Car Buying in Spring 2025: What to Expect and Strategies to Get You the Best Deal

If you’re in the market for a vehicle in April 2025, you’re likely bracing for newly enacted auto tariffs and existing duties on steel and aluminum to impact prices and availability of both new and pre-owned cars and trucks. Given our experience during the pandemic when record-low inventory levels led to long-standing price increases, it could be said that we’ve already had a practice run on how to deal with disruption in the auto industry.

An April 4 report from Reuters advised that prices have been holding steady for now, but that economists are warning of auto industry price hikes beginning in June if tariffs remain in place. On the other hand, MarketWatch has projected that prices may undergo constant shifts over the next few months, although they do not necessarily predict a steady rise in vehicle price trends over spring 2025. In the meantime, automakers eager to shore up loyalty from anxious customers amid any potential sticker-shock that could be coming in the months ahead have been offering some valuable vehicle promotions, from cash incentives to employee pricing for buyers.

While it may be impossible to predict exactly what the fallout from auto tariffs will be and how long they will remain, we’re shedding light on some of the most salient insights from analysts and industry experts to help you navigate any turbulence ahead — along with tips on how to get a great deal on your next vehicle despite whatever market conditions may hold:

Don’t dismiss a foreign-branded vehicle out of hand or assume that prices will be lower on an American-made car until you comparison shop.

On the face of it, it may seem that the rational response for those searching for a new vehicle in spring 2025 would be to start shopping for an American-made car now that the Administration has set tariffs of 25% on imports of passenger vehicles and light trucks assembled outside the U.S. While foregoing a car shipped to the U.S. in favor of an American-assembled vehicle might net you savings if tariffs are sustained, experts caution against taking an oversimplified approach to imported versus domestic-made cars. To stay clear-headed and informed, make sure you are working from these sets of facts:

1.) Plenty of vehicles with foreign-sounding names are actually made on U.S. soil.

If you’re a car enthusiast you undoubtedly know this, but others of us are perhaps less attuned to the reality that many foreign-branded vehicles are assembled here in the U.S. rather than their company of origin. For instance, Volkswagen produces the Atlas and Passat model for the U.S. market from their Chattanooga Plant in Tennessee. And while Toyota is headquartered in Japan and has manufacturing facilities worldwide, more than 70 percent of their cars sold to U.S. consumers are built in North America. Notably, Toyota’s luxury Lexus division includes several U.S.-made vehicles from plants in Kentucky and Indiana.  Find a list of “10 Foreign Cars That Are Actually Made in America” at SlashGear.

2.)  When it comes to what constitutes an American-made car, it’s all relative.

While some automakers and vehicle models have more exposure than others to imported parts, all cars assembled in the U.S. these days have at least some components sourced outside the country. Approximately 54 percent of new vehicles sold were produced in U.S. factories in 2024. But an analysis by USA Today found that only 47% of parts used to build domestic cars originated in the U.S. or Canada.

As MarketWatch points out, the Commerce department is wrangling with how to apply tariffs to the “non-U.S. content” (i.e., parts) of vehicles that qualify for preferential treatment under new trade agreements. Therefore, automakers are currently in limbo in terms of what the tariff will be on any vehicle assembled in the U.S. In the meantime, economists expect that some automakers will scale down production until the situation is resolved — which would reduce the supply of new vehicles in the country. With less available inventory, increased demand would put an upward pressure on new vehicles and used cars alike in the upcoming months. However, uncertainty regarding the longevity of tariffs on vehicles and parts could mean a pivot at any point in the near term.

3.) We don’t yet have clarity on how automakers and dealerships will set prices in a post-tariff economy.

While some experts are predicting that tariffs could raise the average price of a vehicle in the U.S. by up to $5,000, they also caution against purchasing out of panic or making assumptions. It’s uncertain what cost increases will be absorbed by automakers and dealer groups versus what production costs will get handed down to consumers. In addition, while dealerships may decide to adjust prices on certain models, it’s also plausible that they will spread cost increases among their entire vehicle inventory — not just their imports. The bottom line is that you should continue to do your own research on cars and pricing regardless of auto-specific tariffs, as you would in any economic climate. Plenty of websites make it easy to browse and compare vehicles for sale online, such as Autotrader, CarsDirect, Edmunds.com, TrueCar, Kelley Blue Book, and CarMax.

