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The 10 Cheapest Cars to Insure in 2025

The 10 Cheapest Cars to Insure in 2025

Car insurance costs continue to rise in 2025, with the national average annual premium now reaching $2,895. However, not all vehicles are equally expensive to insure. Some models stand out for their lower insurance rates, making them excellent choices for drivers looking to save on total cost of ownership.

We’ve analyzed CarEdge insurance data to find the cheapest cars to insure in 2025. These models not only offer affordable coverage but also have solid reliability, reasonable maintenance costs, and strong safety ratings—all factors that contribute to lower insurance premiums.

Let’s dive into the cars with the cheapest insurance in 2025 and why they are such great choices.

The 10 Cheapest Cars to Insure in 2025

1. 2025 Mazda CX-5

the cheapest cars to insure in 2025
  • Average Annual Insurance Premium: $1,877 ($1,018 below the national average)
  • 5-Year Total Cost of Ownership: $39,836
  • MSRP: $29,990–$42,020

The Mazda CX-5 takes the top spot as the cheapest car to insure in 2025. This popular compact SUV combines strong safety ratings, a smooth ride, and a cabin with a premium feel. Its affordability extends beyond insurance, with affordable total ownership costs and a starting price around $30,000.

See Mazda CX-5 Deals and Value Ratings

2. 2025 Honda CR-V

the cheapest cars to insure in 2025
  • Average Annual Insurance Premium: $1,881 ($1,014 below the national average)
  • 5-Year Total Cost of Ownership: $42,554
  • MSRP: $31,450–$37,850

In 2024, Honda sold 402,000 copies of the CR-V in America, earning fifth place in the sales charts. One reason for the CR-V’s loyal following is affordable insurance. Its advanced safety features and low theft rates contribute to its low insurance costs. With a reputation for durability, this SUV is a smart pick for long-term ownership.

See Honda CR-V Deals and Value Ratings

3. 2025 Hyundai Kona

the cheapest cars to insure in 2025
  • Average Annual Insurance Premium: $1,890 ($1,005 below the national average)
  • 5-Year Total Cost of Ownership: $38,911
  • MSRP: $25,745–$34,795

The Hyundai Kona is a fun-to-drive subcompact SUV that boasts a modern design, impressive fuel efficiency, and strong safety ratings. Kona drivers save about $1,000 per year on insurance compared to the national average.

See Hyundai Kona Deals and Value Ratings

4. 2025 Subaru Outback

  • Average Annual Insurance Premium: $1,893 ($1,002 below the national average)
  • 5-Year Total Cost of Ownership: $45,002
  • MSRP: $30,290–$44,190

After 30 years on the market, the Subaru Outback remains a top-selling model for Subaru.  The combination of all-wheel drive and top-tier safety ratings makes the Outback one of the cheapest cars to insure in 2025..

See Subaru Outback Deals and Value Ratings

5. 2025 Chrysler Voyager

2025 Chrysler Voyager insurance costs
  • Average Annual Insurance Premium: $1,897 ($998 below the national average)
  • 5-Year Total Cost of Ownership: $53,564
  • MSRP: $41,690

Minivans tend to have lower insurance premiums due to their family-friendly nature and strong safety features. The Chrysler Voyager is a budget-friendly alternative to the Pacifica, offering a practical and spacious cabin without breaking the bank on insurance.

See Chrysler Voyager Deals and Value Ratings

6. 2025 Subaru Crosstrek

2025 Subaru Crosstrek insurance costs
  • Average Annual Insurance Premium: $1,897 ($998 below the national average)
  • 5-Year Total Cost of Ownership: $37,923
  • MSRP: $27,115–$33,915

The Subaru Crosstrek is another insurance-friendly option, thanks to its all-wheel drive and standard safety features. The Crosstrek is a great choice for those who need a versatile compact SUV with low long-term costs.

