Jordan Rosenfeld

Sun, May 11, 2025, 10:02 AM4 min read

Unless you’re a car collector, having to buy a new car can come with a sense of dread at the big expense. Add in the confusion about how new and forthcoming tariffs on foreign trading partners may affect the costs of car manufacturing, and even the price of gas, and this year could feel like a really stressful time to buy a new car.

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However, what about used cars? To get a simple answer to this potentially complex question, I asked ChatGPT whether or not I should buy a used car in 2025, and here is what it said.

Ever the analyst, ChatGPT didn’t give me a straight answer, but instead suggested that anyone thinking about buying a car this year consider the following facts:

• Lower Initial Cost: Used cars are “significantly cheaper than new vehicles,” ChatGPT pointed out, which means you pay less upfront and monthly than if you buy a new car.

• Reduced Depreciation: Your new car starts losing value in its first year — as much as 20% to 30%. “A used car helps you avoid this steep depreciation,” ChatGPT said.

• Lower Insurance Costs: Insurance premiums can be steep on new cars, and are typically lower on used cars, “potentially saving you hundreds per year.”

• Availability: Post-pandemic supply chain issues are stabilizing by 2025, making used cars more abundant, and potentially more affordable.

Those factors above aren’t the only ones to weigh. From current economic uncertainty to technology, maintenance and other costs, cars can come with unexpected costs. The most important factors to consider, according to ChatGPT, are:

• Interest Rates: Interest rates “remain unpredictable,” ChatGPT wrote. High interest rates could put new cars out of range and make used cars a more frugal bet.

• Reliability and Maintenance Costs: On the other hand, used cars are often older models that might need more frequent repairs, and are likely out of warranty, which could cost you more in surprise expenses.

• Fuel Efficiency and Technology: Newer cars, particularly hybrids and electric vehicles, “might offer long-term fuel savings and advanced safety features, offsetting their higher initial cost,” ChatGPT wrote.

• Economic Conditions: First, ChatGPT warned me to make sure I consider my own economic situation, such as job security and my overall financial stability. Then, it suggested I consider “inflation trends” and pointed out that “opting for the less expensive used car might reduce financial stress.”