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New Survey: 83% of Car Buyers Will Cancel Purchase if Prices Rise 25%
Amid a volatile market and looming auto tariffs, a new consumer survey conducted by CarEdge reveals that most Americans are unwilling—or unable—to tolerate further increases in car prices and monthly payments. The Spring 2025 Car Buyer Survey, which gathered over 400 responses from prospective new and used car shoppers, shows just how sensitive demand is to monthly payment hikes.
Key Findings: New Car Buyers
- Even without any additional price increase, 42% say they’ve already canceled their car purchase plans due to high prices.
- 65% of new car buyers say they would exit the market entirely if monthly payments rose by just 5%.
- 78% would be out if payments rose by 15%, and more than 83% would stop shopping entirely if payments climb 25%.
“These numbers make it clear: new car affordability is reaching a breaking point,” said Zach Shefska, Co-Founder and CEO of CarEdge. “If monthly payments increase even slightly, automakers are going to lose a huge chunk of their customer base.
From 2022 to 2024, incentives were increasing. Now, that trend is reversed, with incentives making up just 7% of the average transaction price. With auto loan rates averaging 9% APR for new cars, any decline in manufacturer incentives could spell trouble for buyers and sellers alike.”
Key Findings: Used Car Buyers
- 37% of used car shoppers report they’ve already given up on buying due to high prices.
- Used car shoppers show similar price sensitivity, with 60% saying they’d be out of the market if prices rose 5%.
- That figure climbs to 74% at a 15% price increase, and 82% of buyers say they’d walk away if payments rose 25%.
Income Breakdown: Even High Earners Are Walking Away
The latest CarEdge Car Buyer Survey highlights a striking reality: car buyers at all income levels are reaching their breaking point.
- Lower income buyers are hit hardest: Among new car buyers with household incomes below $50,000, a staggering 51% have already canceled their purchase plans due to high prices.
- For used car shoppers in the same income bracket, the figure is nearly identical at 49%.
Even middle-income households are feeling the pressure:
- 43% of new car shoppers earning $50,000–$100,000 have also exited the market.
- 37% of used car shoppers in this income range say they’ve given up their purchase plans.
And while some might assume high earners are unaffected by today’s car prices, the data says otherwise:
- Higher-income households are slightly more resilient in the used market, but even among those earning $150,000 or more, 44% say they would be out of the market if used car prices rise by 5%.
- Among households earning over $200,000 annually, 32% of prospective new car buyers say they’ve already walked away. In the used market, 25% of shoppers in this high-income bracket report the same.
- While only 9% of all new car buyers said they wouldn’t change their plans regardless of price, that number jumps to 24% among households earning $150,000 or more.
“Car affordability impacts all households,” said Shefska. “Even six-figure earners are pushing back. That should be a wake-up call to automakers who have spent years increasing MSRPs and abandoning affordable (sub $25,000) vehicles.”
Across the board, households making over $100,000 per year are more price-sensitive than expected, with many drawing firm lines as affordability concerns mount. It’s not just new car shoppers who are reconsidering making a vehicle purchase. We see similar trends among used car buyers:
Shockingly, among households earning over $200,000 per year considering a used vehicle, one quarter say they’ve already canceled their purchasing plans. That’s the same percentage as those in the same income bracket who say they wouldn’t change their plans even if used car prices rose by 25%.
Market Implications
These findings come at a time when tariffs are threatening to push car prices even higher. The Trump administration’s recent pause on some trade duties does not include the automotive sector, where tariffs on imported vehicles remain in place.
“Any further price increases—whether from tariffs, panic buying, or other pressures—are likely to trigger a significant drop in demand,” noted Ray Shefska, CarEdge Co-Founder and used car sales veteran with 43 years of experience. “Automakers should think twice before pushing through further price hikes without offering offsetting incentives.”
The average new car transaction price is $47,962, according to Cox Automotive. A 5% increase in new car prices would send average transaction prices above $50,000 for the first time. Our data suggests that if that were to happen, 65% of would-be new car buyers would be out of the market.
Used Car Prices Are Not Immune
While the average used car is more affordable than a new one, used car prices are not insulated from the effects of rising new car prices. If tariffs or production constraints push new car prices even higher, many buyers will inevitably turn to the used car market—increasing demand and potentially driving up prices for pre-owned vehicles.
As of April 2025, the average used vehicle listing price stands at $25,180, well below the 2022 peak of over $28,000—but still high by historical standards.
