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Is It Better to Buy Or Lease a Car in 2025?
Choosing between buying and leasing a car remains one of the biggest decisions for car shoppers. In 2025, that question is even more relevant due to evolving market conditions, rising interest rates, and shifting manufacturer incentives. With insights from CarEdge Co-Founder Ray Shefska, we break down the pros and cons of buying versus leasing to help you navigate today’s car market with confidence.
Understanding Leasing in 2025
Leasing has historically been a popular option for drivers who want lower monthly payments and the ability to upgrade to a new car every few years. After a decline in popularity during the pandemic, leasing is once again on the rise in 2025—and for good reason.
How does leasing a car work? Leasing a car means you pay to use a vehicle for a set period—typically 2 to 4 years—by making monthly payments, but you don’t own it. At the end of the lease, you can either return the car, buy it for a predetermined price, or lease a new one.
Estimate your monthly lease payment with this new and improved Car Lease Calculator:
Leasing is increasingly the better deal for many shoppers in today’s market. With interest rates still elevated and new car prices impacted by global tariffs and supply challenges, leasing offers a more affordable path to driving a new vehicle. For many, lease programs are the best way to bypass the high financing costs associated with buying.
There’s also a strategic reason why automakers are doubling down on lease offers: it keeps customers engaged with the brand. When lease terms end, customers return to the dealership, increasing the chance of a repeat sale and building long-term loyalty.
As CarEdge’s Ray Shefska notes, many manufacturers are now working hard to increase lease penetration due to the benefits for both dealers and customers. While leasing once made up around 30% of new car transactions, that number fell to 17–18% during the downturn. In 2025, manufacturers are rolling out some amazing lease offers to reverse that trend. For buyers, this means now is a great time to take a serious look at leasing.
Important Note: Be aware that advertised lease deals typically do not include taxes and fees. If you’re not planning to pay these upfront, your actual monthly payment could be significantly higher than what’s promoted.
The Benefits of Leasing a Car
Leasing in 2025 presents several notable advantages:
- Lower Monthly Payments: In a high-interest environment, lease deals often feature better terms than financing, making it possible to drive a better-equipped vehicle for less per month.
- Access to Newer Technology: Leasing allows you to drive the latest models every few years with the newest tech, safety features, and fuel efficiency improvements.
- Flexibility: When your lease ends, you can walk away, upgrade, or even purchase the car if you’ve grown attached.
- Inventory Turnover Benefits: As leases come to an end, dealerships benefit from a steady influx of quality used vehicles, improving options in the used market.
The Benefits of Buying a Car in 2025
Buying remains a solid option—especially for drivers who keep their cars for the long haul or who rack up high mileage annually. Here are the core benefits of purchasing:
- No Mileage Limits: Unlike leases, buying a car comes with no mileage restrictions, which is ideal for commuters and road-trippers.
- Long-Term Financial Value: Every loan payment builds equity. Once the loan is paid off, you own the car outright—no more monthly payments.
- Freedom to Modify: Ownership gives you the freedom to customize or modify your car as you wish, without lease restrictions.
- Stability Over Time: If you plan to keep your car for 5+ years, buying can offer better value than leasing. But if you’re considering selling after just a few years, be cautious—depreciation hits hard, and the math may not work in your favor.
Making the Right Choice in 2025
Whether to buy or lease a car in 2025 comes down to your personal goals, driving habits, and financial situation. Ray advises, “Customers should check the manufacturer website and see what kind of sales and lease offers are available in their area before heading to the dealership.” He also recommends comparing insurance quotes across models before finalizing your choice.
👉 See This Month’s Best Leasing and Financing Offers
When Does Buying Make Sense?
- You drive a lot and want to avoid mileage limits.
- You plan to keep the car for 5+ years.
- You want to build equity and eventually eliminate monthly payments.
- You like the freedom to modify or customize your car.
👉 Compare the best-value cars and trucks with CarEdge Research [Free]
When Does Leasing Make Sense?
