Is it a good idea to buy a new car now?

It can be—if you can secure a below‑MSRP, out‑the‑door price and a sustainable payment on a model with ample inventory and incentives; however, if you’re payment‑sensitive, shopping for in‑demand hybrids, or hoping for lower financing costs, waiting and preparing your financing could yield a better total cost. In today’s market, incentives have returned unevenly, loan rates remain higher than the 2010s average, and insurance costs are elevated, so the right move depends on your model choice, credit profile, trade‑in position, and timing.

The market right now

New‑vehicle supply has largely normalized compared with the pandemic era, pushing discounts and incentives higher on many models, especially full‑size pickups, large SUVs, and several mainstream EVs. Average transaction prices have edged down from their peak but remain above pre‑2020 norms, and destination fees and add‑ons can still inflate the bottom line if you’re not vigilant. Financing costs are elevated versus the last decade, though manufacturer‑subsidized APRs and cash rebates are more common than during the supply crunch. Insurance premiums and repair costs have climbed in recent years, so the monthly “all‑in” cost often surprises buyers. Meanwhile, hybrids and some popular small SUVs may still carry wait times or light discounts, while trucks and certain EVs are relatively deal‑rich.

Who should consider buying now

These buyer profiles are more likely to benefit from today’s mix of incentives, inventory, and pricing dynamics. If you see yourself in several of these, it strengthens the case to proceed now rather than wait.

• You’ve found multiple dealers offering below‑MSRP, out‑the‑door quotes on the exact trim you want.
• You qualify for strong manufacturer financing (or have a preapproved low APR) that keeps payment‑to‑take‑home pay around 10–15%.
• You’re targeting segments with healthy inventory—full‑size pickups, many midsize/large SUVs, and several EVs where cash rebates are common.
• Your current car needs costly repairs soon, or you’re spending heavily on rentals/rideshares due to unreliability.
• You can stack incentives (loyalty, conquest, military/college, state/utility rebates, and, for eligible EVs, the federal point‑of‑sale tax credit).
• You’re flexible on colors/trims and can switch to in‑stock units to capture deeper discounts.

If these conditions describe your situation, the math often favors buying now—particularly if you lock a competitive rate, avoid dealer add‑ons, and secure a price advantage on readily available models.

Who might be better off waiting

On the other hand, some shoppers are positioned to save by pausing—either for better financing, model‑year transitions, or improved supply on specific vehicles.

• You’re focused on high‑demand hybrids/subcompacts with thin inventory and minimal incentives.
• Your credit score is on the cusp of a better tier; a few months of on‑time payments and lower balances could meaningfully reduce APR.
• You’re upside‑down on your trade and need time to build equity or sell private‑party for a higher price.
• You can comfortably keep your current car for 6–12 months while monitoring incentives and model‑year changeover discounts.
• You’re waiting for a refreshed model or safety/tech update that materially improves value or resale.

If several of these apply, patience—paired with rate shopping and broader dealer outreach—can shrink your total cost of ownership.

EVs and hybrids: special factors

Electrified models come with unique supply, incentive, and ownership considerations. Incentives and resale trends vary widely by model, so do a focused evaluation if you’re shopping green.

• Federal EV tax credit: Many qualifying EVs can apply up to $7,500 at the point of sale; eligibility depends on income limits and battery sourcing. Check the IRS’s current list before you shop, and layer in any state/utility rebates.
• Hybrid dynamics: Non‑plug‑in hybrids remain hot in many regions, with limited discounts; plug‑in hybrids (PHEVs) may offer a middle ground if you want electric commuting without full charging dependence.
• Pricing patterns: Some EVs see aggressive cash rebates or lease subventions; hybrids often carry smaller incentives but retain value well.
• Charging and costs: Factor home charger installation, electricity rates, and public charging access. Many dealers/utilities offer home‑charging credits or discounted rates.
• Resale and warranty: Review battery warranties (often 8–10 years) and expected depreciation; model reputation and software update support matter.

Because incentives and supply shift frequently, confirm eligibility and local deal conditions just before purchase; the best bargains often appear on EVs with strong supply or during end‑of‑quarter pushes.

Financing, incentives, and the real monthly cost

In today’s environment, the headline price tells only part of the story. The winning move is to optimize the mix of APR, rebates, fees, and insurance before you step into the showroom.

• Get at least two credit‑union or online‑bank preapprovals; bring them to the dealership to be matched or beaten.
• Run the math on “low APR vs cash rebate” with the exact term you need; the cheaper option depends on your loan size and credit tier.
• Avoid stretching beyond 60–72 months; very long terms lower payments but raise interest paid and negative‑equity risk.
• Request itemized, out‑the‑door quotes from multiple dealers; watch for add‑ons (VIN etch, nitrogen, paint sealant) and doc fees.
• Get an insurance quote on the specific VIN before signing; premiums have risen and can change the affordability picture.
• If trading in, solicit instant‑offer bids (online buyers, local dealers) to set a competitive floor under your trade value.

Optimizing these levers often saves more than haggling another $300 off the sticker; the total cost of financing, fees, and insurance is where many buyers win or lose.

Timing tips

While “the best time to buy” isn’t a single date, certain windows tend to deliver better leverage and selection.

• End of month/quarter/year: Sales targets can trigger extra dealer flexibility and manufacturer stair‑step bonuses.
• Model‑year changeover: When next‑year models arrive, outgoing inventory usually discounts—especially on trims/colors with slower turn.
• Holiday sales events: Memorial Day, Labor Day, Black Friday, and year‑end often pair higher incentives with broader advertising.
• Cast a wide net: Price shop beyond your metro; a short drive can mean thousands saved on high‑supply models.
• Factory order vs in‑stock: Ordering can reduce add‑ons and secure exact specs, but in‑stock units may have better incentives.

