New Car Prices Predicted to Remain High in 2025: Is Buying New Better Than Used?

Are you in the market for a new car in 2025? While prices for both new and used cars are expected to remain high, there are several factors that may make buying a new car a better option this year. According to a report from Cars.com, there are some compelling reasons to consider purchasing a new car over a used one.

One of the key factors favoring the new car market is the expected shortage of used cars. David Greene, principal analyst at Cars.com, predicts that used car buyers may struggle to find affordable options in 2025. With fewer sales and leases over the past five years, there is now a smaller pool of late-model used cars available, driving up prices and limiting choices. On average, the used cars on the market are nearly a year older and have 4,300 more miles on them than those available five years ago.

Additionally, new cars are becoming more affordable in 2025. While they are still expensive, prices have leveled off around $49,000, down from a peak of $50,300 in June 2023. Automakers are also offering solid incentives to sweeten the deal, and the inventory of new cars under $30,000 has increased by 42% year-over-year in November. This gives budget-conscious buyers more options to choose from.

Given these trends, Greene recommends that car buyers consider opting for new vehicles this year. With more affordable new cars hitting the market and the potential for trade-in value, choosing new might be the smarter move for shoppers looking to get the most bang for their buck in 2025.

So if you’re in the market for a new car this year, it might be worth considering buying new over used. With fewer used cars available and more affordable options in the new car market, 2025 could be the year to make the switch.