See Subaru Crosstrek Deals and Value Ratings

7. 2025 Hyundai Tucson

the cheapest cars to insure in 2025: Hyundai Tucson
  • Average Annual Insurance Premium: $1,905 ($990 below the national average)
  • 5-Year Total Cost of Ownership: $45,136
  • MSRP: $29,750–$41,190

The Hyundai Tucson is a popular compact SUV that offers a balance of affordability, technology, and fuel efficiency. With Hyundai’s excellent manufacturer warranty and top safety scores, it’s no surprise that insurance costs remain low.

See Hyundai Tucson Deals and Value Ratings

8. 2025 Mazda CX-30

Mazda insurance costs: 2025 Mazda CX-30
  • Average Annual Insurance Premium: $1,909 ($986 below the national average)
  • 5-Year Total Cost of Ownership: $38,600
  • MSRP: $26,415–$38,370

Sporty, stylish, and packed with value, the Mazda CX-30 is one of the best small SUVs for budget-conscious drivers. Its strong crash test performance and reasonable repair costs keep insurance rates below the national average.

See Mazda CX-30 Deals and Value Ratings

9. 2025 Jeep Wrangler

2025 Jeep insurance costs
  • Average Annual Insurance Premium: $1,913 ($982 below the national average)
  • 5-Year Total Cost of Ownership: $55,046
  • MSRP: $33,990–$101,890

Despite its rugged off-road reputation, the Jeep Wrangler is among the cheapest SUVs to insure. Its long-term durability, high resale value, and simple design contribute to reasonable insurance costs.

See Jeep Wrangler Deals and Value Ratings

10. 2025 Kia Niro

2025 Kia Niro insurance costs
  • Average Annual Insurance Premium: $1,914 ($981 below the national average)
  • 5-Year Total Cost of Ownership: $39,851
  • MSRP: $28,365–$42,165

For eco-conscious buyers, the Kia Niro offers hybrid and fully-electric options with low insurance rates. Its affordable maintenance costs and solid safety scores make it one of the cheapest cars to insure in 2025.

See Kia Niro Deals and Value Ratings

About the Data

Our car insurance comparison study assumes a 40 year old good driver with full coverage and good credit that drives around 13,000 miles per year. They also assume a single-car policy on a brand-new vehicle, and won’t reflect any multi-car discounts.

What Makes a Car Cheaper to Insure?

Several factors influence how much you’ll pay for auto insurance, including:

  • Safety Ratings: Vehicles with high crash test scores and advanced driver assistance features typically have lower insurance premiums.
  • Repair Costs: The availability and price of replacement parts affect insurance rates. Cheaper-to-repair vehicles cost less to insure.
  • Vehicle Type: Affordable sedans and SUVs tend to have lower premiums compared to sports cars and luxury models.
  • Theft Rates: Cars that are frequently targeted by thieves may have higher insurance costs.

Bottom Line: The Best Cars for Low Insurance Costs in 2025

If you’re looking to save money on insurance in 2025, compact SUVs and hybrid models tend to be the best bets. The Mazda CX-5, Honda CR-V, and Hyundai Kona lead the pack, offering insurance rates more than $1,000 below the national average.

Before buying a car, it’s always smart to compare insurance quotes to ensure you’re getting the best deal. CarEdge offers free tools to help you calculate the total cost of ownership, including insurance, depreciation, and maintenance costs.

See how much you could save on your car insurance today!

Too Many Cars, Not Enough Buyers – Presidents’ Day 2025 Deals Are Heating Up

Too Many Cars, Not Enough Buyers – Presidents’ Day 2025 Deals Are Heating Up

Following a strong December fueled by luxury sales and holiday promotions, the new year kicked off with a sharp decline in vehicle transactions. According to new data from Cox Automotive, new car sales dropped 25% month-over-month in January, leading to a notable increase in inventory levels. With year-end buying season over and interest rates still high, new car inventory is up 26% since the start of January.

For car buyers, this means increasing negotiability for February’s Presidents’ Day deals. Let’s take a closer look at how new car inventory, pricing, and incentives are shaping up for 2025.

New Car Inventory Builds, But Some Brands Face Bigger Challenges

February new car inventory

As sales cooled off in January, total new vehicle inventory rose to 2.92 million units at the start of February, marking a 14.2% increase year-over-year. However, the biggest change is the sharp rise in days’ supply, which surged to 96 days, far above the industry norm.

