Experts advise against waiting for a bargain on your next car purchase or repair due to recent tariffs. President Trump’s tariffs on steel and aluminum, along with the impending tariffs on imports from Mexico and Canada, are expected to increase costs for vehicles and auto parts in the near future. Analysts warn that prices are likely to rise significantly, with estimates ranging from $4,000 to $12,500 depending on the vehicle, engine type, and country of origin.
The impact of these tariffs is not limited to U.S. car brands, as foreign automakers with production in North America, such as Honda, Toyota, Audi, and BMW, are also expected to raise prices. The tariffs could disrupt the supply chain and affect the availability of North American-built vehicles, leading to potential shortages.
Consumers may face challenges in securing auto loans and could experience a reduction in incentives and offers from manufacturers and dealerships as they adjust to higher costs. Additionally, the prices of used vehicles are expected to increase as lessees hold onto their vehicles longer to avoid purchasing tariff-inflated cars.
Overall, experts urge consumers to act sooner rather than later to avoid potential price hikes and supply chain disruptions in the automotive market.
According to Drury, implementing new tariffs could lead to a reduction in the availability of used vehicles and may recreate the imbalanced market seen during the pandemic. Industry analysts believe that U.S. consumers have limited options to counter the widespread impact of these tariffs, which could create challenges for automakers. Drury recommends that consumers understand the origin of their vehicles and the components used by referring to the American Automobile Labeling Act report published annually by the Transportation Department.
Drury emphasizes the importance of knowing where a vehicle is manufactured and which components are imported versus produced domestically. He suggests that consumers refer to the American Automobile Labeling Act report to gain insight, as not all components of a vehicle are made entirely in the United States. Brinley advises consumers against compromising on their needs to avoid tariff impacts, as it could result in purchasing a vehicle that doesn’t meet their requirements.
While tariff-related price increases are expected across the auto market, Brinley warns against changing purchasing goals solely based on these factors. She recommends that consumers stick to their original shopping criteria and adjust their budget accordingly. Brinley emphasizes the importance of making a purchase that fits one’s lifestyle and needs, rather than solely focusing on tariff implications.
