In a market where car prices are elevated, I choose to lease rather than buy to keep monthly costs predictable and avoid tying up cash in a depreciating asset. Leasing also lets me drive newer, safer vehicles while sidestepping most long-term repair risk. This aligns with my focus on stewarding resources over paying a premium for ownership.
To save money in today's market, target models that are likely to see large price drops in summer 2025. Toyota Camry (2021-2022), Honda CR-V (2020-2021), Chevy Malibu (2020-2022), and Nissan Altima (2021) should get cheaper as lease returns swell supply, inventories rebalance, demand shifts toward hybrids and EVs, and sedan interest cools. Time your search around those arrivals and compare multiple dealers to capture the savings without giving up reliability.
1. From my perspective in the EV universe, it does feel like we are still in "peak pricing." Customers are not surprised by new cars that average about $50,000, as the high MSRPs are caused by trucks, SUVs, and updated technology. Used cars have dropped in price since the wild ride in 2021, but they are still over $30,000, which is 30% more than in 2019. 2. These days, it's about $50,000 per new gas vehicle, closer to $58,000 for EVs, and thankfully, the smaller gas cars are in the low $30,000 range. And that's not the end of the expenses; taxes, registrations, doc fees, and insurance add 8-15%, and insurance for full coverage is in the range of about $2,600 to $2,900 per year for most states. 3. Used prices followed a low-to-high series of ups and downs in a steep curve. The Manheim index hit 257.7 in late 2021 and now sits closer to 205, which is still quite high. Folks paid on average $25,467 for used cars in 2024, which is about 32% more than it was in 2019, and we see the CPI still climbing 6% year-over-year. 4. Financing a new car for about $40,000 for more than 5 years can lead to monthly payments of $680. Add this to monthly premiums, and the payments quickly add up. It can leave some households financially strained. New cars cost about $749 a month, while used cars around $529 a month. Loan terms can be about 69 months. 5. Monthly premiums are shocking, too. The cost of full coverage is about $2,600 a year. Between 2021 and 2024, the cost of premiums jumped close to 50% in the US. The costs are estimated to increase even more from 2025 to 2026, especially for newer cars that are equipped with pricey tech that can soon become expensive to repair. 6. For saving for a car, I recommend 2- to 4-year-old cars. They tend to have modern safety features, and the cost to repair is lower due to depreciation. Get a pre-approval with a credit union, and look for insurance costs before agreeing to anything. Choose a smaller trim level. Skip the add-ons from the dealer. If you are considering an EV, remember to apply for all the incentives that you can. 7. Removing specific preferences on color and trim can result in significant savings. Choosing Certified Pre-Owned offers warranty protection without the new-car cost. Length of loan terms can feel awful in the short term, but it protects you from going upside-down. Always negotiate based on the out-the-door cost as opposed to "comfortable monthly payment." 8. Rob Dillan, Founder of EVhype.com, Los Angeles, CA.
A factor shaping today's pricing is a demographic shift created during the remote-work era. Millions of people moved from transit-friendly cities to suburbs or smaller towns with limited mobility options. This created a surge of households that suddenly required two cars instead of one. The strongest pressure hit the middle-aged used market, where families, gig workers, and local commuters now compete for the same vehicles. The relocation wave didn't fade out; it reshaped demand in a way that continues to keep both new and used prices elevated.