Ford and Chevrolet have the largest share of new car inventory, accounting for 17% and 11% of available stock, respectively. Meanwhile, Toyota, Honda, Kia, and Hyundai continue to dominate overall sales, with strong retail demand keeping their days’ supply lower than competitors.

Some brands are carrying particularly high levels of unsold inventory, creating opportunities for buyers to negotiate better deals. Stellantis—home to Jeep, Dodge, Ram, and Chrysler—has seen a dramatic shift in its supply situation. After struggling with excessive inventory last year, aggressive discounting has helped normalize Stellantis’ stock levels, though some models still linger well above industry averages:

  • Dodge – 133 days’ supply
  • Jeep – 128 days’ supply
  • Ram – 120 days’ supply
  • Chrysler – 109 days’ supply

However, Ford and Lincoln now top the charts for the highest inventory buildup, with many 2024 models still sitting unsold. Ford’s lineup is particularly weighted down by last year’s models, with 63% of their inventory still 2024 models.

SUVs and Trucks Still Dominate Sales

Despite the slowdown in overall sales, compact SUVs and full-size pickup trucks continue to be America’s best-selling vehicles.

The Toyota RAV4 remains the best-selling SUV, making it one of the least negotiable vehicles on the market. With an average listing price of $38,403, buyers can expect strong demand and limited discounts on this popular model.

On the other hand, full-size trucks have significantly more inventory, leading to higher negotiability. The Ford F-150, America’s best-selling truck, has a staggering 141 days’ supply—far above the industry average. Buyers looking for a full-size truck may find bigger discounts and more dealer incentives as brands work to move inventory.

New Car Prices Are Falling

With demand cooling off, new car prices took a step back in January.

The average listing price for a new vehicle dropped to $48,637, a 2.5% decrease from December. While this still represents a 2.5% increase year-over-year, the decline is a welcome relief for shoppers who faced record-high prices in 2023 and 2024.

For budget-conscious buyers, more affordable new cars are still available:

Incentives Drop in January, But February Brings Big Sales

One of the biggest drivers of December’s strong sales was higher manufacturer incentives, but those deals dropped in January. In January 2025, new car incentives fell to 7.2% of the average transaction price, or approximately $3,486 per vehicle.

February’s rising inventory has automakers bringing back BIG incentives for Presidents’ Day, especially on leftover 2024 models.

See the best deals in your ZIP code (free tool)

What This Means for Car Buyers in 2025

Car buying checklist - everything you need to buy a car

January’s slowdown has set the stage for some of the best Presidents’ Day car deals in years. With inventory climbing, buyers shopping for EVs, full-size trucks and slower-selling SUVs will have more leverage to negotiate. While incentives dipped slightly in January, they remain well above 2024 levels, and Presidents’ Day sales events are expected to bring even deeper discounts as dealers work through excess inventory. 

For the best deals, focus on models with high days’ supply, especially these slowest-selling cars and trucks. 

Shop smart in 2025! Use CarEdge’s free tools to compare local inventory levels, dealer pricing, and market trends before heading to the dealership.

See the Best Car Deals in Your Area Now!

Auto Insurance Rates Are Up 12% Since Last Year – Here’s How Tariffs Will Impact Premiums

Auto Insurance Rates Are Up 12% Since Last Year – Here’s How Tariffs Will Impact Premiums

Auto insurance rates are climbing once again in 2025, and the latest data suggests that relief is nowhere in sight. According to the February 2025 Consumer Price Index, the motor vehicle insurance index rose 2.0% in January, pushing the 12-month increase to nearly 12%. Car insurance costs have been rising steadily for the past three years, and new factors – including tariff’s impacts on car prices and auto parts – threaten to send rates even higher. Here’s what’s driving up auto insurance costs in 2025, and what it means for drivers.

Insurance Rates Continue to Rise

Auto insurance rates have been on a steady upward trajectory since 2022, and new projections suggest that costs will increase another 5% in 2025. According to Insurify, auto insurance rates soared 15% in 2024, while EV insurance costs for nine popular models jumped 28% over the same period.

