In 2025, the new car prices remain within a few percent of 2022’s all-time record highs. This stability comes after a year of slow but steady price drops, followed by a jump in prices in late 2024. As new car price trends prove tough to forecast, keeping an eye on the market’s subtle movements becomes crucial for potential buyers and sellers alike.
Let’s delve deeper into the current state of the new car market.
New Car Prices – March 2025 Update
Which segments of new cars are experiencing price drops, and which are seeing a rise? Is now a good time to buy a new car, or is it a good time to sell? We will address these pressing questions and more.
According to the most recent data from Cox Automotive, the average transaction price for new cars is $48,641. That’s down slightly from the peak of $49,929 in December 2022. New car prices fell in January 2025, but were 1.3% higher than one year prior. Prices had previously fallen as low as $47,244 earlier in 2024, before bouncing back. Here’s a look at new car prices over the past year.
| Month-Year | Average New Car Transaction Price |
|---|---|
| 1/1/2024 | $47,401 |
| 2/1/2024 | $47,244 |
| 3/1/2024 | $47,218 |
| 4/1/2024 | $48,368 |
| 5/1/2024 | $48,389 |
| 6/1/2024 | $48,424 |
| 7/1/2024 | $48,166 |
| 8/1/2024 | $47,870 |
| 9/1/2024 | $48,397 |
| 10/1/2024 | $48,623 |
| 11/1/2024 | $48,724 |
| 12/1/2024 | $49,740 |
| 1/1/2025 | $48,641 |
Some new car segments saw notable price declines last month, while others are holding firm. New car incentives have fallen sharply since year-end sales concluded. The luxury vehicle segment has experienced notable price reductions, with Tesla, BMW, Audi, Cadillac, and Lexus seeing lower prices last month. Tesla is now a top-10 luxury brand in America, not just the leader of electric vehicle sales. We’ll see how the first month of 2025 turns out for new car price trends.
Negotiability Is Key
If you’re looking for the BEST deal on a new or used car, remember this: knowledge is power when it comes to negotiating car prices. When you have an understanding of local inventory dynamics, car price trends, incentives, and the negotiable aspects of a car deal, you’re better prepared to drive away proud of your deal.
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