“As demand shifts into the used market, we will see a second wave of price inflation,” Zach Shefska warned. “That could squeeze budget-conscious buyers even further and delay car ownership for many. We have already seen material price increases at dealer wholesale auctions, and we anticipate price increases to show up on the showroom floor quickly.”
About CarEdge
Founded in 2019 by father-and-son team Ray and Zach Shefska, CarEdge is a leading platform dedicated to empowering car shoppers with free expert advice, in-depth market insights, and tools to navigate every step of the car-buying journey. From researching vehicles to negotiating deals, CarEdge helps consumers save money, time, and hassle. Join the hundreds of thousands of happy consumers who have used CarEdge to buy their car with confidence. With trusted resources like the CarEdge Research Center, Vehicle Rankings and Reviews, and hundreds of guides on YouTube, CarEdge is redefining transparency and fairness in the automotive industry. Follow us on YouTube, TikTok, X, Facebook, and Instagram for actionable car-buying tips and market insights.Contact for Media Inquiries:
[email protected] | www.CarEdge.com
5 Things Smart Car Buyers Do — And 5 Mistakes Uninformed Shoppers Make
Buying a car is one of the biggest financial decisions most people make. But not everyone walks into the dealership with the same game plan. At CarEdge, we’ve seen the best and worst of car buying strategies — and let’s just say some deals are smarter than others.
Whether you’re buying, leasing, shopping new, or going used, here are the smart moves we recommend — and the costly mistakes to avoid.
5 Things Smart Car Buyers Do
1. Get Pre-Approved Before Visiting the Dealership
Smart buyers always secure financing ahead of time. This gives you a baseline to compare against dealer financing, strengthens your negotiating position, and protects you from inflated interest rates.
How to Get Pre-Approved Like a Pro
- Check your credit score
Lenders use it to determine your rate. Knowing it helps you estimate what you’ll qualify for. - Compare rates from multiple sources
Look at credit unions, banks, and online lenders. Even a 1% difference in APR can save you hundreds (or thousands). - Apply for pre-approval
Most lenders let you apply online in minutes. A soft credit check is usually enough to see your rate. - Know your loan terms
Look beyond the monthly payment. Consider the loan length, APR, and total amount financed. - Bring your pre-approval to the dealership
Use it as leverage. The dealer may offer better financing to win your business — just be sure to read the fine print.
Finance your car like a pro with this Free Financing Cheat Sheet
2. Use Data to Determine a Fair Out-the-Door Price
Smart shoppers don’t stop at MSRP. They research the true market value, calculate taxes and fees, and request the final out-the-door price upfront — often by phone or email. As long as you share your ZIP code for tax and fee calculations, there’s no reason a dealer can’t share their out-the-door price.
Concerned about your trade-in? Tell them you want to treat that as a separate transaction, and it shouldn’t impact the OTD price.
3. Time Their Purchase Strategically
Want a better deal? Smart buyers shop at the end of the month, end of the quarter, or during model year transitions. Dealers are more motivated to close deals when sales targets are on the line.
See the slowest-selling cars in America. These models are highly negotiable!
4. Negotiate Every Line of the Deal
It’s not just about the price of the car. Smart buyers also negotiate:
- The value of their trade-in
- Dealer add-ons
- Financing and F&I products like warranties or GAP
Take these FREE Cheat Sheets with you to the dealership – you’ll be glad you did!
5. Think Like a Pro When Leasing
Smart lessees understand their contract’s money factor, residual value, and capitalized cost — not just the monthly payment. They negotiate the selling price just like a cash buyer and always request the lease worksheet before signing.
Sound intimidating? No worries — Here’s our Complete Guide to Leasing a Car
5 Mistakes Uninformed Car Buyers Still Make
1. Focusing Only on Monthly Payments
A low monthly payment might look good, but it often hides a bad deal. Uninformed buyers don’t calculate total cost — or worse, they fall for 84-month financing just to “make it work.” Car salespeople are trained to manipulate loan terms so that even buyers with poor credit and little money for a down payment can get into a car that’s outside their budget. Financially, this is a recipe for disaster.
Every car buyer should focus on one number: the out-the-door price. The OTD price is not just the selling price of the car, it also includes taxes and fees so you know how much you’re really paying. Check out our free OTD price calculator for real-world examples.
2. Walking Into the Dealership Without Research
The worst way to start a deal is blind. Shoppers who skip research are more likely to overpay, fall for sales pressure, or miss out on available incentives.
Luckily, we’ve got exactly what you need to do your research. Here are just a few of our best free resources:
Free Original Window Sticker – Know ALL about the vehicle before you head to the dealership.
Check for the latest incentives – See 0% APR financing, cheap lease offers, and cash deals.
