Is car market going to crash?

A full-scale car market crash is unlikely, but experts predict a gradual softening and stabilization of prices in 2026 after high inflation, with increased inventory and potential interest rate drops shifting power towards buyers, though high costs and affordability remain challenges. While some analysts warn of potential manufacturer/dealership issues due to oversupply, the general consensus points to a return to more normal, albeit slower, market conditions rather than a 2008-style collapse.

Are car prices expected to decline?

Car prices aren't expected to drop significantly soon; instead, new car prices are stabilizing at high levels, while used car prices remain elevated but might see slight dips in some categories as 2026 begins, influenced by tariffs, lingering supply chain issues, and higher interest rates, though falling rates could ease monthly payments. Expect more incentives and discounts on specific models as dealers clear 2025 inventory and 2026 models arrive, but overall prices are unlikely to return to pre-pandemic lows. 

Is the auto industry in trouble in 2025?

Yes, the auto industry in 2025 faces significant trouble, characterized by a chaotic mix of high inventory, slowing EV demand, economic uncertainty (tariffs, high prices), and intense pressure to transform for software/sustainability, leading to production cuts, financial charges, and a tough market with oversupply and affordability crises, forcing many to pivot or risk failure. 

Is it better to buy a car now or wait until 2025?

You should buy a car now (late 2025) for deals on outgoing 2025 models, leveraging year-end incentives and better inventory, or wait until late 2025/early 2026 for aggressive 2026 model-year clearance, but be aware of potential 2026 model year price hikes and expiring EV tax credits by Sept 2025, making late 2025 a sweet spot. Waiting longer risks higher prices and potentially rising interest rates, though new inventory levels are improving. 

How much should I spend on a car if I make $60,000?

On a $60,000 salary, you can generally afford a car in the $20,000 to $30,000 range, with total monthly car expenses (payment, insurance, gas, maintenance) ideally staying under 15-20% of your take-home pay, which might be around $300-$450 for just the payment, though some say up to 35% of gross income for the total vehicle price. Key factors are your credit score, down payment (aim for 20% to avoid PMI and reduce interest), loan term (shorter is better), and other debts. 

The Car Market COLLAPSE IS HERE

What car can I afford making $3,000 a month?

Take-home pay is the amount you make each month after taxes, so if you bring home $3,000 monthly after taxes are deducted, it's likely you can comfortably afford a $300 car payment.

How much should I spend on a car if I make $100,000 a year?

With a $100,000 salary, you can generally afford a car worth $30,000 to $50,000, depending on your other finances, with total monthly car expenses (payment, insurance, gas, maintenance) ideally under $800-$1000 (10-20% of your net pay). A good guideline is keeping the total vehicle value under half your annual gross income, but prioritize conservative spending, a 20% down payment, and shorter loan terms for better financial health. 

What is the 8% rule when buying a car?

The 20/3/8 rule is a guideline that suggests you put 20% down on a car and repay the loan over three years. Applying the rule correctly will also require your monthly payment and car expenses be 8% or less of your income.

Why Dave Ramsey says not to finance a car?

“Cars, trucks, RVs, boats, and everything that has motors and wheels go down in value,” Ramsey wrote recently. “NEVER finance them, because they go down in value and you get stuck in them. Don't let debt trap you in something that's losing value every day. Save up, pay cash, and own it outright.”

What is the cheapest month to buy a new car?

The cheapest months to buy a new car are typically October, November, and especially December, due to year-end model clearances and salespeople/dealerships racing to meet annual quotas, with great deals also found at the end of the first quarter (March/June) and during holiday weekends like Memorial Day. Waiting until the final days of the year offers the most significant discounts as dealers clear out outgoing model years (e.g., 2025s to make way for 2026s). 

How much commission does a car salesman make on a $30,000 car?

It is just a way for the dealer to ensure he's making money by reducing the sales commission. If the invoice cost of a vehicle, for example, is $30,000, then the normal 5-percent profit would be $1,500 and the 25-percent sales commission on the sale would be $375.

What does Gen Z call a car?

Gen Z slang for a car often uses "whip," meaning a cool or nice car, but they also give them personal nicknames like "Baby," "Babe," "Beast," or "Rocket," with terms like "banger" for a great car or "ride" also common, while traditional slang like "clunker" still pops up for older ones. 

