Tariffs, Rising Prices & the Smart Money Move: Why a Late-Model Used Car Is Your Best Bet in 2025
Used Cars for Sale in White River Junction | Best Used Car Deals | Great Car Deals in White River Jct., Vermont
🚗 A New Surge in Car Prices Is Here-But You Still Have Time to Make a Smart Move
In April of 2025, sweeping 25% tariffs on foreign content in cars sold in the United States, minus vehicles covered by the North America Trade pact, sent ripples across the auto industry. While the full extent of these changes is still unfolding, one trend has already made itself clear: new vehicle prices are rising fast, and the most affordable models-especially those assembled in Mexico or Asia-are becoming harder to locate on dealership lots.
According to Cloud Theory, the average advertised price of a new vehicle in the U.S. just surpassed $50,000, its highest level since December 2024. Combine that with rising borrowing costs and economic uncertainty, and many customers are finding that new cars simply don't fit the budget anymore.
But there is good news: At Upper Valley Auto Mart, we've helped customers in Vermont and New Hampshire pivot to late-model used cars, saving hundreds in monthly payments, versus an equivalent new vehicle. Now could be the time to possibly save hundreds if not thousands overall, by acting before the rising tide hits the used market too, driving up used car prices.
📊 What’s Driving the Price Surge?
The recently announced tariffs of 25% on imported vehicles and foreign vehicle content have already started shifting the market landscape. Many affordable new vehicles-like the Chevy Trax, Ford Maverick, and Nissan Sentra-are assembled outside the U.S., and may see the sharpest price increases if manufacturers decide to pass on the extra cost to customers.
In response, several automakers are already pulling back:
- Jaguar Land Rover has paused imports altogether.
- Audi and Mitsubishi are holding vehicles at U.S. ports.
- Hyundai is holding prices only through June.
In short: it's an unpredictable environment, and many analysts agree that new vehicle prices will likely rise further over the next several months, especially for affordable models. Reading the tea leaves is difficult, but acting now could result in substantial savings.
⬆️ The Price Shock: Average New Vehicle Now Over $50,000!
Think about that! $50,000.00, that is a lot of money. According to data from Cloud Theory, the average marketed price for a new vehicle is now $50,025 as of April 14, 2025. Industry observers are only expecting it to go up in the near term.
This spike started at the end of the first quarter of 2025-right when tariff talks started to intensify. Manufacturers, anticipating cost increases and uncertain supply, began reducing incentives, driving prices up fast, while some brands also held back shipments decreasing supply.
As incentives dry up, average monthly payments are headed up also. According to Edmunds, the average monthly new-vehicle payment in the first quarter of 2025 is now $741 month-and in some cases, buyers are paying even more.
📅 84-Month Loans: A Monthly Solution That Creates Long-Term Problems
One trend helping buyers cope with rising monthly costs. Stretching their auto loans out with longer terms.
Edmunds reports that 20% of new-vehicle buyers in the first quarter of 2025 took out 84-month loans. While this may make the monthly payment look more manageable, it comes at a steep price.
Here's why:
- These customers often owe more than their vehicle is worth for much longer, staying in a negative equity position well beyond the third year.
- This makes trading in difficult unless you bring cash to cover the shortfall-or finance the old debt into a new loan. In the auto industry, we call that being "upside down"-and it results in higher monthly payments when you roll old debt into your next auto loan.
- Alternatively, customers keep the car longer, but by year four or five, they begin to experience increased repair and maintenance costs-especially as warranties start to expire. Many customers struggle with the burden of budgeting for both a monthly car payment and large maintenance costs like complete brake repairs, new tires or suspension issues.
Stretching your loan may ease the pain today but often increases it down the road. That's why many smart buyers in White River Junction are pivoting to another option: a late model used car with a lower upfront investment and shorter loan terms.
🚀 Why Used Car Prices Could Be Next to Rise
Whenever new car prices rise, the spillover effect into the used car market is inevitable.
