Some market observers believe tariffs may succeed at driving prices down and advise against acting out of fear.
New automotive tariffs are beginning to take effect in April and May. While some anxious buyers are rushing to dealerships to make a purchase, buying today may not necessarily ensure a good deal, several experts said.
Prices for new and used cars have been surging since 2019. U.S. tariffs on auto imports have added a new source of pressure on an already difficult market. Some experts argue that prices will inevitably rise, while others suggest a more cautious approach.
One auto market observer told The Epoch Times that buyers fearful of price hikes shouldn’t make a purchase based on emotions.
Karl Brauer, an executive analyst at car search engine and price aggregation service iSeeCars.com, said in an email that automakers and dealers are both “playing up the potential price increases to increase sales in the near term.”
“Even they don’t know exactly how tariffs will play out in their pricing structure,” Brauer said. “While higher future vehicle prices are possible, they are not guaranteed, and buyers should never be driven by fear or intimidation.”
Charles Benoit, a trade counsel at the Coalition for a Prosperous America, predicts that if the tariffs are successful in driving production back to the United States and pushing consumers to buy American, the increased production capacity will lower automotive prices.
Recent sales data show that consumers are nonetheless more than a little spooked about the potential impacts of a 25 percent tariff on completed automobiles enacted in April.
Through the first week of April, new vehicle sales are up by 22 percent compared with the same time in 2024, according to data shared by Cox Automotive chief economist Jonathan Smoke.
Used car sales in that timeframe are up by 12 percent, he said.
In an April 16 presentation, Smoke said those purchases were likely driven by consumers wanting to beat any tariff-related price hikes. Cox data indicated that the activity was driving down the available supply of both new and used vehicles on dealer lots across America.
According to Cox inventory data, foreign brands such as Lexus, Toyota, Honda, and Subaru were selling the fastest, while the American brands Lincoln, Dodge, and Ram took the longest to sell.
