Why consumers could score large on recent vehicles in 2025

Hybrids ruled the roads in 2024 and will still be the top vehicle selection for families this year as trepidation over electric vehicle ownership persists.

EVs, however, may be the best selection for consumers ready to rental agreement or buy a recent vehicle, with deep discounts on a large selection of models, including luxury brands.

President-elect Donald Trump has signaled that he would reverse or pull back some of President Joe Biden’s initiatives to get more Americans to drive EVs, but insiders said the uncertainty should not stop interested buyers from going electric. Here are some of the biggest themes to watch for in 2025, including the rise of Chinese EVs and what a shrinking industry may cruel for consumers.

EV adoption continues to leisurely

Early adopters all have one, but getting the average American to trade in their gas-powered trucks and SUVs for an electric one has been a test for nearly every carmaker. Whether it’s range anxiety or the expense, EVs are being passed over for hybrids and conventional vehicles, meaning excellent deals for consumers willing to receive that leap.

Ed Kim, president and chief analyst at AutoPacific, revised his EV trade distribute in the U.S. to 9.7%, a drop from his previous approximate of 10.3% for 2025.

“EV adoption will develop but at a much slower rate,” he told ABC information. “Automakers are taking a deficit on EVs.”

Whether the Trump administration redirects federal financing away from building out the charging network is a huge variable, Kim noted, but there’s a luminous side for consumers: many recent models will be compatible with the NACS [North American Charging Standard] plug, which Tesla pioneered. Owners of non-Teslas will then be able to advantage from Tesla’s convenient and extensive charging infrastructure.

“One of the challenges to EV adoption is charging. It’s complicated for people,” said Kim. “You have to recognize the difference between L2 and L3 charging. When you have an EV, it’s not as straightforward as just plugging it in.”

He went on, “With automakers replacing their ports with NACS, it’s a large step for simplifying charging and will assist make charging simpler for the buyer.”

Ivan Drury, director of insights at Edmunds, said if Trump eliminates the federal responsibility credits on EVs, there is one business that will largely advantage: Tesla.

“Tesla is the brand people associate with EVs. Everyone knows it and people depend Tesla for electrification,” he said.

0% capitalization returns

It’s been really tough to score a excellent deal on recent cars and trucks in the last few years. With production and manufacturing back to pre-pandemic levels, dealers are eager to reduce excess inventory and 0% capitalization deals are making a profitability.

“The car trade is pretty saturated,” Tony Quiroga, editor-in-chief of Car and Driver, told ABC information. “Dealers desire to meet their sales targets and 0% capitalization is back among many brands.”

The most compelling 0% capitalization deals may be on EVs, but it’s feasible to discover them on traditional Kias, Jeeps and Mazdas, said Quiroga.

“Production will exceed demand for a while, which creates deals for consumers,” Quiroga noted. “Next year will be a great year for car sales. Manufacturers seem motivated to shift the metal.”

Drury said the bar may still be high for some consumers to snag that 0% deal. That should not deter those looking for a recent vehicle though; automakers across the board are providing significant discounts to attract buyers.

“There are more leasing opportunities now than versus a few years ago,” he told ABC information, adding that brand-recent EVs are sitting on lots even with heavy incentives from automakers. If you’re seriously debating getting an EV, now is the period, Drury recommended.

“There is no advantage to potentially waiting for things to get worse,” he said.

Sports cars are still in demand

Sports cars and supercars are clearly not going away. In truth, traditional sports car marques like Bugatti, Aston Martin, McLaren and Lamborghini unveiled powerful, jaw-dropping vehicles to please the enthusiast throng in 2024. Electric sports cars dominate the 0 to 60 mph universe, so automakers are focusing now on what makes internal combustion engines so special, Quiroga said. And expect more of these celebrated cars in 2025.

“The Lamborghini Temerario plays up the positives of what enthusiasts adore about combustion engines,” Quiroga said. “The recent ZR1 has a turbocharged Z06 engine. The Bugatti [Tourbillon] gives customers what they desire to encounter: sound, feel and acceleration.”

Drury said the upcoming Honda Prelude fills a solemn gap in the sports car trade.

“The affordable sport car trade is suffering from entrants and while all the rules have changed when it comes to what powers a sports car … there is little question that having recent blood in this segment will at least get heads to turn and some hearts to beat,” he said. “It might not be a halo car or the highest level of act for the dollar, but Prelude does fill the void that Civic and Accord Coupe left behind years ago.”

There are a few electric sports cars coming that enthusiasts will desire to pay attention to, said Quiroga, such as the Charger Daytona Scat Pack. “I am very enthusiastic about that,” he said.

Tariffs may not stop Chinese EVs from coming to the US

China has been a warm topic in the industry and a focus of the Biden administration. Kim said the selection by Japanese automakers Honda and Nissan to merge forces was likely a strategic shift to keep China at bay.

“China is behind all this business union and shaping up to be a massive powerhouse,” Kim said. “This is happening quicker than many thought.”

Chinese companies produce more cars than any other country in the globe and dominate EV battery technology, he noted.

“The globe is terrified by China and tariffs will only leisurely it down a bit … business union can greatly reduce costs and automakers can distribute resources essential to battle the Chinese, who have massive expense and tech advantages,” said Kim, adding, “It may get unpleasant for existing automakers.”

Quiroga pointed to the high-standard electrics the Chinese are building, including cars that can reportedly get more than 600 miles of range in a matter of minutes.

“Just the sheer volume of production … there’s been this explosion by Chinese automakers,” he said. “They seem determined to shatter into the U.S. trade.”

Kim argued that Trump’s proposed tariffs may not stop Chinese-made EVs from being sold in the U.S. Moreover, China is waging a social media campaign to educate Americans about their vehicles.

“Chinese automakers are ramping up efforts on social media that are targeted to Americans. They’re paying influencers from here to trip to China, drive their cars and put all over TikTok,” he said. “These companies are actively building awareness in the U.S. … the cars will be here sooner than we ponder.”

Drury said the tariff talk and threats from Trump is just that — talk — and does not anticipate the next administration to pursue through on its campaign promises.

“The language is probably much harder than the reality,” he said. “The ramifications for the overall economy are too large. Tariffs are a great bargaining chip, but in terms of them fully being implemented, I question it.”