Today, the average cost of full-coverage auto insurance is $2,313 per year, but for many drivers, it’s far worse. In six states, annual premiums exceed $3,000, making car ownership even more expensive. Many drivers fail to plan for insurance costs prior to purchasing a vehicle, making insurance expenses one of the hidden costs of vehicle ownership, alongside depreciation. 

Why Are Auto Insurance Rates Rising in 2025?

Auto insurance rate forecast - Tariff impacts in 2025. Source: Insurify.com

Several factors are driving the increase in car insurance costs, including:

  • Rising Vehicle Repair Costs: As cars become more technologically advanced, repairs are more expensive. This is especially true for EVs, which tend to have higher repair costs than gas-powered vehicles. Even ICE vehicles have costly electronic components these days, making it more difficult to avoid the risks of costly repairs. 
  • Climate Risk Adjustments: Insurance companies are increasingly factoring climate risks into their rates. More frequent hurricanes, wildfires, and severe weather events are leading to higher claims payouts, which results in rising premiums for all drivers.
  • Previous Insurance Industry Losses: In 2022, insurers faced a record $33.1 billion in underwriting losses, prompting a 24% increase in full-coverage policy costs in 2023. While the market is stabilizing, insurers are still adjusting their pricing models.

Some states are seeing a bit of relief. In the second half of 2024, average premiums decreased in 21 states. However, Insurify projects that drivers in Florida, New York, Georgia, Nevada, and Delaware will see the biggest rate hikes in 2025, with full-coverage rates expected to rise another 10% in these high-cost states. Nationwide, the average auto insurance premium is forecast to reach $2,435 in 2025.

How Tariffs Will Push Car Insurance Even Higher

New tariffs on cars, auto parts, and manufacturing materials are poised to make vehicle ownership even more expensive in 2025.

According to a Wall Street Journal report, auto insurance rates are particularly sensitive to tariff’s impacts because higher car prices lead to higher repair costs – which in turn drives up insurance premiums.

While tariffs on Canadian and Mexican imports have been delayed, the Trump administration has announced new tariffs on steel, aluminum, and imported semiconductors – all of which will increase manufacturing costs for automakers. Additionally, auto repair costs will rise as imported components become more expensive. As both car prices and repair costs rise, auto insurance rates will follow suit.

Even before these tariffs take effect, vehicle repair costs are already rising. The February 2025 CPI report showed that vehicle repair costs increased by 7.4% year-over-year, reflecting higher parts costs and labor shortages. With 40% of imported car parts coming from Mexico and Canada, many automotive repairs will become more expensive in 2025.

Car Prices Are Set to Climb to New Records

Tariffs are also expected to drive new car prices to record highs in 2025. As of February, the average new car sells for $49,740, or just a hair below 2022’s record high. Later this year, average new car prices are likely to surpass $50,000 for the first time.

One prominent industry analyst predicts that if the Trump administration’s proposed 25% tariffs on Mexico and Canada go into effect, the cost of a new car could rise by nearly $6,000. A Benchmark analysis estimates that these tariffs would push the average new car price above $54,500, a 12% increase compared to 2024.

The auto industry is among the most vulnerable to these tariff increases due to its heavy reliance on global supply chains. Benchmark found that:

  • More than 22% of finished cars and 40% of auto parts imported into the U.S. come from Mexico and Canada.
  • Tariffs on these imports will increase production costs, forcing automakers to raise prices.
  • Consumers will ultimately bear the brunt of these added costs—not just in vehicle prices, but in higher insurance rates, registration fees, and financing costs.

What Drivers Can Expect in 2025

CarEdge Calculators promotional image with a blue SUV and different car-related calculator options
Check out these Free Car Buying Calculators

Between rising repair costs, climbing insurance rates, and looming auto tariffs, the cost of car ownership is headed even higher in 2025. Auto insurance rates are up 12% over the past year, and experts predict another 5% increase this year, with drivers in high-cost states facing the biggest hikes.

