From Yahoo Finance: 2025-05-11 13:02:00

With new and forthcoming tariffs on foreign trading partners potentially affecting the costs of car manufacturing and gas prices, buying a new car in 2025 may bring added stress. However, ChatGPT suggests considering buying a used car due to lower initial costs, reduced depreciation, lower insurance costs, and increased availability.

Used cars are significantly cheaper than new vehicles and help avoid steep depreciation, potentially saving hundreds on insurance premiums. The post-pandemic supply chain stabilization in 2025 makes used cars more abundant and affordable. Consider factors like interest rates, reliability, maintenance costs, and fuel efficiency when deciding between new and used cars.

Tariffs are projected to increase the cost of cars, with major companies like General Motors expecting billions in added costs. New car prices are rising due to tariffs, pushing buyers toward the used car market. However, the increased demand for used cars may lead to higher prices, but they still offer better value compared to new cars affected by tariffs.

Buying a used car in 2025 may be the better financial choice, considering factors like ongoing maintenance costs and wise financing. Each individual should weigh their financial situation and goals to make the best decision for their personal finances. Ultimately, the choice between new and used cars depends on individual preferences and needs.

Read more: I Asked ChatGPT Whether or Not I Should Buy a Used Car in 2025, Here’s What It Said