See how your car ranks – Compare depreciation, maintenance and insurance costs, and more with CarEdge’s Research Hub.
Car Buying Calculators – From car loan calculators to depreciation forecasts, and everything in between.
We’re on a mission to demystify car buying, selling, and ownership for all. We’ve got car buying help for every budget.
3. Trading In Without Knowing Their Car’s Value
Smart buyers use tools like CarEdge’s Car Value Comparison tool to know exactly what their vehicle is worth. The uninformed? They let the dealer set the price.
Always treat your trade-in as a separate transaction. Expect the dealership salesperson try and force the transactions together, but make it clear you’re not interested in that.
[Free Guide] Car Trade-In Tactics for Success
4. Signing a Lease They Don’t Understand
A “sign and drive” lease might seem simple — until you get hit with overage fees or lease-end penalties. Always review the full lease terms and avoid large down payments.
Avoid Costly Mistakes with These 7 Cheat Sheets, From Leasing to Buying & More!
5. Assuming Used = Cheaper
Not always. Some used vehicles cost more to finance than new ones — and buyers often skip vital checks like accident history, open recalls, or a mechanic’s inspection. Learn more about the importance of a pre-purchase inspection. Don’t get stuck with an unreliable car!
In 2025, the average used car loan rate is about 14% APR. That’s about 5% more than new car loan rates. Car buyers with excellent credit can even qualify for zero percent financing on select models. Always consider the total cost of ownership before deciding which vehicle is best for your budget.
Final Thoughts
Car buying doesn’t have to be intimidating — but it does require a plan. Whether you’re buying or leasing, the smartest thing you can do is show up informed and ready to negotiate.
Need help getting the best deal?
📞 Talk to a CarEdge Concierge for white-glove service — have us negotiate your deal from start to finish!
📊 DIY negotiators save BIG with CarEdge Pro. See local pricing and market trends before you buy.
Spring 2025 CarEdge Consumer Survey
We’re asking new and used car buyers a few simple questions to better understand price sensitivity in 2025’s car market. Thank you for contributing to our research!
2025 CarEdge Consumer Survey
The 7 Most Anticipated 2026 Cars — These Are Worth the Wait
The 2026 model year welcomes both highly-anticipated debuts and meaningful updates to some of the most popular cars on the market. From redesigned best-sellers to all-new models, there’s a lot on the horizon for car shoppers who aren’t in a rush to buy right now. Plus, most of these cars will arrive in customer hands within just a few months. Whether you’re after better tech, faster charging, or just reimagined styling, these upcoming 2026 cars, hatchbacks, and SUVs are worth the wait.
2026 Audi A6
The next-generation Audi A6 stays true to what it does best: executive-class refinement without the flash. Redesigned from the ground up, the 2026 A6 brings new exterior styling, a tech-heavy cabin with massive digital displays, and a long list of standard safety features.
Under the hood, U.S. models will come standard with a turbocharged 3.0-liter V6 producing 362 horsepower paired with Quattro all-wheel drive. Options like adaptive air suspension and four-wheel steering add an additional touch of refinement.
📆 Expected arrival: Late 2025
Where will it be made? Germany (To be impacted by auto tariffs)
Why it’s worth waiting for: Substantial luxury upgrades, new looks, and V6 power in a segment where others are going four-cylinder.
2026 Kia K4 Hatchback
Kia’s K4 sedan is already making waves, and now the hatchback version promises even more. Kia’s replacement for the discontinued Forte is orders of magnitude more compelling as a value-packed compact car.
Think of the K4 Hatchback as a car designed with global markets in mind — we’re just lucky that it’s coming to the U.S. It’s about 11 inches shorter than the sedan, making it easier to park and maneuver, yet it packs up to 59.3 cubic feet of cargo space with the rear seats folded—almost SUV-like utility in a sleek, compact form.
Interior and powertrain specs largely mirror the sedan, which is good news if you’re already a fan of the K4.
📆 Expected arrival: Mid-to-late 2025
Where will it be made? Mexico (To be impacted by auto tariffs)
Why it’s worth waiting for: A rare new compact hatchback that blends smart packaging with sharp design.
2026 Rivian R2
Rivian’s upcoming R2 SUV is shaping up to be one of the most compelling electric vehicles under $50K. Smaller and more affordable than the R1S, the R2 targets the same crowd as the Tesla Model Y and Ford Mustang Mach-E, but with Rivian’s adventure-ready edge.
