As 2025 approaches, the car market is navigating through challenging times, with affordability concerns at the forefront.
Analysts from Edmunds, an online resource for automotive inventory and information, highlight that these challenges could significantly impact the market in the coming year.
However, the period from Dec. 26 to 31 is often seen as the optimal time for purchasing a car, offering potential buyers a chance to secure great deals.
During the final days of December, dealerships are eager to meet their end-of-year sales targets. This urgency leads to aggressive pricing strategies as they aim to clear out the current year’s inventory and make room for new models.
As a result, consumers can find discounts on new cars, with some deals reaching up to 30% off locally.
“Silverado, you can get up to $13,000 off with the Nimnicht savings as well,” Lionel Lawrence, the Nimnicht Chevrolet Sales Director, told News4JAX.
“At our Acura dealership on Blanding, you can take over $20,000 off MSRP of $68,000 so essentially, it’s 30% off a brand-new vehicle on a lease, which is unheard of,” Jack Hanania Jr., Vice President of Hanania Auto Group, added.
Despite enticing manufacturer incentives and low annual percentage rates (APRs), new car prices remain significantly higher than in previous years. According to Edmunds, new car prices are still 27% higher than they were in 2019.
In 2024, the average transaction price for new cars exceeded $47,000, while used cars averaged over $27,000. This makes end-of-year sales an attractive opportunity for buyers.
“Definitely take advantage of the manufacturers' incentives right now, because they’re really, really good, and also of the low APR,” Lawrence said. “I mean, it doesn’t matter what it is. I mean, we’re still dealing with even credit unions that may be offering six, 7%, and manufacturers and incentives are zero, 1.9 2.9 3.9 and that’s really hard to get.”
In 2024, new vehicle APRs averaged 7.1%, with used vehicle rates reaching 11.4%. However, many local dealers are offering APRs as low as 0% for qualified buyers, providing an opportunity for affordable monthly payments on new cars.
Looking ahead, Edmunds analysts caution that proposed tariffs by the new administration could lead to increased vehicle prices as automakers pass these costs onto consumers. Additionally, the electric vehicle (EV) market may face turbulence if federal EV tax credits are eliminated, creating uncertainty for potential buyers.
“There’s a huge push on electric vehicles with the new administration change, there’s a lot of uncertainty whether or not the $7,500 tax credit will be available,” Hanania Jr. said. “So, it’s pushing a lot of electric vehicle leases right now.”
For those considering a car purchase, the advice is clear: act before the end of the year.
This week is considered the best time to buy a vehicle, offering significant savings and incentives for savvy shoppers.