If you’re planning to shop for a car this February, you’re in luck – President’s Day car sales are almost here. Automakers and dealerships are rolling out some of their most competitive offers, hoping to move excess inventory before the spring car-buying season heats up.
But before you start shopping, it’s important to understand the trends shaping the 2025 car market. We spoke to CarEdge Co-Founder Ray Shefska to see what’s driving the automotive world right now. From February car price trends to the latest auto financing outlook, here’s what you need to know before heading to the dealership this President’s Day.
1. Many of Last Year’s Sales Continue in February

Heading into February 2025, 860,000 new 2024 models remain on car dealership lots. With that said, it’s no surprise that many of the best car deals from the end of 2024 are still available.
Automakers are pushing incentives to clear out remaining 2024 models, especially for brands with excess inventory. While some brands have returned to lower discounts, others—particularly Stellantis (Jeep, Ram, Dodge, Chrysler), Ford, and Subaru – continue to offer deep discounts, 0% APR financing, and lease specials heading into February.
See ALL of the best cash, finance, and lease deals right now
📌 Tip: If you’re on the hunt for serious savings, check dealership inventory levels. The higher the supply, the more negotiable the price. Remaining 2024 models are particularly negotiable in 2025.
2. New Car Prices Are Back Near Record Highs

The average new car price in January 2025 was $49,740 – just shy of the all-time record set in December 2022. Despite falling prices for some models, luxury cars and full-size trucks continue to push prices higher. The popularity of luxury cars in 2025 is contributing to rising average prices. In fact, more buyers than ever before are choosing luxury models with MSRPs over $80,000.
But it’s not just Mercedes and BMW that are thriving. Truck sales are healthy in 2025, with average selling prices north of $65,000 today.
Unfortunately, new car prices remain well above pre-pandemic levels. In fact, new car prices have risen over 40% in the past decade. This means that even with President’s Day discounts, buying a new car will still require strong negotiation skills.
📌 Tip: Use this ultimate Car Buying Guide to check market pricing and invoice pricing before heading to the dealership.
3. Auto Loan Rates Haven’t Fallen Much

Many buyers were hoping for major relief in interest rates in 2025, but auto loan rates are still high. As of early 2025, Cox Automotive reports that the average APR for new car loans hovers around 9%, while used car loans remain near 14% APR. The Federal Reserve has hinted that further rate drops will be slow to come in 2025 as inflation remains a concern.
Zero percent financing deals are rare – less than 5% of new car buyers secure these rates. To qualify for the lowest rates featured in 2025’s President’s Day car sales, including 0% APR offers, it’s crucial to have excellent credit and a solid debt-to-income ratio. If you’re looking for the best financing terms, consider getting pre-approved with a credit union or local bank before visiting the dealership.
📌 Tip: Don’t show your cards too soon. There’s no need to share how you’ll be paying for the car until after you negotiate the out-the-door price. That’s the number that matters.
4. Used Car Prices Are Falling (Slowly)
There’s good news for used car shoppers in 2025 – prices have been steadily falling. The average used car price in early 2025 is $25,721, and many models from 2021-2023 are becoming far more affordable than they were just a year ago.
However, time is of the essence for used car deals. Tax return car buying season is almost here, and will drive the demand for affordable used vehicles higher.
📌 Tip: Buying a car with your tax refund? Here are 5 tips for success.
5. Leasing Protects From Depreciation

With new car prices still high, leasing can be a great way to avoid steep depreciation. Automakers are offering some of the best lease deals in years, with many lease deals available for under $300/month. EVs and plug-in hybrids are especially affordable right now.
Depreciation has returned to historic norms in 2025. This is good news for used car buyers looking to snag a deal on a lightly-used vehicle, but bad news for new car buyers. It’s common for a new car to lose over 30% of its value in the first two years of ownership.
Leasing offers protection from depreciation, since you simply return the vehicle at the end of the contract. Negative equity is a growing problem in 2025, with thousands of drivers unable to sell their vehicles due to underwater loans. For those who prefer the latest and greatest vehicle every few years, it’s worth looking into.
📌 Tip: Check out our Guide to Negotiating a Lease Deal
Final Thoughts: How to Get the Best Deal This President’s Day
Car dealerships will be advertising big discounts this February, but not every deal is worth taking. With high new car prices, rising incentives, and falling used car values, being an informed buyer is more important than ever. This Free Car Buying Guide is a must-have!
To summarize, here’s what car shoppers should be mindful when shopping President’s Day car sales in 2025:
✔ Check manufacturer incentives and financing offers before heading to the dealership.
✔ Use behind-the-scenes tools like CarEdge Insights to see if a vehicle is truly a good deal.
✔ Always negotiate the out-the-door price, not just the monthly payment.
✔ Consider leasing if you don’t plan on keeping your car long-term. Lease deals ARE negotiable.
✔ For used cars, negotiate based on market supply and how long cars have been sitting on the lot. Tax refund car buyers will drive up demand very soon!
🚗 Get your FREE car buying guide today, and save more while stressing less!
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