- You want lower monthly payments and more car for your money.
- You like driving a new vehicle every few years.
- You don’t want to worry about long-term maintenance costs.
- You want to avoid high interest rates and take advantage of lease-specific deals.
- You’re okay returning the car in original condition and staying under mileage limits.
👉 Check Out Our Complete Guide to Leasing in 2025
What It All Boils Down To
In today’s market, with leasing incentives improving and financing rates remaining high, leasing is often the smarter move—especially if you’re seeing limited financing deals. Just be sure to read the fine print on lease offers and understand how upfront taxes and fees impact the monthly cost.
By doing your homework and staying informed, you can make the decision that best fits your lifestyle and budget in 2025’s fast-changing auto landscape.
Looking for help negotiating your car lease? Learn more about CarEdge’s white-glove Car Buying Services, now more affordable than ever.
Ford vs. Chevrolet: Who Has the Better Memorial Day Deals in 2025?
Memorial Day is one of the biggest car shopping weekends of the year, and Ford and Chevrolet are battling for buyer attention with very different strategies. Ford is leaning heavily on employee pricing and cash offers, while Chevrolet is rolling out ultra-low APR deals and more competitive leases—especially on trucks and EVs.
Which brand offers the better deals overall? We compared their top incentives across five popular vehicle segments to help you decide.
F-150 vs Silverado 1500: Chevy Takes the Crown
- 2025 Ford F-150
– No APR offer
– Lease the XLT from $619/month for 48 months with $5,388 due
– Cash Offer: Employee pricing ($3,000 – $5,000 estimated savings) - 2025 Chevrolet Silverado 1500
– 0.9% APR for 60 months
– Lease the LT 2FL from $409/month for 36 months with $5,289 due
– Cash Offer: $3,500 cash allowance
Verdict: This one’s not close. Chevy beats Ford on APR, lease price, and comparable cash incentives.
Explorer vs Traverse: Ford’s Lease Deal Stands Out
- 2025 Ford Explorer
– 5.9% APR for 72 months
– Lease the base trim from $259/month for 36 months with $3,999 due - 2025 Chevrolet Traverse
– No APR or cash offers
– Lease from $429/month for 24 months with $5,539 due
Verdict: Ford’s lease is far more attractive in both price and term length. Explorer wins this round.
Escape vs Equinox: Chevy’s Lease Is Cheaper
- 2025 Ford Escape
– No APR or lease offer
– Employee pricing ($1,500–$2,500 estimated), plus $3,000 cash - 2025 Chevrolet Equinox
– 2.9% APR for 36 months
– Lease from $299/month for 36 months with $2,449 due
Verdict: Ford has generous cash incentives, but Chevy wins on lease affordability and financing. Equinox comes out ahead.
Expedition vs Suburban: Chevy Offers Financing, Ford Offers Cash
- 2025 Ford Expedition
– No APR or lease offer
– Employee pricing ($3,000–$5,000 estimated), plus $2,000 cash - 2024 Chevrolet Suburban
– 0% APR for 60 months
– Lease from $879/month for 39 months with $9,619 due
Verdict: Ford offers better upfront savings, but Chevy’s 0% APR may be more valuable for buyers financing a large SUV. Call this one a tie depending on how you’re paying. It’s important to note that Chevrolet’s incentives on the Suburban and Tahoe are for leftover 2024 models. Just a few hundred remain across the nation.
Mustang Mach-E vs Blazer EV: Chevy Wins on Incentives
- 2025 Ford Mustang Mach-E
– 3.9% APR for 72 months
– Lease from $313/month for 36 months with $4,029 due
– Includes free home charger and installation
– Does not qualify for the federal EV tax credit - 2024 Chevrolet Blazer EV
– 0% APR for 60 months
– Lease the AWD 2LT from $399/month for 39 months with $3,899 due
– Qualifies for the federal EV tax credit (subject to income limits)
Verdict: Ford offers a better lease price and throws in a charger, but Chevy’s 0% APR and EV tax credit make the Blazer EV the better all-around deal. Chevrolet is not yet advertising any offers for the 2025 model, so this isn’t exactly an apples to apples comparison.
