The impact of tariffs depends on the CAR model as they rely more on imported parts than on other parts. But rather than significantly increasing the prices of certain vehicles, the industry is likely to increase to all types “like peanut butter” to smooth out price increases, says Tyson Jominy, vice president of data and analytics at market research firm JD Power. Anderson said the manufacturers would “are likely to cut back” the much more expensive model.
What if you want to buy a car this year?
Many remain uncertain, such as whether delayed tariffs will actually take effect, and if so, how long they will stay. “We're not literally thinking,” said Joseph Yun, a consumer insight analyst at the automotive site edmunds.com. So, if a new car wasn't on your radar, you don't need to hurry up and buy it, he said. The car is an expensive purchase. He said it's important to take the time to research the models and get the one that suits your needs and budget. “Don't panic with a car worth $47,000.”
Still, if you're planning on shopping for a new car in the next few months anyway and a model with the features of your choice becomes available, it might make sense to buy it earlier than later. Jennifer Newman, editor-in-chief of online car shopping site Cars.com, said new cars are in stock and tariffs should not affect vehicles already sitting in the sales lot. “If you're thinking about buying a car, you need to shop now,” she said.
Also, if you're interested in electric vehicles or plug-in hybrids, if you buy or lease a new one, you'll be eligible for a federal tax credit of up to $7,500, so this could be a good time to consider. (The Trump administration says it aims to cut or eliminate credits, but Trump made a TV appearance last week to announce he's buying a Tesla, but he's confirmed that the EV is really “suitable for you,” said Jake Fisher, senior director of consumer reporting. He will weigh factors such as how much you normally drive, and whether you have access to a charger at home or at work.
Is a used car a better option?
Used cars are expected to be even more expensive. Dealers are anticipating potential disruptions in the new car pipeline, and are likely to boost used car purchases and stock lots, Jominy said.
