5 Exciting Automotive Trends to Look For in the New Year

The automotive industry has a long history of innovation, with every new year seeming to bring unique and historic developments. As 2025 gets rolling, consumers have their eye on everything from car price trends to the year's hottest exterior color palettes.

What does the new year have in store for car buyers and automotive enthusiasts? These five emerging and evolving trends offer an exciting glimpse.

Trend #1: Prices may finally turn in the buyer's favor

The pandemic wreaked havoc on the automotive market. Prices soared out of control amid a supply crunch and an inflationary macroeconomic environment. 

A February 2024 analysis by Texas A&M University found that new car prices rose by 11.7% and used car prices skyrocketed by 37.2% from December 2020–December 2021. Yet, overall consumer inflation was 7.1% during that time frame. That means new and used car prices outpaced general inflation by 64.7% and 524% respectively. Ouch.

Motorists have been feeling the pinch ever since. However, 2025 looks like it might finally deliver some price relief.

Where are new car prices heading?

Kelley Blue Book (KBB) began tracking a flattening trend in new car prices in the second half of 2023, with industry experts generally agreeing that prices seemed to hit a post-pandemic ceiling.

Auto dealers largely maintained prices at or near that ceiling in 2024, but a combination of falling interest rates and strong manufacturer incentives finally look to be turning new car price trends in favor of buyers. 

In November 2024, CarEdge analytics experts predicted that the average price of a new vehicle will edge downwards as 2025 progresses. By this time next year, CarEdge expects that average new car sale prices will have fallen by about 3% to 5%.

Many wild cards and X-factors could complicate that outlook, though, and potential tariffs are one of them. If the incoming presidential administration does impose tariffs on imported vehicles, domestic manufacturers could benefit … or prices could soar. 

Nobody really knows where this situation is heading or what its impacts might be, so keep a close eye on it if you're in the market to buy.

Will pre-owned vehicle prices finally start to fall?

The picture is also unclear in the pre-owned vehicle market, where complex dynamics make for a murky outlook regarding used car price trends.

On one hand, falling interest rates and manufacturer incentives are pushing many would-be buyers toward new cars, weakening demand for pre-owned vehicles. On the other, it's also possible that many buyers have been waiting for interest rate relief before buying a pre-owned vehicle. With that relief continuing, used car dealers could see a strong uptick in demand.

What will happen? It's anybody's guess, but the experts think used car prices will stay flat near their record highs in 2025.

Trend #2: EVs will continue chipping away at ICE dominance

Throughout 2024, media outlets reported on the slowdown in EV sales trends. Some commentators argued that the market action reflected growing consumer concerns about the limitations of EVs. Others believe the slowdown was a natural, expected result following years of unsustainable growth.

Generally speaking, experts on EV trends believe sales growth could remain stunted in the short term as the market segment faces headwinds. In August 2024, J.D. Power revised its outlook for EV market share growth, adjusting it down. Noting diminished global momentum, Goldman Sachs also believes EV sales will weaken in the near term.

However, EV industry trends also seem to have a silver lining: J.D. Power thinks EV market share will quadruple from current levels by 2030 and analysts from Forbes believe that EVs remain on track to outnumber ICE vehicles by 2036.

Consumers actually stand to benefit from softening global demand for EVs. As growth in EV market share slumps, manufacturers and dealers are left with excess inventory and prices are already coming down as a result.

Trend #3: Popular body styles and manufacturers

In July 2024, Road & Track looked at registration data from Experian to create a state-by-state picture of the most popular cars in the country by region. Here are three takeaways from their analysis:

• Pickup trucks were the top-selling vehicle in 19 of 50 states. They're especially popular in rural and remote locations.
   
• Crossover SUVs continue to enjoy widespread popularity and were the top-selling vehicle in 21 states … not counting the genre-bending Tesla Model Y.
   
• Traditional sedans led all body styles in only a few destinations, but they generally remain popular with buyers.

Among automakers, Toyota and Tesla were the two most common leaders: Toyotas were the top-selling vehicle in 16 states, while Teslas led in 10 states with the Model Y representing the company's best-selling offering in every case.

Look for similar trends to continue in 2025.

Trend #4: Classic car colors will continue to dominate

The auto industry has undergone enormous change over past decades, but one thing that's remained fairly constant is consumer's preference for classic colors. While global manufacturers continue to expand their support for bold, splashy, and unique hues, four longtime mainstays look poised to continue their industry-leading run.

These four classic colors include white, black, gray, and silver. According to J.D. Power, these four colors have been neck-and-neck atop the car color popularity list for many years and they'll dominate 2025 car color trends, too.

Trend #5: Level 2 vehicle automation might finally reach the mainstream

For much of the past decade, it seems like autonomous vehicles have been on the verge of inundating the roads but never quite manage to catch on as expected. That could change in 2025, with Level 2 automation finally appearing ready to make its big breakthrough.

Level 2 is classified as partial driving automation, with human drivers remaining in primary control of the vehicle while computerized systems assist with acceleration, braking, and steering.

In 2024, automakers including Audi, BMW, Ford, GM, Infiniti, Kia, Mercedes-Benz, Nissan, Tesla, and Volvo sold vehicles with Level 2 auto-pilot features. With microchip and connectivity technologies continuing to advance, 2025 looks to introduce even more Level 2 vehicles to the road and these assisted-driving technologies could soon shift from futuristic to completely normalized.

Self-driving taxi and ridesharing services have also seen explosive growth in several U.S. cities, with companies like Waymo leading the way. Waymo is currently operating in San Francisco, Los Angeles, and Phoenix, with more major markets on the horizon. 

In October 2025, Waymo completed a Series C capital raise worth $5.6 billion. This makes it likely that the company's self-driving taxis will soon be on their way to a city near you.   

Be ready for anything that comes your car's way in 2025

No matter where auto industry trends end up heading in 2025, one thing is for sure: drivers are going to need premium-quality parts and accessories to keep their vehicles safe and strong. With a high-performance lineup of wiper blades, antifreeze coolant, and exterior and interior lighting solutions, PEAK Auto is here to help meet that demand.

Like the wider automotive industry, PEAK Auto is always innovating. Forward thinking is a value you can see across our product lines, with exciting new examples including:

• PEAK Titanium antifreeze: This proprietary high-performance formula offers advanced protection from corrosion and rust.
   
• PEAK ECOSHIELD coolant: We're working to make our products more sustainable and this environmentally friendly coolant is a great example.
   
• PEAK Silicone Platinum wiper blades: Lasting up to four times longer than conventional wipers, these premium blades represent our best all-season visibility technology.

Keep an eye on PEAK Auto throughout 2025. That way, you'll be the first to know when we add more new products to our exciting lineup.