Final Thoughts: Ford’s Cash vs. Chevy’s APR
If you’re financing a vehicle this Memorial Day, Chevrolet offers stronger incentives nearly across the board, with APR as low as 0% and lease prices that beat Ford’s in most categories.
Ford’s strategy this year leans on employee pricing and cash allowances, which can still be valuable—especially if you’re buying with cash or securing outside financing.
Before making a decision, be sure to check regional offers for both brands. Ford’s employee pricing can vary by model and location, while Chevrolet may sweeten the deal even further with conquest or loyalty incentives.
Need help finding or negotiating your deal? Let CarEdge do the hard work. Whether you’re buying or leasing, our car buying services are now more affordable than ever.
New Analysis: Tariffs Haven’t Pushed Car Prices Higher Yet
A month after sweeping automotive tariffs took effect, new car prices in the U.S. remain remarkably steady. CarEdge’s latest analysis of transaction data shows that despite headlines and automaker warnings, buyers haven’t felt the sting of higher prices—yet.
But don’t get too comfortable. As early signs from Ford suggest, automakers may soon begin passing on the cost of tariffs to buyers. Here’s what we’re seeing so far—and what to expect next.
America’s Best-Selling Cars Hold Steady
On April 1, 2025, just two days before new auto tariffs took effect, the average selling price of the 25 best-selling vehicles in the United States was $41,338. By May 1, it had risen by just $2 to $41,340.
That’s a negligible increase—especially considering typical spring seasonality in car sales. Among these top-sellers, only the Subaru Crosstrek and Chevrolet Trax saw prices rise by more than half a percent. The Honda Accord followed closely with a modest 0.48% increase.
Here’s a look at how prices changed for the top 25 best-selling vehicles in America from April to May 2025, with data sourced from CarEdge Pro, which is open to all:
| Make | Model | 4/1/25 Avg Selling Price | 5/1/25 Avg Selling Price | Price Change |
|---|---|---|---|---|
| Chevrolet | Silverado 1500 | $54,241 | $54,021 | -0.41% |
| Chevrolet | Equinox | $32,658 | $32,655 | -0.01% |
| Chevrolet | Trax | $24,968 | $25,123 | 0.62% |
| Ford | F-150 | $58,798 | $58,737 | -0.10% |
| Ford | Explorer | $49,740 | $49,701 | -0.08% |
| GMC | Sierra 1500 | $61,568 | $61,025 | -0.88% |
| Honda | CR-V | $37,972 | $38,043 | 0.19% |
| Honda | Civic | $28,791 | $28,825 | 0.12% |
| Honda | Accord | $34,184 | $34,348 | 0.48% |
| Hyundai | Tucson | $35,875 | $35,818 | -0.16% |
| Jeep | Grand Cherokee | $47,971 | $48,085 | 0.24% |
| Kia | Sportage | $34,428 | $34,482 | 0.16% |
| Nissan | Rogue | $34,521 | $34,554 | 0.10% |
| Nissan | Sentra | $23,654 | $23,616 | -0.16% |
| Ram | Ram 1500 | $58,222 | $58,067 | -0.27% |
| Subaru | Crosstrek | $31,834 | $32,068 | 0.74% |
| Subaru | Forester | $36,876 | $37,017 | 0.38% |
| Subaru | Outback | $38,296 | $38,460 | 0.43% |
| Tesla | Model Y | $48,990 | $48,990 | 0.00% |
| Toyota | RAV4 | $37,590 | $37,524 | -0.18% |
| Toyota | Camry | $35,247 | $35,352 | 0.30% |
| Toyota | Corolla | $25,666 | $25,657 | -0.04% |
| Toyota | Tacoma | $46,763 | $46,644 | -0.25% |
| Toyota | Highlander | $52,079 | $52,073 | -0.01% |
| Toyota | Tundra | $62,514 | $62,627 | 0.18% |
The takeaway? For now, mainstream car buyers aren’t seeing noticeable price hikes, even in a market rattled by global trade policy.
