Should You Buy a Car Now or Wait? Market Outlook for 2025

So far, 2025 is shaping up to be another year full of twists for car shoppers. After a buyer-friendly 2024 marked by falling prices and rising incentives, this year brings fresh uncertainty — from tariffs and interest rates to new model arrivals and shifting consumer demand. The big question remains: Should you buy a car now, or wait?

At CarEdge, we’re closely tracking the latest market trends to help you time your next car purchase. Here’s what you need to know for spring and summer 2025.

The New Car Market: Still a Buyer’s Game (For Now)

Let’s start with some good news: there are still solid new car deals available this spring. Automakers are trying to keep sales strong as summer approaches, especially with many 2024 models still on lots. Here’s what’s driving the deals:

1. Tariffs Are Creating a New Kind of Urgency

In early April, 25% tariffs took effect on imported vehicles. For now, automakers are absorbing the costs to keep prices competitive — but that won’t last forever. As supply chains adjust, expect higher MSRPs and fewer discounts on imported vehicles later in 2025. That means spring and early summer could be your last chance to buy before price hikes hit.

Use CarEdge’s Auto Tariff Checker to see if your next vehicle is impacted.

2. High Inventory = Negotiating Power

Despite steady sales, dealership lots are still full. Many brands have over 100 days of supply — well above the 60-day benchmark of a balanced market. That’s expensive for dealers, who are now more willing to offer discounts or throw in extra incentives to close a deal. If you’re shopping now, you’ve got the upper hand.

See the fastest and slowest-selling cars this month

3. 2025 Models Are Here — Even 2026 Models Are Tricking In

Every week, more 2025 models are hitting showrooms. As of April, about two-thirds of dealer inventory is still made up of leftover 2024 models, which means dealers are getting desperate to move them before summer incentives roll out. This puts you in a great position to score a deal — especially on models with aging inventory.

What to Expect in 2025

New car prices had been showing signs of softening, but auto tariffs are likely to send prices higher yet again. Here’s a snapshot of what we anticipate in spring and summer of 2025:

• Tariffs may push prices up on certain vehicles — especially cars with final assembly outside of the U.S.
• Follow the oversupply to find the best deals: Stellantis brands like Jeep and Dodge have the most inventory to sell. Nissan is close behind.
• Brands like Toyota, Honda, Hyundai/Kia, and Subaru will be tougher to negotiate due to their continued popularity. See the fastest and slowest-selling cars today before you shop. Fast sellers will be tough to negotiate.
• Don’t pay dealer markups, even for high-demand cars. Walk away if you’re being pressured.

Used Car Market: More Uncertainty Ahead

Used car prices have been falling for much of the past year, but that trend may be slowing. Here’s what we’re watching:

• Prices have stabilized at wholesale auctions and retail lots in recent weeks.
• Interest rates remain high, keeping monthly payments up — but if rates begin falling later this year, expect a surge in demand for affordable used vehicles.
• New car incentives are stealing attention, which has softened demand for used vehicles — but that could change quickly if tariffs push new prices higher.

In other words, it’s a bit of a coin flip. If you find a used car you love at a price and rate you’re comfortable with, it’s a perfectly fine time to buy. But if you’re not in a rush, waiting for loan rates to drop could unlock even better deals. The challenge is guessing when that will actually happen.

👉 See this week’s used car market update

Take Advantage of Deals Today

For well-qualified car shoppers, this month’s sales present a great opportunity to secure a low interest rate. With numerous incentives, now is a fine time to buy if you’re in need of a vehicle soon. Of course, the best decision for you wallet is usually to keep the vehicle you already have, but sometimes that’s not an option. If you’re considering an import, buying sooner may help you avoid the full impact of tariffs. Be sure to check if your next car is impacted by tariffs.

Looking at the used car market, it’s tougher to foresee price trends considering the dynamics at play. If tariffs send new car prices higher, more drivers will shift their focus to used car lots. This higher demand would send used vehicle prices higher. With so many moving parts, it’s difficult to predict where the used car market will be months from now.

CarEdge Co-Founder and 43-year auto industry veteran Ray Shefska has this timely advice for used car shoppers late in 2024: If you find the car you want at the right price with a loan rate you are happy with, now is a ‘fine’ time to buy. Waiting only prolongs the car market uncertainty at this point.

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