Targeting these periods and widening your dealership search typically matters more than haggling style alone.

Negotiation and purchase checklist

Approach the transaction like a project: separate each component, document it, and only then make a decision. This reduces surprises and keeps leverage on your side.

1. Confirm inventory and VINs; request written, itemized out‑the‑door quotes from at least three dealers.
2. Secure preapproved financing; ask the dealer to beat your APR or offer a rebate alternative.
3. Decide in advance which add‑ons (if any) you’ll accept; decline everything else.
4. Bring competing trade‑in offers; negotiate the car price and trade value separately.
5. Test the exact vehicle you’ll buy; verify options, mileage, and any dealer‑installed items.
6. Before signing, recheck the buyer’s order line by line; verify incentives, fees, and that no products were added.

A disciplined process turns an emotional purchase into a controlled, data‑driven decision—usually at a better price.

Alternatives to buying new

If the numbers don’t pencil out, nearby options can deliver most of the value with lower risk or cost.

• Certified pre‑owned (CPO): Adds warranty coverage and inspection, often at a steep discount to new.
• Leasing: Smaller monthly outlay and access to manufacturer lease cash; mind mileage limits and disposition fees.
• Keep your current car: Invest in maintenance and set aside a repair fund; this often beats taking on a high‑APR loan.
• Nearly new off‑lease: One‑ to three‑year‑old models may offer modern tech with lower depreciation hit.

Each path has trade‑offs; model reliability, warranty coverage, and your driving patterns should drive the choice.

Bottom line

Buying a new car now can be a smart move if you target models with strong supply, secure competitive financing, and keep your payment within a safe slice of income. If you’re chasing scarce hybrids, carrying negative equity, or hoping for better financing, waiting—while gathering preapprovals and broader quotes—may save more. Run the full out‑the‑door and monthly ownership math first; let that, not the showroom, decide your timing.

Summary

Yes, it can be a good idea to buy now—particularly for trucks, many SUVs, and select EVs with improved incentives—provided you lock a below‑MSRP price, competitive APR, and manageable total monthly cost. If your target is a high‑demand hybrid, your credit is about to improve, or your trade is underwater, patience and preparation could deliver a better deal. Focus on out‑the‑door quotes, preapproved financing, insurance costs, and timing around month‑/model‑year ends to maximize value.

Is it smart to buy a new car right now?

“Waiting will only make buying more difficult as we’re already seeing a downward trajectory of new car inventory, which will result in lower discounts.” If you’re in the market for a new car today, there’s one possible benefit to rising new car prices: The average transaction price of used vehicles is rising as well.

Should I buy a car now or wait until 2026?

You should strongly consider buying a car by the end of 2025, specifically during the late November through December sales period, to potentially access the best deals and take advantage of expiring Federal EV tax credits before September 30, 2025. While 2026 new models will introduce price increases, waiting until next year will likely result in higher costs, though you might find some year-end deals on remaining 2025 inventory now. 
Reasons to Buy in Late 2025

• Federal EV Tax Credits Expire: Opens in new tabThe federal tax credits for both new and used electric vehicles end on September 30, 2025. 
• Year-End Sales: Opens in new tabThe best new car deals are typically found during the year-end sales period from late November through December, with high discounts from MSRP. 
• Inventory & Incentives: Opens in new tabDealerships want to sell remaining 2025 inventory to make space for new models, potentially leading to discounts and incentivized interest rates. 

Reasons to Potentially Wait

• New 2026 Models: Opens in new tabNew 2026 models are starting to arrive in showrooms, and their price increases will become more prevalent as they enter the market. 
• High Car Prices & Interest Rates: Opens in new tabSome sources suggest delaying your purchase to wait for interest rates to potentially stabilize or fall, which could make financing more affordable. 

What to Do Now

• Shop 2025 Models: Look for deals on remaining 2025 models as 2026 vehicles are released. 
• Research & Expand: Research your options and be open to different vehicles to find potential deals. 
• Consider Your Needs: If your current car is still functioning, you can hold out for better deals, but be prepared for potential breakdowns. 

What is the cheapest month to buy a new car?

The best time to buy a new car for a cheaper price is generally at the end of the year, from October through December, and in the post-holiday winter months of January and February. During these times, dealers are motivated to meet year-end quotas, clear out the previous year’s models to make room for new ones, and offer significant discounts, rebates, and incentives to attract buyers during slower sales periods. 
Why late in the year is best

• Year-end quotas: Opens in new tabDealerships and salespeople work to meet monthly, quarterly, and yearly sales targets, making them more willing to negotiate a strong price to secure a sale before the year ends. 
• Model year clearance: Opens in new tabAutomakers often release new models in the fall, so dealers want to clear out the remaining inventory of the current model year to make space for the newest versions. 
• Manufacturer incentives: Opens in new tabThis is a peak time for special offers, cash-back deals, and other incentives from manufacturers designed to boost sales. 

Winter months for even better deals 

• Slowest sales periods: After the holiday rush, January and February often see a slowdown in car buying, giving you more leverage to negotiate with dealers who are eager to stimulate business.
• Less competition: Fewer buyers in the dealership mean sales staff may have more time to dedicate to you and be more open to making concessions to secure a sale.

Tips for finding the cheapest month

• Be flexible: If you’re open to different colors or options, you may be able to get a stronger discount by choosing a car that the dealership needs to move. 
• Research new model releases: Find out when the new model year for your desired car will be released and then target the months leading up to that to get the best deal on the outgoing model.