Expect single-, dual-, and tri-motor configurations, with most specs good for 300 miles of range. Rivian has shared a few interesting features, like two gloveboxes, a new type of haptic knob on the steering wheel, and a very flexible interior. Plus, the R2 features the NACS (Tesla) charging port, so it’s easy to utilize the 20,000+ Tesla Superchargers around the U.S.
Rivian intends to enter the European market with the R2 at some point.
📆 Expected arrival: Early 2026
Where will it be made? Illinois and Georgia, USA
Why it’s worth waiting for: Rivian DNA at a more accessible price, plus true utility in a long-range, fast-charging electric SUV.
2026 BMW 3-Series
The BMW 3-Series is getting a full redesign for 2026, and it’s expected to blend Neue Klasse-inspired looks with major tech upgrades. While full specs are still under wraps, we anticipate the usual mix of turbocharged four- and six-cylinder engines, plus a new electric variant.
Inside, BMW is expected to roll out a wall-to-wall digital dashboard and next-gen iDrive software. A new M3 (gas and electric) is also in the pipeline. The 2026 3-Series is long-awaited. Basically, the 3-Series has been due for an upgrade for quite some time, and it’s finally happening.
EV-curious? The 3-Series will be accompanied by an all-electric BMW i3 in 2026. The BMW i4 has been one of the best-selling electric luxury sedans for some time, so BMW has high hopes for the new i3.
📆 Expected arrival: Mid-2025
Where will it be made? Mexico (To be impacted by auto tariffs)
Why it’s worth waiting for: The next-gen 3-Series should raise the bar again for tech and driving fun in a luxury sedan.
2026 Chevrolet Bolt EV
After initially discontinuing the Bolt EV, GM made a U-turn. The all-new 2026 Bolt EV is coming back with improved charging speeds, better range, and a price tag that should stay right around $30,000.
Now built on GM’s Ultium platform and produced at the Kansas City-area Fairfax plant, the Bolt EV is expected to undercut the Equinox EV and offer NACS charging capability for easy access to Tesla Superchargers. By 2026, the Bolt will have more competition in the budget EV segment than ever before, including a next generation Nissan LEAF. However, GM’s excitement for the new Bolt EV is contagious, and we’re looking forward to the Bolt EV arriving late this year.
We don’t yet have any images of the next-gen Bolt EV, but we expect it to resemble the larger Equinox EV in design language.
📆 Expected arrival: Late 2025
Where will it be made? Kansas, USA
Why it’s worth waiting for: One of the few affordable EVs with fast charging and a proven following—now better than ever.
2026 Hyundai Palisade
Hyundai’s popular three-row SUV gets a major upgrade for 2026, and it’s aiming upscale. The new Palisade is longer, wider, and packed with more tech and comfort features. Most importantly, a new 329-hp hybrid powertrain joins the lineup, alongside a redesigned V6.
The hybrid could deliver over 30 mpg and up to 620 miles of range, while still towing up to 4,000 pounds. V6 versions will continue to tow 5,000 pounds and come standard with an updated 8-speed automatic.
The most noticeable change for the 2026 Palisade will be its looks. With a bold front fascia and unique running lights, Hyundai is about to launch yet another eye-catching SUV on the heels of the redesigned Santa Fe and the popular IONIQ 5 EV.
📆 Expected arrival: Late 2025
Where will it be made? South Korea (To be impacted by auto tariffs)
Why it’s worth waiting for: A hybrid three-row that blends comfort, efficiency, and capability.
2026 Toyota CH-R+ (Hopefully)
Toyota’s long-overdue push into electric vehicles gains serious momentum with two models in 2026: the reimagined and improved bZ4X, and the revival of the CH-R as an EV. Built on the same platform as the bZ4X, this upcoming EV crossover looks sharper, drives better, and—most importantly—should cost a lot less.
There’s a catch: it’s not officially confirmed if the CH-R+ will be coming to the U.S. market, but signs point towards its arrival sometime in 2026 following a debut in the European market. If Toyota hits the mark and keeps the price in the low-to-mid $30,000s, the CH-R+ could finally give EV buyers a true budget-friendly alternative with up to 300 miles of range, fast charging, and sleek looks.
📆 Expected arrival: 2026
Where will it be made? Unknown
Why it’s worth waiting for: Toyota reliability in an electric crossover that might actually be affordable. We hope it arrives stateside!
Final Thoughts: Should You Wait for 2026?
If you’re in no rush to buy, the 2026 model year could be worth the wait—especially if you’re looking for next-gen tech, EV upgrades, or something new altogether. That said, don’t overlook the fact that tariffs and supply chain changes could shift delivery timelines or pricing. Stay flexible, and keep your eye on preorder timelines if one of these catches your eye.
