For buyers who have been waiting to make a purchase, the looming threat of President-elect Donald Trump imposing high tariffs on imported vehicles and parts may prompt them to act sooner rather than later. Concerns about carmakers passing on the costs of tariffs to consumers could be a motivating factor in their decision-making process.
According to industry expert Drury, those consumers who are not under immediate pressure to buy could benefit from automakers’ efforts to sell off outgoing model-year inventory, potentially offering attractive deals to kick off the new year.
In terms of car buying advice for 2025, there are several key considerations to keep in mind. Jominy advises against putting any money down when leasing a vehicle, cautioning that in the event of an accident where the car is totaled, any upfront deposit may be lost. Researching new safety features and technology in modern vehicles is also emphasized, highlighting the potential benefits of investing in a newer model despite the higher cost.
Jominy stresses the importance of conducting thorough research before visiting a dealership. This includes not only studying the features of the vehicle but also understanding your own credit rating and securing a loan with the best possible interest rate in advance. Credit unions are recommended for competitive financing deals, as dealers often make a profit from arranging financing and may not offer the best rates upfront.
Geographical flexibility is another strategy suggested by Jominy, noting that dealers in certain regions may offer better deals than others due to varying demand. For example, during supply chain disruptions in 2022, dealers in the Plains states and Upper Midwest were reportedly selling below MSRP while dealers in other regions were charging higher prices.
In the face of potential tariffs driving up prices, affordability remains a primary concern in the automotive market. Jominy predicts that discussions around affordability will persist in 2025, especially if monthly payments do not align with wage growth. He highlights the importance of monitoring changes in pricing and remaining informed about market trends to make informed purchasing decisions.
For those hesitant to travel for better deals, utilizing online resources to research and potentially purchase a vehicle remotely is recommended. Jominy underscores the impact of supply and demand dynamics on pricing, noting that dealers in regions with fewer buyers may offer more competitive pricing compared to areas with higher demand.
As the automotive industry continues to navigate economic uncertainties and potential policy changes, staying informed and proactive in car buying decisions is crucial. By following expert advice and conducting thorough research, consumers can make informed choices that align with their financial goals and priorities in the evolving market landscape.
Contact Jamie L. LaReau at jlareau@freepress.com. Follow her on Twitter @jlareauan. This article originally appeared on Detroit Free Press: Not just MSRP: Why can’t we afford a new car now? What experts say.
