Best New Car Incentives and Lease Deals for July 2025 (2025)

Last Updated: Jul 17, 2025

Those looking to buy or lease a new car this July are in a mixed bag, mainly due to tariff uncertainty. Some vehicles will have MUCH BETTER deals compared to last year due to inventories and incentives having increased across the board with larger rebates, better 0% finance deals and better lease deals... READ MORE ⌄

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... However, some manufacturers have reduced production in North America because of the tariff situation. Nobody really knows how much this will affect new car prices, but some analysts are expecting increases of 1-3% this month on models that are most affected.

Used car prices have come down a bit, but I do expect a shortage of late-model used cars (2 to 3 years old) entering the market for the next year or so. This is due to the drop in leasing 2-3 years ago due to the supply shortages. Now we're starting to see the after-effects of that. The one bright spot are 2-3 year old electric vehicles, which are in some cases more affordable than their gas counterparts.

If you're looking to buy or lease a new car, I would try to time it towards the end of the month as dealers try to meet end of month sales goals and should be more likely to negotiate on price.

It had become normal over the past couple of years for new car shoppers to be paying MSRP and even higher for vehicles. Besides a handful of very popular models, we're thankfully no longer seeing this, with some models offering upwards of 20% off MSRP now. Remember, getting a great deal foremost depends on the model, which is why you should really consider more than one vehicle when shopping for a deal. By getting bids from multiple dealers, you increase your chance of finding a "desperate" dealer that is willing to negotiate.

Adding uncertainty to all of this is ongoing world conflict and high interest rates. Interest rates have made monthly payments much higher, which makes affordability of news cars much harder, especially luxury cars. On top of this, lenders are becoming more strict with who they loan money to. Rejection rates for auto loans are at all-time highs, especially car shoppers with credit scores below 690 - it's a great time to be a cash buyer!

Although the Fed has started the process of lowering rates, interest rates are still anywhere from 6 - 10% on new cars even if you have good credit, but many manufacturers are offering low interest loans - even 0% financing on some vehicles in July. We've actually seen an uptick in finance deals being offered, which seems to be one of the major ways manufacturers are offering incentives right now. Many have also introduced loyalty and conquest bonuses, so if you do have a lease return coming up, this could put an extra $1,000 to $2,000 in your pocket.

My advice right now: start compiling price bids, many models are offering great deals this month, but if you have the luxury of waiting, the deals should get even better as we move into summer (when dealers will start becoming desperate to move any remaining leftover 2024 models, and hopefully interest rates start moving down). We should continue to see increases in manufacturer incentives this as dealers and manufacturers are forced to compete again.

(Note: incentives can vary greatly by region; these figures may not be accurate in your local area. Always verify with your local dealers)