What About Tariff-Exposed Imports from Mexico?
Vehicles imported from Mexico also show minimal pricing movement. In fact, the average price increase across 20 Mexico-built models sold in the U.S. was just 0.03% from April to May.
Still, a few models stand out with larger increases:
- Ford Bronco Sport: +1.58%
- Chevrolet Blazer EV: +1.51%
- Ford Mustang Mach-E: +1.34%
But price drops weren’t uncommon either:
- Ford Maverick: -2.08%
- Audi Q5: -1.81%
- Ram 2500: -1.07%
Here’s a closer look at selling price trends for every car made in Mexico and exported to the U.S.:
| Make | Model | Country of Origin | 4/1/25 Avg Selling Price | 5/1/25 Avg Selling Price | Price Change |
|---|---|---|---|---|---|
| Audi | Q5 | Mexico | $57,103 | $56,072 | -1.81% |
| BMW | 2 Series Coupe | Mexico | $49,960 | $50,081 | 0.24% |
| BMW | 3 Series | Mexico | $55,550 | $55,670 | 0.22% |
| Chevrolet | Blazer EV | Mexico | $49,843 | $50,597 | 1.51% |
| Chevrolet | Equinox EV | Mexico | $43,632 | $43,593 | -0.09% |
| Chevrolet | Silverado 1500 | U.S. and Mexico | $54,241 | $54,021 | -0.41% |
| Ford | Bronco Sport | Mexico | $34,107 | $34,647 | 1.58% |
| Ford | Mustang Mach-E | Mexico | $49,072 | $49,729 | 1.34% |
| Ford | Maverick | Mexico | $34,001 | $33,293 | -2.08% |
| GMC | Sierra 1500 | U.S. and Mexico | $61,568 | $61,025 | -0.88% |
| Honda | Prologue | Mexico | $54,310 | $54,354 | 0.15% |
| Kia | K4 | U.S. and Mexico | $25,221 | $25,261 | 0.16% |
| Nissan | Kicks | Mexico | $25,897 | $26,084 | 0.72% |
| Nissan | Sentra | Mexico | $23,654 | $23,616 | -0.16% |
| Ram | Ram 3500 | Mexico | $70,856 | $71,033 | 0.25% |
| Ram | Ram 1500 | U.S. and Mexico | $58,222 | $58,067 | -0.27% |
| Ram | Ram 2500 | Mexico | $64,231 | $63,544 | -1.07% |
| Toyota | Tacoma | Mexico | $46,763 | $46,644 | -0.25% |
| Volkswagen | Jetta | Mexico | $26,262 | $26,455 | 0.73% |
| Volkswagen | Taos | Mexico | $29,670 | $29,876 | 0.69% |
| Volkswagen | Tiguan | Mexico | $32,875 | $32,944 | 0.21% |
Canada-Built Models See Slight Uptick
Canada is home to production for several popular American-market vehicles, and these models saw a 0.82% average increase in selling prices from April to May 2025.
The Dodge Charger stands out with a 3.50% increase—but that jump has an explanation. Dodge continues to sell a mix of older 2023 models and newer 2025 Charger Daytona EVs. The newer, higher-priced models are beginning to make up a larger share of monthly sales. It’s 2025, but Stellantis continues to sell a few hundred 2023 Chargers every month.