What cars will be discontinued in 2026?

For the 2026 model year, numerous cars are facing discontinuation, including popular sedans like the Acura TLX, Subaru Legacy, and Volvo S60/S90, alongside luxury models like the BMW 8 Series, Lexus RC/RC F, and gas-powered Porsche 718 Boxster/Cayman, with many being replaced by EVs or consolidated due to shifting consumer interest towards SUVs, according to various automotive news sources. 

What's the worst month for car sales?

The slowest months for car sales are typically January and February, following the busy December holiday season, as consumers recover financially and face cold winter weather, leading to lower demand and fewer shoppers, though this also creates great deals on leftover new models and used cars for savvy buyers. August and summer months can also see dips due to vacations, but winter (Jan/Feb) is consistently cited as the slowest period for overall sales volume.
 

How much will dealers come down on a new car?

Unfortunately, it isn't an exact science because it changes from car to car and dealer to dealer. However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb.

Which is the best month to buy a car?

The best months to buy a car are generally October, November, and especially December, due to end-of-year sales goals, new model year arrivals pushing old stock, and holiday incentives like Black Friday, giving you maximum leverage for discounts and 0% financing, with late-month days offering the best deals. Alternatively, shopping in January/February is great for used cars as dealers clear trade-ins from holiday purchases, while quarter-ends (March, June, Sept, Dec) also offer strong sales incentives for hitting targets. 

How much would a $32,000 car payment be?

A $32,000 car payment isn't a single monthly figure; it depends on your loan's interest rate and term, but expect roughly $600-$700 monthly for 60 months (5 years) at typical rates, or more for shorter terms/higher rates. For example, a $32k loan at 6% for 5 years costs about $619/month; at 4% for 60 months, it might be closer to $580-$600, while longer terms or higher rates (like 7-10% for prime borrowers) increase payments, say NerdWallet and Calculator.net show. 

Do wealthy people buy or lease cars?

Wealthy people factor this into their decision-making. If you're planning to keep a car for more than six years, buying almost always makes more financial sense. But if you prefer driving newer cars with warranties and don't mind ongoing payments, leasing might fit your lifestyle better.

Is Dave Ramsey a Trump supporter?

He has blamed politics for what he considers Americans' economic dependence, and has said presidents should do "as little as possible" about the economy. Ramsey supported Donald Trump in the 2024 United States presidential election.

How much would a $70,000 car payment be?

A $70,000 car payment varies significantly but expect roughly $900 to $1,300+ monthly for a loan, depending on term (60-72 months common) and interest rate (e.g., 6-9% APR), or $700-$1,200+ for a lease, factoring in down payments, miles, and money factor, with total auto costs (payment, gas, insurance) potentially reaching $1,000-$1,500+ monthly for a comfortable budget. 

What is a red flag when buying a car?

Use your best judgment; if a car looks or feels wrong, don't buy it. Look out for excessive rust, a worn tailpipe, or illuminated dash lights. During your test drive, pay special attention to how the car handles and sounds. If something's off, ask the seller and double-check the title and history report.

What is the 6000 car rule?

The Section 179 tax deduction gives vehicles under 6,000 pounds that are used for business purposes a deduction cap of $12,400 and $30,500 for vehicles over 6,000 but under 14,000 pounds.

What hidden car costs should I consider?

Beyond the monthly payment, you'll also face years of variable expenses like car insurance, gas, maintenance and taxes, which can spike without warning. By considering these costs before buying a new or used car, you'll be better prepared for the financial ups and downs of hidden car ownership costs.

How much car can I afford making $50,000 a year?

On a $50k salary, you can likely afford a car in the $17,000 to $35,000 range, but it depends heavily on your budget; aim for monthly payments under 10-15% of your take-home pay, with total car expenses (payment, gas, insurance, maintenance) under 20%. A total car price around half your annual income ($25k) is a conservative guideline, while some suggest aiming for a purchase price of $17,500 (35% of gross income) for a cheaper car. 

What is a reasonable car payment?

A reasonable car payment is generally 10-15% of your monthly take-home pay, but ideally, your total car expenses (payment, insurance, gas, maintenance) shouldn't exceed 20% of your net income. A common guideline is to keep the payment itself under 10% of your take-home pay for a comfortable budget, factoring in other costs like fuel and insurance, which can add significant expenses.