A brief glance at the 2025 auto market

Let's face it-buying a car in 2025 isn't quite the joyride it used to be. With prices climbing, interest rates fluctuating, and dealership "surprises" showing up like plot twists in a drama series, navigating the auto market takes more than just kicking a few tires. But don't worry, University Credit Union (UCU) is here to help you steer through the chaos with confidence, clarity, and that first big drive home. 

What's the deal with prices? 

Spoiler alert: cars are expensive. The average price of a new vehicle is now nearly $49,000, up more than $10,000 from just a few years ago. That's not a typo, that's reality. Blame it on supply chain headaches, high demand, or those 25% tariffs on imported cars that aren't part of the U.S.-Mexico-Canada agreement. Whatever the cause, affordable options are in short supply. At this point, the phrase "entry-level car" might as well mean "good luck out there." 

Used cars aren't offering much relief either. The average listing is hovering around $25,000, and dealership markups are alive and well. One recent report found buyers were hit with an average of $640 in unexpected fees-because apparently "surprise" charges are the new (or old?) dealership handshake. Translation: bring a calculator and maybe a stress ball. 

The real cost of financing 

Here's where things get serious-and where UCU can make a real difference. Your credit score plays a big role in the interest rate you'll be offered. Super-prime borrowers (781 and above) are seeing rates as low as 4.7% for new cars, while those with scores in the low 500s might see rates that feel more like credit card APRs than car loans. 

At UCU, we're not trying to sell you something you can't afford. We're here to help you finance something that fits your budget and your life. That's why our auto loan rates start as low as 5.24% APR, with flexible term lengths and no payments for up to 90 days. It's our way of helping you breathe a little easier during the car-buying process-because the only thing worse than a high car payment is realizing you also need new tires two weeks later. 

Don't just shop for a car-Shop for your loan 

You wouldn't walk into a dealership without knowing what kind of car you want (hopefully). So why would you accept whatever loan terms they throw at you? Getting pre-approved with UCU gives you clarity and leverage. It tells the dealership, "I've done my homework," which is just a polite way of saying, "Nice try, but I'm not falling for the ‘this rate is only good today' routine." 

When you apply for a pre-approval with us, you'll know what you can afford, what your payments will look like, and how much interest you'll be paying over the life of the loan. Spoiler alert: it's usually less than what you'd pay with third-party financing. 

Get smarter before you sign 

Cars are complicated, but car loans don't have to be. At UCU, we provide members with financial education tools designed to take the mystery (and the misery) out of the process. From online articles and budget calculators to live webinars and expert guidance, we've got you covered. 

Not sure what a loan term means? Confused by "GAP insurance"? Wondering why APR is more important than monthly payment? We'll walk you through it all-no jargon, no judgment. Because financial education shouldn't feel like taking a pop quiz in a class you never signed up for. 

You've got this-Because you've got UCU 

Let's be honest, the auto market might be running a little hot, but that doesn't mean you have to get burned. Whether you're shopping for your first car, your family's next SUV, or refinancing that convertible you swore you'd only drive on weekends, UCU is here to help you make the smartest, most informed choice possible. 

Visit ucu.org today to explore our auto loan options, access our learning center, and get pre-approved. In this market, knowledge is horsepower-and we're ready to hand you the keys. Watch this short video that outlines the whole auto buying process.

Sources for a deeper dive (Remember: do your homework-it makes all the difference!): 

• Barron's. (2025). Car prices new and used continue to rise. 
• MarketWatch. (2025). Used car buyers face unexpected dealer fees. 
• NerdWallet. (2025). Auto loan rates by credit score.
• CarEdge. (2025). Used car price trends for 2025.
• University Credit Union. (2025). Auto loan rates and financial education tools.