Here’s how prices changed for all Canada-built vehicles exported to the U.S.:
| Make | Model | Country of Origin | 4/1/25 Avg Selling Price | 5/1/25 Avg Selling Price | Price Change |
|---|---|---|---|---|---|
| Chrysler | Pacifica | Canada | $47,735 | $48,140 | 0.85% |
| Chrysler | Voyager | Canada | $40,633 | $40,655 | 0.05% |
| Dodge | Charger | Canada | $58,055 | $60,086 | 3.50% |
| Honda | CR-V | U.S. and Canada | $37,972 | $38,043 | 0.19% |
| Honda | Civic | U.S. and Canada | $28,791 | $28,825 | 0.12% |
| Lincoln | Nautilus | China and Canada | $61,361 | $61,503 | 0.23% |
Warning Signs Ahead: Ford Raises Prices on Tariff-Exposed Models
While average prices haven’t surged yet, some automakers are already adjusting. In early May, Ford quietly raised MSRP on three of its most tariff-exposed models—all built in Mexico:
Price hikes reached up to $2,000, according to dealer communications reviewed by Reuters.
Why does this matter? Because it suggests the real effects of tariffs are just beginning to show. Automakers may have waited until inventory cleared or pricing strategies were finalized before making any major moves. Perhaps they’ve been holding off on price hikes to show goodwill to their customers. Either way, now that Ford has blinked, others may follow.
Expect broader price adjustments to emerge in the coming weeks as automakers update pricing strategies for the 2026 model year. Stay tuned to CarEdge for the latest updates. We’ll be back with our next auto tariff price check in early June.
[FREE Tool] Tariff Price Checker: See if your next car is directly impacted
Toyota vs Honda Memorial Day Sales: Who Has the Better Deals in 2025?
As Memorial Day car sales heat up, many shoppers are comparing two of the most trusted automakers in America: Toyota and Honda. Both brands offer strong incentives this May, but depending on the type of vehicle you’re after, one stands out as the better deal. So who’s winning Memorial Day 2025? Let’s break it down.
Honda Edges Ahead—But Not in Every Category
When it comes to overall savings, Honda beats Toyota in most Memorial Day offers for 2025, especially for buyers financing with low APR. Models like the Honda Accord and Honda Passport come with market-leading financing rates, and better lease terms in many regions.
However, Toyota’s not out of the game. In fact, shoppers looking to lease a compact sedan or a minivan will find Toyota’s deals hard to beat, especially for the Toyota Corolla and Sienna.
Let’s compare the top matchups in May to see where the real deals lie.
RAV4 vs CR-V: Honda’s APR Wins, Toyota’s Lease Is Lower
- 2025 Toyota RAV4
– 4.99% APR for 60 months
– Lease the LE from $319/month for 36 months with $3,999 due - 2025 Honda CR-V
– 3.49% APR for 60 months
– Lease the EX from $369/month for 36 months with $3,899 due
Verdict: Honda takes the win on financing, but Toyota offers the more affordable lease. The better deal depends on how you plan to pay.
Camry vs Accord: Honda Dominates in Both APR and Lease
- 2025 Toyota Camry
– 4.99% APR for 60 months
– Lease the LE from $259/month for 36 months with $3,999 due - 2025 Honda Accord
– 2.99% APR for 60 months
– Lease the LX from $279/month for 36 months with $3,699 due
Verdict: Honda wins this one easily, offering a lower APR and a lease with less due at signing.
Corolla vs Civic: Toyota Wins by a Mile
- 2025 Toyota Corolla
– 4.99% APR for 60 months
– Lease the LE from $199/month for 36 months with $3,999 due - 2025 Honda Civic
– 5.99% APR for 60 months
– Lease the Sport from $289/month for 36 months with $3,799 due
Verdict: This is Toyota’s strongest Memorial Day deal. The Corolla’s lower lease price and financing beat Honda’s Civic by a wide margin.
Highlander vs Passport: Honda’s Passport Has the Upper Hand
- 2025 Toyota Highlander
– 4.99% APR for 60 months
– Lease the SR5 from $469/month for 36 months with $4,999 due - 2025 Honda Passport
– 1.99% APR for 60 months
– Lease the 2026 Passport AWD RTL from $509/month for 36 months with $5,099 due
Verdict: While the Highlander lease is more affordable, Honda’s APR financing blows Toyota’s out of the water. Financing? Go with the Passport.