🔎 Looking to buy before then? Check out local listings and protect your wallet with total cost of ownership data using CarEdge Research. Remember, you can have our experts negotiate your deal if you’re ready to buy without the stress or dealership hassle.
Stellantis Employee Pricing Continues in June, But Is Rarely a Good Deal
In April 2025, Stellantis announced its “Freedom of Choice” employee pricing program for Jeep, Ram, Dodge, and other brands sold in the U.S. The name sounds empowering, especially during a time of uncertainty around tariffs and rising vehicle costs.
But here’s the fine print: employee pricing cannot be combined with any other offers. Car shoppers can choose the offer that works best for them, and rarely does that turn out to be employee pricing.
We reviewed Stellantis’ current incentives and compared employee pricing savings to the brand’s traditional financing and cash offers. The verdict? In most cases, you’ll save more by skipping employee pricing entirely.
Employee Pricing vs. Other Incentives
Jeep, Ram, Dodge, and Chrysler shoppers have reportedly been told by dealers that this month’s employee pricing offer roughly equates to 5% below dealer invoice pricing, plus a $200 administrative fee. Using our free Dealer Invoice Price calculator, we did some simple math to estimate what buyers will end up paying with the “Freedom of Choice” employee pricing offer.
Here’s our closest estimation of how much you can save with Stellantis employee pricing compared to the best manufacturer incentives:
| Model | Estimated Employee Pricing Savings | Savings From Other Offers |
| Ram 1500 | $1,700 – $5,800 | Up to $10,500 |
| Jeep Grand Cherokee | $900 – $1,800 | Up to $7,000 |
| Jeep Wrangler | $800 – $1,200 | $4,000 – $6,000 |
| Jeep Compass | $500 – $700 | Up to $7,500 |
| Dodge Durango | $1,200 – $1,500 | $1,000 |
When we look at the best available incentives, we see exactly why employee pricing is rarely the better offer:
- Jeep Grand Cherokee: Up to $7,000 cash allowance for current lessees
- Jeep Wrangler: 10% off MSRP (~$4,800), or 0% APR for 36 months
- Jeep Compass: $7,500 cash allowance, or 0% APR for 36 months
- Ram 1500: $10,500 total cash savings for current lessees
- Dodge Durango: Just $1,000 cash allowance, which is close to the employee pricing discount
The bottom line: The other incentives usually beat employee pricing by thousands—especially if you qualify as a current lessee.
Where Employee Pricing Actually Makes Sense
There’s one notable exception: the Dodge Durango. With only $1,000 in cash available through traditional incentives, employee pricing of $1,200 to $1,500 may offer a slight edge.
However, this is the exception, not the rule. On every other top-selling Stellantis model we analyzed, employee pricing resulted in smaller savings than the cash or APR offers already on the table.
Why Stellantis’ “Freedom of Choice” Pro Is Mostly Marketing
Stellantis wants to frame this promotion as a win for buyers—but in practice, it’s a strategic move to repackage existing discounts under a new label. And with auto tariffs now in effect, automakers are under pressure to maintain demand as affordability takes a hit.
Here’s the current context:
- Tariffs are live: The U.S. government’s 25% import duty on foreign-built vehicles began in early April. While many Stellantis models are assembled in North America, tariffs still increase parts and production costs across the board. See which models are impacted.
- Inventory is high: According to CarEdge Pro, Stellantis is sitting on plenty of unsold 2024 inventory, particularly for models like the Ram 1500 and Jeep Compass. Here’s a breakdown of new car inventory for Stellantis brands in 2025:
- Ram: 137 days of market supply (88% above the industry average)
- Jeep: 121 days of market supply (66% above the industry average)
- Dodge: 127 days of market supply (74% above the industry average)
- Chrysler: 78 days of market supply (7% above the industry average)
- Cash is king: With large cash incentives and 0% APR financing still in effect, most buyers will do better with traditional offers than with employee pricing.
So… Is Stellantis’ Employee Pricing a Good Deal?
Not really — at least, not for most buyers. This promotion is about reshaping perception more than reducing prices. The idea of paying “what the employees pay” sounds like a deal. But when it’s your money on the line, the only numbers that matter are how much you’ll actually save.
Before you head to the dealership:
- Check the Dealer Invoice Price with CarEdge to see what others are really paying
- Compare all available incentives, including cash back, APR offers, and lease deals
👉 Take these car buying cheat sheets with you to the dealership!
And remember , you can always have us negotiate the best deal on your behalf. We’re simply here to help!