At the same time, tariffs on vehicles and auto parts could add thousands of dollars to the cost of new cars, leading to even steeper increases in insurance premiums. The combined impact of these factors means that car buyers and owners need to be more strategic than ever when shopping for a new vehicle or renewing their insurance policy.

💡 How can you save?

At CarEdge, we provide free tools and expert insights to help you navigate rising car costs in 2025. From comparing insurance rates to finding the best car deals, we’re here to help you make smarter car-buying decisions.

👉 Lock in a Low Rate BEFORE Insurance Premiums Rise – Compare Offers in Minutes

Presidents’ Day 2025 Truck Deals – Best Discounts and Zero Percent Financing

Presidents’ Day 2025 Truck Deals – Best Discounts and Zero Percent Financing

Presidents’ Day weekend is shaping up to be a great time to buy a truck in 2025. With an oversupply of 2024 models lingering on dealer lots and automakers pushing aggressive financing incentives, truck buyers can take advantage of some of the biggest discounts we’ve seen in months. It’s almost like December’s clearance sales never ended. Whether you’re looking for a workhorse or a luxury-packed pickup, here are the best Presidents’ Day truck deals to take advantage of in February 2025.

Toyota Presidents’ Day Truck Deals

2025 Toyota Tacoma – Lease from $399/month with $0 Down

2025 Toyota Tacoma deals this month

Best Offer: Lease from $399/month for 36 months with $0 due at signing (select markets only, check Toyota.com for availability). This offer expires on March 3, 2025.

The 2025 Toyota Tacoma is a popular midsize truck with legendary reliability. In fact, the Tacoma earned the #3 spot in our car reliability rankings. Although this zero-down truck deal is available in select markets, similarly compelling deals are available in other regions. 

👉 Check out the best Toyota deals near you

GMC Presidents’ Day Truck Deals

2024 GMC Sierra 1500 – Lease from $389/month

Presidents Day Truck Deals 2025

Offer: Lease from $389/month for 24 months with $3,609 due at signing (for returning GM lessees). See offer details. This offer expires on March 3, 2025.

GMC’s full-size Sierra 1500 continues to be a top contender in the pickup segment. If you’re a current GM lessee, you can take advantage of one of the lowest monthly payments on a full-size truck this February.

👉 Check out the best GMC deals near you

Ram Presidents’ Day Truck Deals

2025 Ram 1500 – 4.9% APR + Up to $13,000 Cash Allowance

Ram 1500 Presidents Day specials

Offer: 4.9% APR for 72 months + up to $12,500 cash allowance for current FCA lessees on select V6 2025 Ram trucks. See offer details. This offer expires on March 3, 2025.

For truck buyers looking for big savings, Ram’s cash allowance is one of the best incentives available this Presidents’ Day. Current lessees of FCA vehicles can get up to $12,500 in savings, making it one of the strongest deals on a 2025 model.

👉 Check out the best Ram deals near you

Chevrolet Presidents’ Day Truck Deals

2024 Chevrolet Silverado EV – 0% APR for 60 Months

Silverado EV APR deals

Offer: 0% APR financing for 60 months on the 2024 Chevy Silverado EV. See offer details. This offer expires on March 3, 2025.

With up to 440 miles of all-electric range, the 2024 Chevrolet Silverado EV is one of the longest-range electric trucks on the market. Chevy is offering zero-percent financing for 60 months, making this one of the best deals available for anyone looking to make the switch to an EV pickup. If you can charge at home overnight, this is a fantastic deal. 

👉 Check out the best Chevrolet deals near you

Ford Presidents’ Day Truck Deals

2024 Ford F-150 – 3.9% APR + Bonus Cash

Presidents Day Ford F-150 deals

Offer: 3.9% APR for 60 months + $3,350 bonus cash. The F-150 Lightning is available with 0% APR for 72 months and includes a free home charger with installation. See offer details. This offer expires on March 3, 2025.

Ford has 73,000 2024 F-150s left to sell, so it’s no wonder that they’re offering serious incentives in February. Buyers can get low financing rates on the gas-powered F-150, while those going electric can take advantage of zero-percent financing and a free home charger with installation for the F-150 Lightning.