Sienna vs Odyssey: Families Will Love Toyota’s Lease Deal
- 2025 Toyota Sienna
– Lease from $399/month for 36 months with $3,999 due
– No APR offers advertised in May - 2025 Honda Odyssey
– 4.99% APR for 60 months
– Lease the EX from $499/month for 36 months with $3,699 due
Verdict: Families looking for a minivan lease will find better value with the Toyota Sienna. Monthly payments are $100 lower than the Odyssey.
Final Thoughts: Check Regional Toyota Incentives Before Deciding
While Honda has stronger national Memorial Day offers in 2025, Toyota’s regional incentives can vary a lot, and in some areas, you might find even better lease or finance deals than those listed above. Always check your local Toyota incentives before ruling them out.
Looking for the easiest way to buy or lease a car this Memorial Day? CarEdge’s Car Buying Services can help you secure the best deal—without the stress. From full-service Concierge help to budget-friendly negotiation support, we’ve got your back.
Not Impressed With Memorial Day Car Sales? Blame Dwindling Inventory
Car shoppers expecting blowout Memorial Day deals in 2025 may have noticed something different this year: the discounts just aren’t what they used to be. From lackluster financing specials to higher-than-usual lease payments, automakers appear to be holding back. The reason? A sudden drop in new car inventory has automakers tightening the reins.
Here’s a look at the latest new car inventory numbers, and how automakers are responding to this temporary ‘buyer’s market’.
New Car Inventory Is Much Lower In May 2025
From April to May 2025, new-vehicle inventory in the U.S. fell from 3.08 million to 2.8 million vehicles — a 10% decline. The latest numbers are courtesy of inventory management firm Lotlinx, which shared their market update with Automotive News. That’s the steepest drop we’ve seen since early 2023, and it’s no coincidence.
As buyers rushed to beat potential tariff-related price hikes, dealer lots thinned out fast. With fewer cars available, many automakers have pulled back on Memorial Day incentives, especially for popular models.
The latest inventory tally found that the estimated days’ supply of new cars shrank to 58 days, down from 71 days a month prior.
Compare that to a year ago, when inventory stood at 2.86 million with a 75-day supply — and you can see why 2025 isn’t delivering the same sales splash. Although inventory levels are similar to May of 2024, cars are selling much faster right now.
Ford and Toyota Pull Back the Most
Among the seven automakers that report monthly inventory and sales data, Ford and Toyota saw the sharpest declines in supply. Toyota continues to operate with the tightest inventory in the U.S., holding less than 30 days’ supply.
Ford’s situation is more complex. Despite facing an inventory crunch, Ford also raised prices on several popular models, including the Maverick, Bronco Sport, and Mustang Mach-E, all of which are produced in Mexico and now subject to increased tariffs. Instead of making Memorial Day a big sales moment, Ford is charging more. You can read our full breakdown of Ford’s underwhelming Memorial Day sales and price hikes here.
Which Vehicles Are Toughest to Negotiate?
Lotlinx data shows hybrids are in the shortest supply at just 48 days nationwide. Traditional gas-powered vehicles follow at 59 days, with electric vehicles sitting at 90 days of supply — a month-over-month increase for the EV segment.
Here’s a quick snapshot of May inventory by new car segment:
- Sedans: 50 days’ supply
- SUVs: 56 days
- Pickups: 69 days
- Crossovers: 74 days
Even the highest-supply category — crossovers — saw declines from April levels.
Fewer Deals, But Not No Deals
Although overall Memorial Day incentives are milder in 2025, there are still some solid offers out there — especially if you’re flexible on model, trim, or location. We rounded up the Best Memorial Day Car Deals of 2025, including great lease specials, 0% financing, and up to $10,000 in cash offers. The deals are out there this May, if you know where to look.
But if you’re shopping for a high-demand model like the Honda CR-V, Toyota RAV4, or any hybrid under $35K, expect dealers to play hardball. With dwindling inventory, there’s just no reason to discount deeply — and they know it.
