If you still have a Christmas tree in the corner of your living room, then January could be the perfect time for you to buy a new car or SUV.
Reason is, just as a lot of people have a hard time letting go of the holiday season, a lot of car dealers have loads of excess inventory still sitting on their lots after the ball drops in Times Square on New Year’s Eve — so they often extend their “year-end” deals and incentives well into the new year.
Bad winter weather might also be keeping buyers away from dealer showrooms, which means that those car buyers who do venture out could be rewarded with discounts as high as 9% on 2025 models.
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Why buy a new car in January 2025?
You don’t need to be a rocket scientist to know that steep vehicle deals are advertised heavily in December — just turn on your TV or satellite radio and you’ll be bombarded endlessly with deals and incentives.
Related: The 10 most reliable cars according to Consumer Reports
In fact, according to Edmunds, which publishes information and pricing tools on new and used vehicles, December has historically been known as auto dealers’ “best sales month,” during which they offer the biggest discounts off of manufacturers’ suggested retail prices, or MSRP.
But even if your holiday to-do list didn’t leave you with enough time to shop for a new car, you’re in luck now.
Lower interest rates
January 2025 is an especially good time to buy a new car or SUV simply because most people don’t shell out cash for a new vehicle, and interest rates on auto loans are now lower than they were back in December.
The Federal Reserve slashed the fed funds rate another 25 basis points on December 18, but remember, your credit score also has a lot to do with the interest rate you’ll receive on your auto loan. According to NerdWallet, if your credit score is “good” (660 and above) you could pay just 6.7% APR on a new car in January 2025 — and only around 5% if your credit score is over 780.
Experian Information Solutions, 3rd quarter 2024
Credit scoreAverage APR, new carAverage APR, used car
Exceptional: 781–850
5.08%
7.41%
Very Good: 661–780
6.70%
9.63%
Good: 601–660
9.73%
14.07%
Fair: 501–600
13.00%
18.95%
Poor: 300–500
15.43%
21.55%
These rates are considerably less than the APR for used cars, by the way — 2.9% less if your credit score is over 660, which can add up significantly.
Trump’s tariffs
January 2025 also spells prime buying time for big-ticket items, like electronics and vehicles, due to the looming threat of Trump’s tariffs.
During his Presidential campaign, Donald Trump called tariffs “the most beautiful word in the dictionary” and pledged to add a 25% tax on all imports from Mexico and Canada — and up to 60% on products from China — as soon as he takes office on January 20.
Related: How Hyundai is handling Trump’s tariffs
Since automobiles are built through an intricate supply chain that often crisscrosses national lines, if such tariffs are enacted, most automakers will feel the impact — and you can be sure they’ll be passing these costs on to their consumers.
Plus, economists are already warning that the more things anxious consumers buy, the higher they’ll push prices — which will fuel even more inflation — so right now, basically run, don’t walk, to your nearest showroom.
Just which cars and SUVs are the best deals this January?
What is Consumer Reports? What’s behind their rankings?
Consumer Reports, the time-tested authority on all things automotive, has done it again, this time poring over reams of transaction data in order to identify which vehicle models currently boast significant savings off their 2025 sticker prices.
As an added plus for price-conscious shoppers, each of the 10 vehicles that appear on Consumer Report’s list of “Best Deals” also sells for less than $50,000.
Related: How does Consumer Reports make money? The product-testing nonprofit explained
However, the nonprofit notes that just because a car or SUV is a current steal doesn’t necessarily mean it also carries the “CR recommended” designation.
To earn this distinction, a vehicle must pass CR’s strict testing standards, which put each car and SUV through rigorous testing on its six-mile testing course in Colchester, Connecticut. It evaluates quantitative factors like performance and safety, along with quantitative criteria, like reliability and value.
To make things as simple as possible, we note in this article which vehicle deals also carry the “CR recommended” designation, but you might also want to read up on the org’s lists of most reliable cars and cars with the highest driver satisfaction ratings before you head out to the showroom.
More from Consumer Reports:
You should buy Consumer Reports’ Best Cars of 2024 now—here’s whyUsed cars to avoid buying according to Consumer ReportsThe 10 least dependable cars according to Consumer Reports
The 10 best car deals in January 2025, according to Consumer Reports
This time around, CR’s sole focus was the price that people paid for their vehicles, identifying 10 models with the greatest percentage savings off MSRP in January 2025.
Let’s get to them:
According to Consumer Reports, Nissan’s EV Leaf is a steal in January 2025 with a savings of $3,184 off MSRP.
Nissan
2025 Nissan Leaf: 9% Off
Price Range: $28,140–$36,190MPG: 104 overall
The 2025 BMW i4 currently averages savings of $4,309 off MSRP; it’s also a Consumer Reports’ Recommended pick.
BMW
2025 BMW i4: 8% Off
Price Range: $52,800 – $70,700MPR: 96 overall
**CR Recommended
The 2025 GLA has a current average savings of $3,378 off MSRP.
Dinkun Chen, CC BY-SA 4.0, via Wikimedia Commons
2025 Mercedes-Benz GLA: 8% Off
Price Range: $43,000 – $58,050MPG: 27 overall
With average savings of $3,474 off MSRP, Mercedes-Benz’s GLA is another January deal.
Alexander Migl, CC BY-SA 4.0, via Wikimedia Commons
2025 Mercedes-Benz CLA: 7% Off
The 2025 Toyota Crown currently averages $3,250 off MSRP; it’s also a Consumer Reports’ Recommended vehicle.
Toyota
2025 Toyota Crown: 7% Off
Price Range: $41,440 – $54,990MPG: 42 overall
**CR Recommended
View the original article to see embedded media.
2025 Mercedes-Benz C-Class: 7% Off
Price Range: $48,450 – $86,050MPG: 29 overall
View the original article to see embedded media.
2025 Mercedes-Benz GLB: 6% Off
Price Range: $45,800 – $60,100MPG: 26 overall
The 2025 Subaru Outback boasts an average savings of $2,136 off MSRP; it’s also one of CR’s Recommended vehicles.
Subaru
2025 Subaru Outback: 6% Off
Price Range: $29,010 – $42,910MPG: 24 overall
**CR Recommended
Another CR Recommended vehicle, Audi’s 2025 Q4 E-Tron currently boasts an average savings of $2,553 off MSRP.
Audi
2025 Audi Q4 E-Tron: 5% Off
Price Range: $49,800 – $58,200MPG: 100 overall
**CR Recommended
Buyers saved an average of $1,843 off MSRP when purchasing the 2025 Subaru Forester; it’s also a Consumer Reports’ Recommended Vehicle.
Subaru
Subaru Forester: 5% Off
Price Range: $29,810 – $39,995MPG: 29 overall
**CR Recommended
Related: Veteran fund manager issues dire S&P 500 warning for 2025