How to Hack Car Buying in Spring 2025:

Get your credit in the best possible shape so you can qualify for better auto loan rates and terms.

Unless you’re planning to make an all-cash upfront payment on your next car, favorable financing is a critical consideration affecting both the affordability of a vehicle and your ability to get the most value for your money. A higher annual percentage rate (APR) will add substantially to your vehicle costs, impacting both your monthly payment and the total amount you pay in financing charges and fees. Because even a small percentage point difference can mean thousands of dollars saved or lost, it can pay to focus on improving your credit health before you apply for a car loan.

You can get a free credit report each year from the three major national credit reporting agencies at AnnualCreditReport.com. Be sure to dispute errors you find and take any other necessary steps to boost your credit score, such as paying down debts and making timely payments. In the months before you apply for an auto loan, it’s also best to avoid taking out other loans or opening a new line of credit.

Factor in that you’ll probably pay a higher interest rate for a used car versus a new one.

Buying a pre-owned vehicle can enable you to get a more luxurious car for less money, and save on insurance premiums, taxes, and registration. You can also avoid a steep hit in appreciation which can erode the value of a new car by more than 20 percent in the first 12 months of ownership. But depending on your needs, it may be worth considering the advantages that a new vehicle offers as well. Along with a more comprehensive warranty, a new vehicle usually comes with a lower annual percentage rate (APR). Potentially, you could spend less money to purchase a new car versus a comparable used model due to higher interest rates and fees.

Consider buying the previous year’s model for serious savings on a new car.

Dealerships often increase discounts and incentives on vehicles from the current year as they clear space for next year’s models. What’s more, these discounts often apply even if the vehicle isn’t redesigned or significantly changed. New models for the upcoming year may debut as early as March of the current calendar year or they may be introduced several months later. This can be an excellent opportunity to take advantage of special offers on an outgoing year model such as cash rebates, limited-time lease deals, and low-interest loans. 

While an inventory shortage could be on the horizon later in the year, CarEdge asserts that the supply of new cars is still rising in April 2025 after years of the lows we experienced during the pandemic. As Reuters tells us, both Ford and Chrysler’s parent company Stellantis are offering employee-discount pricing to the general public as well as other limited-time deals like cash incentives on many of their outgoing year models. For example, Stellantis has offered buyers the choice of accepting existing cash incentives or employee pricing on most 2024 and 2025 vehicles from their brands including Chrysler, Dodge, Jeep, and Ram for the month of April. Find “Pros and cons of outgoing car model vs. redesign” at Edmunds.com.

Get vehicle financing lined up before negotiating with a seller.

You’ll give yourself several key advantages by securing pre-approval on an auto loan before you set foot in a dealership. First, you can shop with confidence and reduce stress in the car buying process because you’ll have an estimate of the loan size and monthly payment you can comfortably afford. Secondly, you’ll negotiate all aspects of the sale with more clarity and leverage by obtaining offers ahead of time. To this point, economists are cautioning that dealerships may build the cost of tariffs into higher interest rates as a strategy to defray expenses without hiking up the listed prices on vehicles. Without a preapproved car loan, the dealership’s financing arm will be less incentivized to make you a competitive offer.

Working directly with a lender can also give you the opportunity to address questions or issues that could be critical to obtaining the best possible APR for significant savings on your loan. Along with a lower-cost loan, financial institutions like The Police Credit Union may also be able to provide a bit more flexibility than other lenders when approving your offer. As you shop for an auto loan, just be sure to confine your applications to a short timeframe (14 days is a safe window), so that multiple hard inquiries on your credit report are treated as only one in terms of impact to your score.

>How to avoid the spring 2025 rush at the dealership and still take advantage of special offerings on the car you want:

Finally, if you’re eager to avail yourself of the discounts and limited-time deals on cars in spring 2025 but don’t want to face the crowds or haggle over prices, The Police Credit Union’s Auto Buying Service can offer the convenience and expertise you need. Our no-cost concierge for car purchases in California will locate the make and model of the vehicle you want, negotiate deals, facilitate the trade-in process, and even deliver your new ride to your home. Just complete our request form to tell us your specifications, and we’ll get right to work!

Whether you're looking to purchase your next new or used vehicle, or lower your existing payments, we are here to help!

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