As dealer lots fill up with unsold inventory, pressure mounts for dealerships to clear space for the incoming 2025 models. Discounts and incentives are popping up more often, but the big question remains: Is it enough?
The core issue isn't hard to spot—prices are simply too high. A $1,000 or $2,000 discount barely makes a dent when the average new car MSRP has been climbing steadily year over year. Sports cars and performance vehicles? Off-roaders? They’re feeling the pinch, too. With the average new car price now hovering near $50,000, many Americans are struggling to afford even a single vehicle, let alone a secondary one.
Interest rates are expected to ease, which might offer some relief for buyers looking to finance. But dealers, reluctant to overstock, are being stingy with discounts. Inventory is kept intentionally slim, and even then, the focus is shifting—another sports car model disappears each year, replaced by an SUV or electric vehicle. For buyers, this adds a sense of urgency. How much longer can you order the sports car of your dreams before the ICE (internal combustion engine) era officially closes its chapter?
The situation spills over into the used car market as well. Cars from the ’90s and early 2000s are now coveted relics of a bygone era, with sellers reluctant to let them go for less than top dollar. They know these vehicles are cultural and mechanical artifacts. Yet, reality bites: the economy can’t be ignored. Just as dealerships must keep the lights on, private sellers face mounting utility bills, rising inflation, and stagnant job markets.
Here’s the silver lining: Timing is everything.
In the next 12 months, falling interest rates could finally collide with meaningful dealer discounts and incentives. Pair that with a more stable job market, and you could land the best deal since 2020. But timing the market is tricky. Don’t stress over getting the absolute lowest interest rate or the deepest discount—focus on what works for you. A reasonable deal, a comfortable payment plan, and a solid savings cushion will go a long way.
And for the EV renaissance? Let’s take a moment of silence. Electric vehicle values are sinking fast in the U.S., and adoption is hitting more roadblocks. While more dealerships are stocking EVs, skepticism around the ecosystem—charging infrastructure, range, and long-term costs—persists. So, what’s the game plan? The car of your dreams might not be out of reach for long.
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