Inventory on affordable used models is already tightening.
Vehicle acquisition costs have risen significantly-Our used car acquisition staff has seen it starting to grip the wholesale market the past week, with prices ticking up more than the usual spring market adjustment.
More shoppers are delaying new purchases or shifting to used, according to surveys by Oliver Wyman and HarrisX adding to the pressure on used car pricing.
This creates a classic supply-and-demand crunch, especially for vehicles priced under $30,000. And if history repeats itself, prices for used cars are likely to climb steadily over the summer.
That's why buying a late model used vehicle now, while supply is available and prices are still competitive, especially on vehicles used car dealerships acquired in March or earlier. It is a move that could save you thousands.
💵 The Advantage of Buying Now at Upper Valley Auto Mart
At Upper Valley Auto Mart in White River Junction, we anticipated rising prices that tariffs would bring. Many of the used vehicles currently on our lot were purchased before the tariff announcement, allowing us to offer great car deals that beat the current upwards market trajectory.
Our vehicle acquisition staff is seeing pricing rise at recent auctions and wholesale channels. Luckly we locked in lower costs with some early purchases, allowing us to:
- Hold the line on prices better than some competitors.
- Pass savings on to our customers.
- Offer a better selection of used cars for sale than dealers now scrambling to restock.
That means our customers can still access some of the best used car deals in White River Jct., Vermont-but that window may close quickly as summer approaches. Don't miss out.
💡 Why Late-Model Used Is the Smartest Buy Right Now
Not sure if a used vehicle is right for you? Here's what you gain:
✅ Lower monthly payments: Save $50-$100-$150-$300 or more per month vs. new.
✅ Better value retention: Avoid steep first-year depreciation.
✅ Shorter loan terms: Many of our customers finance for 60 months, some even shorter terms, gaining equity quicker.
✅ Still under warranty: Many used models are recent enough to still carry factory warranties or qualify for extended coverage.
Example: Compare the new Vehicle Window Sticker above on one of our 2023 Ram 4X4 Crew Cabs in stock. $55,525 when it was new, but today, two years later you can buy it used for just $28,661 a savings of over $26,000! You could pay $944 a month with a 72-month loan at 6.9% with no money down on the new truck versus a 60-month loan at 7.9% with no money down and pay only $579 a month. That's a savings of over $360 a month. Think what you could do with the extra money each month.
% Rising Interest Rates: Another Reason Not to Wait
It's not just vehicle prices that are on the rise. Government bond yields have climbed in April, signaling that banks may begin raising auto loan rates again this summer. The last time this happened, lenders raised interest rates adding extra costs to families with higher monthly payments on auto financing.
Waiting just a few weeks could cost you:
- More in interest, even if prices stayed the same, something that is very hard to anticipate, as changes can be made to tariffs, but it will take months to correct the changes it will have brought to the new and used car market.
- Fewer financing options, as lenders tighten credit with economic uncertainty.
🚘We've Got the Right Used Car for You-Right Now
Looking for a reliable, affordable vehicle that fits your budget?
We've got you covered with:
- Fuel-efficient sedans under $20K
- AWD SUVs under $25K
- Pickup trucks priced below market value
- Warrantied pre-owned and low-mileage trade-ins
- Fresh inventory arriving weekly
Browse our inventory online, or stop by our dealership in White River Junction. Our team is here to help you make the right choice, without the pressure.
🛒 Make the Smart Move-Beat the Market-Buy Smarter
Nobody has a crystal ball. But if recent history is any indication, prices for both new and used cars are headed up.
You don't have to overpay-or wait until rising rates and tight inventory leave you with fewer choices.
At Upper Valley Auto Mart, we're here to help you:
- Save on your next vehicle
- Avoid negative equity
- Lock in today's pricing and rates
- Drive a great used car with confidence
💥 The best time to buy is before prices and rates go higher. ✅ Shop the best used car deals in White River Junction today.
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Published April 14, 2025
