Buy a new car in 2025? Why it might be a smart move

If you’re in the market for a vehicle, you have to wonder, should you buy a new car in 2025? Or is it better to save a few dollars upfront buying a previously owned vehicle? There’s little doubt, car prices after tariffs will be higher. Still, you may not want to dismiss the question of a new vs. used car in 2025 just yet.

What’s with the fluctuating car market?

Car dealerships have seen their share of issues in recent years. First, available inventory was low. As in, empty sales lots low. Since the semiconductor shortage, manufacturers have struggled to keep up with demand. Now, the back and forth tariff threats certainly aren’t easing anyone’s mind.

So shopping for a new car now? Are you crazy? Instinctively, buying a new car in 2025 may not make sense. But when you consider factors other than initial cost, it may be a better long-term investment.

A 25% tariff on foreign-made autos and parts went into effect in April 2025.

The tariff effect — but it’s not everything

In April 2025, a 25% (or higher) tariff on imports and foreign-made parts was imposed, prompting experts to suggest major price increases are ahead. If you’ve been looking to buy a new import, those steep tariffs could make a sizable price difference. However, automakers and their suppliers may be willing to absorb some of that cost. 

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Why buying new vs. used in 2025 makes sense

Before panicking and thinking you’ll never be able to afford a new car now, remember this: Not all brands are impacted equally.

Deals for domestic car sales

Manufacturers will need to keep business moving after the tariff-free inventory is sold out. Look for incentives to possibly save hundreds to thousands of dollars on your new car purchase. 

For example, Ford and Stellantis have responded to the tariff news by offering employee pricing deals to incentivize buyers. General Motors, meanwhile, has increased production in some of its U.S. plants to meet anticipated demand. 

You may get a tax credit when you purchase a new EV, helping to offset the cost.

EVs get a tax credit

If you’ve considering jumping on the electric vehicle bandwagon, here’s even more motivation: You may receive a tax credit. The U.S. Department of Energy allows a credit of up to $7,500 for eligible vehicles. There’s also an available $1,000 tax credit for a home charger to keep your vehicle running.

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New vehicles come with warranties

While the price of vehicles may go up, so will the price of the parts to fix them. However, when you buy a new car in 2025, you’re less likely to need replacement parts for several years.

If you do need repair work done sooner rather than later, your new vehicle may still be under warranty. Most brands offer a minimum 3-year/36,000 mile warranty on new vehicles, whereas most used cars are sold as-is.

In addition, many dealerships in Utah offer in-house incentives such as a year of free oil changes and tire rotations.  

Lower interest rates on new cars

When you purchase new, you may get a better interest rate. In 2024, new vehicle loans averaged around 6% compared to 11% for previously owned.

Dealerships work with lenders to offer better financing on new vehicles. A lower interest rate means smaller monthly payments and a lower overall cost for your new car or truck.

New vehicles come with all the tech and safety features you could ever want.

Tech and safety

Technology no longer refers to basics such as cruise control, powered windows and a nice stereo system. The newest vehicles have all the features you could possibly want or need to make your driving experience comfortable and safer. 

• Adaptive cruise control: Keeps your vehicle a safe following distance from others.

• Lane-keeping assist: Stay in your lane.

• Lane departure warning: Reminder to stay in your lane.

• Blind spot warning: Be aware of cars in your blind spot.

• Parking assist: Parallel park on the first try.

• Backup and surround-view cameras: See what’s behind and beside you.

• Apple CarPlay and Android Auto: Listen to your own media wherever you’re driving.

Newer vehicles maximize on space, giving passengers more wiggle room on your long road trips.

New vehicles are more reliable overall

Utahns are in their cars a lot. You drop the kids off at school, pick them up and then head to soccer practice or dance class. On the weekends, there are games, birthday parties and family gatherings.

For spring break and summer road trips, you drive to national and mouse-themed parks. You need plenty of space for all your luggage, snacks and “they’re touching me” room. Newer vehicles maximize interior space, giving you more room without feeling like you’re driving a boat down I-15.

For all that driving, you also need a vehicle that’s reliable — no one wants to be stranded in the middle of Nevada. Newer vehicles have better gas mileage, too, so you can afford lunch at your destinations.

Check out local inventory on KSL Cars, where you can use filters such as make, model and price, as well as specifics such as number of doors and seatbelts.

Buying new may not cost you much more than used over the long run.

Used cars aren’t always cheaper

Utah car buying has changed in recent years. The shortage of vehicles made the price of used vehicles jump dramatically. It’s much harder nowadays to find a trouble-free used vehicle for less than $5,000, or even $10,000.

Factoring in current prices, financing costs and potential repairs, financially it may make more sense to buy new. And with the new tech that makes driving so much easier — and fun! — buying a new vehicle in 2025 can be a smart purchase.

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