA update capabilities, with most fixes expected to be completed remotely. For the few vehicles requiring hardware replacement, Tesla will address the issue at service centers.

New Feature: See Recalls, Safety Ratings and More When You Shop

caredge car search

Whether you’re researching recalls, safety ratings, or complaints, CarEdge has you covered. CarEdge Car Search now includes detailed NHTSA safety ratings, recall history, and customer complaints for every vehicle. Find your next car with confidence and make a smarter decision today!

👉 Check it out now at CarEdge Car Search