5 Money Moves To Make If You’re Planning on Buying a Car in 2025
Written by
Josephine Nesbit
Edited by
Amber Barkley
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Buying a car, whether used or new, is a big financial commitment. According to Kelley Blue Book, the average transaction price for a new vehicle was $48,724 in November 2024.
If you plan to buy a car in 2025, here are five expert-recommended money moves to help you make a financially savvy purchase.
Research
Always do your research before buying a car. Choose the make and model that matches your needs.
“Know the type of car that best suits your lifestyle, whether it’s a fuel-efficient sedan, a family-friendly SUV or the latest EV. You can make a list of must-have features and consider the long-term costs like fuel, maintenance and insurance,” said Joe Giranda, a car expert and director of sales and marketing at CFR Classic.
“When researching, don’t stop at the car itself,” he added. “Learn about the dealership or seller, too. Check reviews to see how they treat customers and handle negotiations. A well-regarded dealership will often make the process more transparent and less stressful.”
Renee Horne, chief marketing and customer experience officer at Chase Auto, also recommended weighing your purchasing options. “Evaluate all of your options and learn about the trade-offs of getting a loan, getting a lease or even paying in cash.”
Have a Budget
What kind of car payment can you realistically afford? And what about ongoing costs, like insurance and maintenance?
“Many people focus only on the sticker price, but the ‘real’ cost of owning a car includes fuel, insurance, registration and maintenance,” Giranded explained. “If you’re leaning toward an electric car, for instance, you might have a higher upfront cost but lower ongoing expenses for fuel and maintenance.”
Open a Savings Account
Once you have a budget, consider opening a separate savings account to save up for a down payment.
Down payments lower the amount of money you borrow to finance the purchase, which means you’ll pay less in interest while repaying the car loan. You can pay in cash, trade in your old vehicle or do a combination of both.
Shop Around
When you’re ready to buy a car, shop around for financing options and car insurance and get preapproved.
“While dealerships often offer financing, you might find better rates through your bank or credit union,” Giranda said. “Preapproval gives you a clear understanding of your buying power and lets you walk into the dealership feeling confident. Also, if you’re trading in an old vehicle, research its value beforehand, so you know if you’re getting a fair trade-in deal.”
Time Your Purchase
Timing your vehicle purchase matters. Dealerships are more likely to offer deals at certain times of the month or year.
“If you’re looking for the best deals, consider shopping at the end of the month or quarter, when dealerships are more motivated to hit sales targets. I recommend test driving different models … to see how they feel on the road and to ensure they meet your expectations,” Giranda said. “And remember, take your time and avoid rushing into a purchase just because of a promotional offer.”
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