In 2025, for any car buyer, the high prices of new cars are still a well-known fact. What will be the trend of car prices as we step into the new year? According to financial websites, if you are considering purchasing a reliable vehicle, it might be beneficial to wait a bit longer as the timing could be more favorable.
Over the past five years, new car prices have surged by 27%. Will car prices decrease in 2025? Ray Shefska, co-founder of CarEdge with forty years of industry experience, mentioned that by the end of 2025, as car manufacturers increase efforts to clear out inventory due to consumer resistance, new car prices are expected to gradually decrease by about 3-5%.
Shefska also indicated that in 2024, the market share of electric vehicles (EVs) in the new car sales in the United States has been around 7-9%. By 2025, it is projected that the sales of electric vehicles will continue to grow slowly but steadily. Currently, there are 57 electric car models available in the U.S., and by mid-2025, this number is expected to exceed 70.
Gobankingrate, a financial website, believes that with the introduction of new car models, the increase in electric vehicles (EVs), and the rise in inventory, the prices of some popular car models may significantly drop in 2025. So, potential car buyers might want to hold off on making a purchase for now.
Among the cars listed by the website as expected to see significant price drops in 2025 are the following five models:
1. Toyota Camry, known for its longevity, low maintenance costs, and consistent ranking at the top of reliability charts in the sedan category.
Toyota has announced that the next-generation Camry will only be offered as a hybrid, marking it as the company’s boldest move yet. This could potentially make the older Camry models more affordable. Despite the latest version being equipped with advanced technology, safety features, and stylish designs, the older models are likely to offer outstanding reliability at more budget-friendly prices.
Furthermore, due to the shift towards SUVs and the increasing market share of electric vehicles, the demand for traditional sedans like the older Camry models may decrease, leading to price reductions.
2. As more car manufacturers introduce economical electric vehicles, some existing models will become more affordable. The Ford Mustang Mach-E, initially popular upon its release, might see a price decrease in 2025.
In early 2024, Ford had already reduced the price of this model following a decline in sales. With Ford and other automakers introducing a new wave of budget-friendly electric cars, the older models need to remain competitively priced to maintain their appeal. Hence, popular models like the Mach-E could become more budget-friendly.
3. The Chevrolet Bolt was one of the first economy electric vehicles to enter the market and might also see a significant price drop in 2025.
As competitors like Tesla, Hyundai, and Kia introduce more budget-friendly electric vehicle options, the older models of the Bolt will need to decrease in price to stay competitive.
For those looking to purchase an electric vehicle without splurging on the latest models, the Bolt could be a great choice. The 2022 and 2023 models might offer excellent value when they begin to enter the used car market.
4. Another electric car that might experience a price drop in 2025 is the Nissan Leaf, for similar reasons as the Bolt.
5. The Kia Forte, known for being an economical, reliable sedan, has carved out a niche market for itself.
In 2025, with Kia introducing new designs and features in the latest versions, GOBankingRates predicts that the prices of the 2022 to 2024 models will decrease, with the 2024 model already making it to the Kelley Blue Book 2024-2025 list of the cheapest cars.