👉 Check out the best Ford deals near you

Lock in Presidents’ Day Truck Deals with CarEdge

February 2025 is a great time to buy a truck, with manufacturers offering deep discounts on pickups. Whether you’re interested in a low-payment lease, zero-percent financing, or massive cash discounts, these Presidents’ Day truck deals are worth considering before they expire in early March.

The key to maximizing your savings is shopping smart and negotiating with confidence. At CarEdge, we offer free and premium tools to help you get the best possible deal on your next truck purchase:

✅ CarEdge Car Buying Guide – Check local inventory levels, see dealer invoice pricing, and find the most negotiable trucks in your area.
✅ CarEdge Car Buying Service – Have an expert negotiate the deal for you, securing the lowest price and best financing terms. Home delivery is available.

See the Best Presidents’ Day Truck Deals in Your Area Now!

The Cheapest States to Buy a Car in 2025 – Taxes, Fees, and More

The Cheapest States to Buy a Car in 2025 – Taxes, Fees, and More

Buying a car in 2025? Your location can have a big impact on how much you’ll pay. From state sales taxes to registration fees, the cost of a new or used car can vary by thousands of dollars depending on where you buy. So, where can you find the best deals this year? We’ve analyzed nationwide data to identify the cheapest states to buy a car in 2025. Whether you’re looking for a brand-new ride or a used car, knowing where to shop can help you save big on your next vehicle. Here’s where in America you’re most likely to drive home a great deal.

the cheapest state to buy a car

Nationwide, the average new car transaction price in 2025 is $49,740. However, that number only tells part of the story. The actual cost of a new car varies widely from one state to the next due to differences in sales tax, registration fees, and dealer charges.

By calculating the total out-the-door price for the average new car across all 50 states, we’ve pinpointed where car buyers will save the most – and where they’ll pay the highest prices. But first, an important note: When buying a car out of state, the sales tax you owe is based on where you register the vehicle, not where you buy it. Always check with your local DMV to confirm the exact process and avoid unexpected costs.

The 5 Cheapest States to Buy a Car in 2025

If you’re looking to save thousands of dollars on your next vehicle, your best bet is to shop in one of these five states.

1. Oregon Is the Cheapest State to Buy a Car

Why It’s the Cheapest: No state sales tax, low registration fees
Total Additional Costs: $500–$700
🚗 Average Savings vs. Most Expensive States: $3,500+

Oregon is the absolute cheapest state to buy a car in 2025, thanks to its lack of a statewide sales tax and low registration fees. On top of that, dealership documentation fees (Doc Fees) are lower than the national average.

2. New Hampshire

Why It’s Affordable: No state sales tax
Total Additional Costs: $650–$850
🚗 Average Savings vs. Most Expensive States: $3,000–$3,500

New Hampshire also has no state sales tax, keeping vehicle prices lower than in most other states. While registration fees in New Hampshire are slightly higher than in Oregon, the savings on sales tax still make it one of the most affordable places to buy a car.

3. Montana

Why It’s Affordable: No state sales tax, low registration costs
Total Additional Costs: $500–$750
🚗 Average Savings vs. Most Expensive States: $3,000+

Montana has long been a go-to state for those looking to buy a car while avoiding extra fees. With no state sales tax and relatively low registration fees, Montana remains one of the cheapest states to purchase a vehicle in 2025.

4. Alaska

Why It’s a Great Deal: No state sales tax, reasonable fees
Total Additional Costs: $650–$900
🚗 Average Savings vs. Most Expensive States: $2,000+

Alaska rounds out the top five with zero state sales tax and lower-than-average Doc Fees, making it one of the best states for keeping out-the-door costs low.

5. Delaware

Why It’s a Great Deal: No state sales tax, low fees
Total Additional Costs: $700–$2,200*
🚗 Average Savings vs. Most Expensive States: $2,000+

Delaware is another no-sales-tax state, meaning buyers can avoid a hefty extra charge when purchasing a new or used vehicle. However, Delaware charges a Doc Fee that is 4.25% of the vehicle’s value, which in practice in similar to a sales tax. Still, Delaware is one of the cheapest states to purchase a car in 2025.

