Buying a Car in 2025?
Remember when buying a new car meant walking into a dealership, haggling with a guy named Chad who smelled faintly of Axe body spray, and driving off with that fresh new car smell? Yeah. Those days are gone.
Now? That same Chad wants $15,000 over the price in exchange for a base model with roll-up windows.
So why have so many of us decided to stick with our 10+ year-old cars that squeak a little when you turn left? Because, my friend, the car market in 2025 is a financial dumpster fire. But it’s not your fault — it’s economics, politics, and yes, stimulus check-induced poor decisions.
Our Shop Foreman; Ryan, showed us a phenomenal Youtube video by Humphrey Yang, who breaks down why The Car Market is Bankrupting Americans (which we highly recommend you check it out)! Humphrey focuses on 5 main points behind the current automotive market, so let’s get into them!
1. Dealer Markups: The Highway Robbery You Can't Escape
If you’ve been car shopping lately and thought, “Did I just hallucinate that price tag?” — you didn’t. Dealerships have entered their villain era, slapping on markups like they’re seasoning a bland chicken breast.
Want a Toyota Corolla? That’ll be $40,000. Oh, and don’t forget the “We Can Because You’ll Pay It” fee.
2. Financing Problems–Population: All of Us
America is currently swimming in $1.7 trillion of auto loan debt. Back in 2021, standards for auto loans dropped faster than your confidence remembering someone's name after being introduced 3 seconds ago. Combine that with pandemic-era stimulus checks and boom: people took out massive loans for cars they could barely afford.
Now, the average car payment is $742/month, and interest rates went from “kinda bad” (1-3%) to “you-might-as-well-finance-a-yacht” levels (6-11%). Oh, and people are upside down on their loans by an average of $6,838 — which means they owe way more than their car is even worth.
Compare it to financing a banana that starts rotting the second you leave the grocery store.
3. Elevated Inventory
I’ll keep this one short—Here’s a fun stat: since 2023, the inventory of unsold cars has jumped 120%. There are 3 million cars just sitting on U.S. dealer lots, gathering dust and existential dread. Enough said? Let’s keep going.
4. Industry Panic: When Even Nissan Is Sweating
When the car companies start panicking, you know it’s real. Thousands of layoffs, production cuts, and nervous execs wondering if TikTok influencers can save them. Nissan is basically the canary in the coal mine here, and the canary is coughing.
Manufacturers overestimated how much people would want a new car when faced with $5 gas, crushing interest, and a $742 monthly payment. Who knew?
5. Trump’s 2025 Tariffs: Import Tax Madness
Forty-five percent of all light vehicles sold in the U.S. are imported. And guess what’s back on the table? Big fat tariffs. If you thought car prices were high now, just wait till 2025 when imports get slapped with new taxes and we’re all fighting over who gets grandma’s 1998 S70.
This is all on top of the production cuts and semiconductor shortages that already jacked up prices back in 2020.
So, Why Are People Fixing Up Old Cars Instead?
Simple. Your old car may be held together by duct tape and sheer willpower — but it’s paid off. And right now, that’s sexier than anything on four wheels at the dealership.
A new car might cost you $742 a month and your peace of mind. Meanwhile, fixing your current car for $1,000 here and there? Suddenly it feels like a bargain.
We’ve officially entered the “Hot Rod Grandma” era — where maintaining your 2005 3-Series makes you financially savvy, and showing off a new car is more likely to get you side-eyed than admired.
Let’s Talk Numbers: The Real Cost of Keeping vs. Buying
According to AAA, the average American spends between $800 and $1,200 per year on car maintenance.
But here at Joe Davis Autosport, where we specialize in European vehicles, we see a slightly different reality: $1,000 to $2,000 per year is a more accurate range for maintaining European makes like Mercedes, Audi, and BMW. A Mercedes part, for example, will almost always cost more than a Toyota’s — and that's expected.
But let’s break that down:
Even at the high end — $2,000 a year — that’s $167 a month. Now compare that to the average new car payment in 2025: $742/month.
That's a difference of $575 a month, or $6,900 per year. Let that sink in: You could be saving nearly seven grand a year just by taking care of the car you already own.
So before you trade in your reliable ride for a new payment plan and a complimentary panic attack, remember: Maintenance is an investment. Car payments are a drain.
In Conclusion: The Road Ahead Looks… Bumpy
Between industry chaos, absurd financing, and tariffs looming like a bad sequel, car prices today are giving “mortgage energy.”
Look, if you’re rolling around in your grandfather’s hand-me-down Volvo or you’ve got a 2010 E350 that’s been a little "temperamental" lately — this is the time to invest in what you have.
At Joe Davis Autosport, we specialize in European cars and repairs. It’s kind of our thing. Actually, it’s been our thing for 35 years — which means we’ve seen firsthand what happens when you give your car the TLC it deserves. (Spoiler: it lasts. A long time.)
Routine maintenance = longevity. It’s that simple. Whether it’s keeping your current ride humming for another 100,000 miles or tackling those "yeah, I’ve been meaning to get that looked at" issues, we’re here to help — without judgment, pressure, or sales pitches.
Save yourself the heartbreak of 8% interest rates and a $900/month car payment. Put that money into what you already own.
We’ll make sure your car is safe, reliable, and still cooler than anything Chad is trying to sell.