In recent years, the automotive market has experienced a series of dramatic shifts that most consumers could not have predicted before the pandemic. While car dealerships previously faced record demand and limited inventory, many are now dealing with slower traffic on their lots and more cars remaining unsold for longer periods. This change in the market has provided today’s car buyers a unique opportunity to negotiate better deals and secure more favorable financing than they might have found just a year or two ago.
Before the onset of COVID-19, car sales in 2019 enjoyed a pretty stable footing, with dealerships all over the United States reporting an average of 16.9 million new vehicle sales each year, based on a well-known industry metric. However, during the peak of the pandemic in 2020, those numbers fell by about 15% as shutdowns and supply chain issues affected production and lowered demand. Fast forward to 2024 and early 2025, and it looks like the market still hasn’t found its old groove. Rather than being bustling with eager buyers looking forward to the latest models, more and more showrooms are experiencing a lull compared to four or five years ago. Some estimates suggest that dealerships are selling roughly 10% fewer new vehicles in 2024 compared to the same time in 2019, indicating that the industry’s recovery journey has been a bit slower and more uneven than many of us had hoped.
With fewer customers browsing the lots, dealers are suddenly under pressure to move inventory off their showroom floors. This pressure is partly the result of supply catching up with pent-up demand. During the peak of the shortage, manufacturers struggled to secure semiconductors and other components, causing bottlenecks that reverberated throughout the industry. Now that factories are gradually sorting out these supply chain issues, dealerships have more vehicles on hand than they can comfortably maintain, particularly in certain segments like sedans and compact SUVs. More substantial inventory combined with subdued demand in 2024 and 2025 puts consumers in the driver’s seat when it comes to negotiating lower prices and more attractive financing terms.
Another key factor shaping the market for 2024 and 2025 is rising interest rates. Before the pandemic, average auto loan interest rates hovered around 4%. By mid-2023, they had climbed closer to 6%, and projections suggest they may remain in the 5–7% range through 2025. This environment, while seemingly unfavorable at first glance, can actually play into buyers’ hands if they do their research. Higher interest rates mean dealerships are more inclined to sweeten the deal or offer manufacturer incentives that reduce the overall cost of the vehicle. Many dealers are also more open to adjusting the price itself, acknowledging that shoppers need to see real savings to offset the burden of higher financing.
Shrewd consumers can also capitalize on the changing dynamics of trade-ins. With used car prices finally starting to level off after their pandemic-era peak, dealerships are often looking to build a quality pre-owned inventory to sell to more budget-conscious shoppers. This situation can open up new avenues for those trading in a vehicle, as some dealers are still paying competitive amounts to attract well-maintained used models. When combined with the motivation to move new inventory, this can create a perfect climate in which customers have an upper hand: they may find a dealership ready to meet a slightly higher trade-in value and still offer reductions on a brand-new vehicle’s sticker price.
Alongside these incentives, the technological side of car buying has become more transparent. The pandemic accelerated the shift toward online research and virtual showrooms, so consumers can compare prices and read reviews with unparalleled ease. Dealerships that once preferred traditional sales methods are racing to offer digital tools that make browsing, financing, and even completing a purchase more convenient. This transparency and speed of information allow buyers in 2024 and 2025 to lock in the best possible price without having to navigate the high-pressure environment that used to characterize some in-person negotiations.
Although these factors point to plenty of potential advantages for buyers, it remains crucial to stay informed. Economic forecasts can shift quickly, and local markets can vary widely in how they respond to trends in vehicle supply, interest rates, and customer preferences. Yet, overall, the current climate is one where many dealerships are waiting eagerly for the next customer to walk through the door, ready to make a deal they might have been reluctant to offer only a few short years ago.
In this landscape, a little patience and careful research can pay off handsomely. Shoppers who keep an eye on dealership promotions, stay aware of fluctuating financing offers, and negotiate their trade-ins skillfully may well find themselves securing a better price than they believed possible before the pandemic. With so many pieces in flux—inventory levels, demand patterns, and financing costs—the tides have turned in favor of well-prepared and informed buyers. For those looking to purchase a vehicle in late 2024 or through 2025, the window of opportunity to take advantage of dealerships’ need to move cars remains wide open, making this an unusually favorable time for consumers to find the car they want at the right price.