The Complete Rankings

Looking for your state? We’ve crunched the numbers for all 50 states, using the state sales tax rates, vehicle registration fees, and average Doc Fees to calculate the out-the-door price in each U.S. state. Feel free to sort the data by any of the variables to see how your state stacks up.

StateCheapest States to Buy a CarState Sales TaxAverage Doc FeeRegistration FeesAverage New Car Price (w/ tax and fees)
Oregon10.00%$250$169$50,159
New Hampshire20.00%$375$51$50,166
Montana30.00%$299$237$50,276
Alaska40.00%$299$245$50,284
Delaware50.00%$2,114*$45$51,910
New York64.00%$175$146$52,040
South Dakota74.20%$200$122$52,140
Hawaii84.00%$395$78$52,192
Georgia94.00%$599$20$52,338
Missouri104.23%$565$57$52,455
Colorado112.90%$699$595$52,469
New Mexico124.88%$339$60$52,553
Wisconsin135.00%$299$85$52,598
Alabama144.00%$489$393$52,601
North Dakota155.00%$299$123$52,636
Oklahoma164.50%$599$100$52,665
Louisiana175.00%$425$64$52,703
Wyoming184.00%$500$616$52,835
Nebraska195.50%$299$83$52,843
Ohio205.75%$250$31$52,866
Vermont216.00%$200$78$52,986
Maine225.50%$499$40$53,000
West Virginia236.00%$250$52$53,010
Texas246.25%$150$74$53,056
Michigan256.00%$260$128$53,096
Arkansas266.50%$129$28$53,113
Utah276.10%$299$57$53,114
South Carolina286.00%$400$40$53,148
North Carolina294.75%$699$370$53,159
Kentucky306.00%$450$26$53,184
Pennsylvania316.00%$449$39$53,196
Virginia325.30%$799$36$53,197
Iowa336.00%$180$333$53,221
Washington346.50%$199$73$53,228
Idaho356.00%$399$126$53,233
Illinois366.25%$347$151$53,330
Minnesota376.88%$125$69$53,338
Massachusetts386.25%$459$60$53,351
Maryland396.00%$499$187$53,394
Indiana407.00%$199$38$53,440
Kansas416.50%$499$80$53,535
Arizona425.60%$499$564$53,573
Rhode Island437.00%$399$58$53,660
Connecticut446.35%$599$180$53,660
Nevada456.85%$499$49$53,677
Tennessee467.00%$499$29$53,731
California477.25%$85$524$53,936
New Jersey486.63%$695$271$53,986
Florida496.00%$999$297$54,004
Mississippi507.00%$425$719$54,347

Car Prices Are Climbing Again in 2025

Following a brief decline in prices in 2024, car prices are climbing again in 2025. New car prices are back near record highs, while luxury vehicles now make up a larger share of the U.S. market than ever before.

While automakers are finally introducing more budget-friendly models, the average new car price remains out of reach for many buyers. That’s why shopping strategically is more important than ever. Where you buy your next car matters, and can make the difference between a fair deal and overpaying. 

How to Save on Your Next Car Purchase

Whether you’re shopping for a new or used car in 2025, here are some smart ways to save:

  • Compare prices in multiple states: If you live near a low-tax state, buying there could save you thousands.
  • Negotiate fees: Some dealership fees, like Doc Fees and add-ons, can be negotiated.
  • Consider leftover 2024 models: Dealers are eager to move last year’s inventory, which means big discounts.
  • Use CarEdge Insights: Track real-time car price trends and get the best deal possible.

Stay Ahead of the Car Market in 2025

Car buying checklist - everything you need to buy a car

Buying a car this year? Knowing where to shop could save you thousands. Before heading to the dealership, make sure you’ve done your research and know what to expect. Stay on top of the latest car market trends, incentives, and deals with the free CarEdge Research Hub. Compare total cost of ownership, explore today’s best offers, and make the smartest car-buying decisions in 2025.