If you’re wondering who will have the best car deals in July, you’re at the right spot. With prices still high and interest rates holding firm, finding a good deal can feel like searching for fireworks in the daytime. But here’s the good news: there are some great deals out there – you just need to know where to look.

Let’s break it all down.

The Car Market Right Now: High Prices, Falling Inventory

New Car Market Update

After a spring rush leading up to the U.S. import tariffs, new car inventory has started to shrink again. Nationwide, dealers have about 2.5 million new cars, which translates to 70 days of supply according to the most recent available data from May. 

No surprise here: cars are still outrageously expensive. The average new car price rose to $48,883 in May, up 3.2% year over year. Most automakers are not raising prices across the board yet, but we’ve seen Subaru and Toyota announce price hikes over the past month. More are likely on the way. 

Inventory of next-model-year vehicles is unusually low. In fact, only 3% of the market consists of 2026 models in June, with most 2026 inventory coming from Honda, GMC, and Cadillac. That means leftover 2024s and 2025s are ripe for negotiation.

The sad truth is that the main reason so few 2026s are on dealership lots today is that automakers are debating whether to hike prices. We’ll soon know where 2026 prices are headed. In the meantime, here are 2026 models we’re looking forward to.

👉 We’ve gathered all of the best July car sales for you here, including Independence Day specials.

Used Car Market Update

Used car prices are still high, but gradually falling. The average listing price is now $25,540, and older vehicles (5+ years), EVs, and compact crossovers are seeing the largest drops.

Used car APR remains brutally high, averaging 14%, and inventory under $15,000 is scarce. But if you’re buying with cash or financing with strong credit, it’s a fair time to buy — especially if you’re looking for value-priced older models.

We track used car prices weekly here.

These Brands Have the Best New Car Incentives Right Now

Here’s the insider secret: the best car deals in July 2025 will come from automakers with too much inventory. These brands have far more vehicles on dealer lots than average — and that means pressure to sell, especially as July 4th car sales kick off.

Compare this to the market average of 70 days of supply:

• Jaguar – 214% above average
  
• Audi – 80% above average
  
• Land Rover – 63% above average
  
• Hyundai – 60% above average
  
• Ram – 56% above average
  
• Mazda – 53% above average
  
• Mitsubishi, Jeep, Infiniti, MINI, and Mercedes-Benz – also well above average
  

For these brands, 2025 models are especially negotiable, and we’re already seeing generous 0% to 1.9% APR incentives on dozens of models. Many of these automakers will also be among the first to discount 2025 models as 2026 vehicles begin trickling in.

Pro Tip: Check your local listings for leftover 2024 models — about 187,000 are still on sale nationwide, and dealers are under pressure to move them fast.

These Brands Are the Toughest to Negotiate

On the flip side, automakers with the tightest inventory have no reason to cut deals. In July 2025, that includes:

• Toyota and Lexus – just 30 days of supply, 57% below the national average
  
• Honda – 45 days of supply
  

Translation? Fewer incentives, fewer choices, and more dealer markups. If you’re buying from these brands, you’ll need to be flexible. Whether it’s trim level, color, or even which dealership you’re willing to work with, be willing to work harder for deals (or have us negotiate for you).

What to Expect from July 4th Car Sales

Independence Day weekend is always one of the biggest car shopping moments of the year. This summer, with dealers sitting on excess 2024 and 2025 inventory and new models arriving any day now, shoppers can expect:

• Solid lease offers and low APR deals from high-inventory brands
  
• Aggressive discounts on remaining 2024 models (especially trucks and SUVs)
  
• Fierce competition among dealers looking to hit July sales targets
  

Want to skip the guesswork? We’re tracking every 0% APR deal and zero-down lease this month — so check out CarEdge Best Deals to see what’s out there.

How to Get the Best Deal on a Car in July 2025

Here’s what today’s smart shoppers are doing:

1. Shop brands with too much inventory. That’s where the deals are.
   
2. Negotiate on leftover 2024s and 2025s — not fresh 2026 inventory.
   
3. Don’t fall for dealer markups (sadly, they’re still out there for specialty cars and any with slim inventory).
   
4. Use the best car search tools to find local deals with ease.
   
5. Be willing to walk away — the buyer still holds power in many segments.

You Don’t Have to Go It Alone

Whether you want someone to take the wheel for you, or just need the tools to negotiate your own deal, CarEdge can help.

✅ Want us to do it all for you?
Let a CarEdge expert handle your deal with our Car Buying Service.

🔍 Prefer to DIY?
Use CarEdge Insights to get instant access to local pricing, inventory levels, and other real-time data.