New Car Prices Predicted to Remain High in 2025: Is Buying New a Better Bet?

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 some compelling reasons why buying a new car might be the better choice this year.

According to a report from Cars.com, there are several factors favoring the new car market in 2025. One key reason is that fewer used cars will be available, which will drive up prices for pre-owned vehicles. David Greene, principal analyst at Cars.com, explains that due to fewer sales and leases over the past five years, there is now a smaller pool of late-model used cars on the market. This scarcity is leading to higher prices and limited choices for used car buyers.

On the other hand, new cars are becoming more affordable in 2025. Greene notes that while new cars are still expensive, prices have leveled off and automakers are offering solid incentives to buyers. Additionally, the inventory of new cars priced under $30,000 has increased significantly, giving budget-conscious shoppers more options to choose from.

Given these trends, Greene recommends that car buyers consider purchasing a new vehicle this year. With more affordable new cars hitting the market and the potential for trade-in value down the line, buying new could be the smarter move for those looking to maximize their investment.

So if you’re in the market for a new car in 2025, it might be worth considering the benefits of buying new over used. With prices for pre-owned vehicles on the rise and more affordable options available in the new car market, now could be the perfect time to make the switch to a brand-new ride.