Connect with us

CELEBRITY

JUST IN: Looming car tariffs have some Americans rushing to dealerships to avoid sticker shock as Donald Trump announced….see more

Published

on

American flags fly outside a car dealership in Alhambra, California

Auto dealerships across the United States could see a jump in customer traffic this week as cost-conscious buyers look to avoid a possible uptick in prices and maintenance costs over the next few years, according to industry analysts.

The growing concern over sticker shock has one cause: President Donald Trump’s 25% tariffs on imported vehicles and parts, which are expected to take effect Thursday. The tariffs will likely impact the cost of cars built in American factories, too, by thousands of dollars. That’s because there is no such thing as an all-American car. All 10.2 million cars built in US factories last year were built with a significant number of imported parts, mainly from Canada and Mexico.

After a surge in car-buying, auto sales can expect to drop while new and used car prices increase, and some models will be eliminated, according to Cox Automotives.

“We have seen this movie before. During COVID, supply became constrained, costs skyrocketed. While the increase in prices this time may be for completely different reasons, it still stands to reason that the market will not bear another significant increase,” Erin Keating, executive analyst at Cox, said Friday in a note.

The cost of a car assembled in North America — such as a Ford, Chrysler, GM or Honda — could increase between $4,000 and $10,000, according to a February estimate from Michigan-based think tank Anderson Economic Group. The price of an electric vehicle, meanwhile, could cost at least $12,000 more.

Miguel Colom, a resident of Bethlehem, Pennsylvania, told CNN that he and his wife plan to buy a Chevy Equinox EV but have felt rushed to make a purchase before May because of the looming tariffs.

“A $12,500 price increase on the vehicle we chose would effectively remove it from consideration, pushing us to make a purchase decision with less financial runway than we had hoped,” he said in an email to CNN. Colom added that he and his wife would be hesitant to buy a new car even if there was a modest price increase.

While one concern has been the price of the cars themselves, the cost of maintenance for older car models has worried some Americans.

American flags fly outside a car dealership in Alhambra, California

Robert Wyatt of New Jersey told CNN he traded in his 9-year-old car, a Mercedes GLE-350, for a new Toyota. He initially planned to buy a car within the next two years but bought it sooner because of Trump’s tariff plans.

“Things start breaking,” he said about his previous vehicle. “I was afraid of that maintenance. With a new vehicle it’s gonna be a couple of years before repairs.”

Sales managers told CNN that they have been fielding more inquiries, though there hasn’t been a dramatic jump in sales just yet. Tom Tatich, the general manager at a Toyota dealership in Marysville, Washington, said customers are uneasy about how car prices will look down the road.

Tatich says high demand and a limited supply have been an ongoing issue at Toyota. He believes the demand will remain consistent once tariffs take effect and says customers have tried to lock in prices for cars yet to arrive.

“There are people wanting to ensure the prices quoted on inbound cars won’t change,” he explained.

A lack of reassurances from Trump has done little to ease uncertainty. On Saturday, Trump told NBC News’ Kristen Welker in a phone interview that he encourages price increases on foreign cars because “if the prices on foreign cars go up, they’re going to buy American cars.”
Fewer cars, higher prices

Automakers are more likely to cut back on production while they wait to see whether Trump’s tariffs will stick, which would then lead to inventory declines. With a lower supply, dealerships will raise their prices in the coming months. There are also industry concerns about a decline in the number of customers.

Trump has repeatedly floated tariff proposals since taking office, with the first slate on Canada and Mexico initially planned for early February — only to be delayed a month into March, and again into early April. He later announced the new 25% tariffs on all car imports and car parts, such as engines and transmissions.

Although Trump has said he won’t delay tariffs again for automakers, he could change his mind before or after tariffs take effect. Automakers tiptoeing around that uncertainty by delaying production and buyers who hold on to their vehicles by taking a wait-and-see approach to tariffs means reduced supply and increased prices.

In Wisconsin, Doug Schoepp, owner of Schoepp Motors, said his dealership has about 500 available cars, which should last two to three months. He told CNN he is unsure whether Trump’s tariff policies will be confirmed Thursday or if the president will loosen up on his promises. If tariffs remain, everyone will pay more, Schoepp added.

“The car business will definitely hurt if the tariffs go in place. If (Trump) sticks to his guns, yeah, new cars could go up as much as 25%. Used cars will go up 10% at minimum,” Schoepp said.

Taylor and Travis Kelce smilling
CELEBRITY32 minutes ago

WATCH: Travis Kelce and Taylor Swift Can’t Keep Their Hands Off Each Other During a Romantic Outing at the US Open Miami, with Taylor Whispering, ‘He’s My Favorite Person to Be With,’ Confirming They’re Still the Hottest Celebrity Couple Around

Taylor and Travis at night club
CELEBRITY41 minutes ago

Travis Kelce isn’t just playing the game—he’s rewriting the rules. In a move straight out of a love story, the NFL star has cooked up a heartfelt plan to seal his bond with Taylor Swift forever. Insiders spill the details on the smitten gesture that’s bound to send Swifties into an emotional whirlwind… Read more below 

Travis K and Taylor S
CELEBRITY7 hours ago

BREAKING NEWS: Taylor Swift and Travis Kelce ‘Happy Place’ House-Hunting to ‘Settle Down’ Outside Kansas City amid Split and Retirement rumor

Taylor-Swift and Travis-Kelce
CELEBRITY7 hours ago

JUST IN: Believe it not Taylor Swift and Travis Kelce planning major move from Kansas City after Retirement rumour

Rafael Nadal and his wife Mery Xisca Perello
CELEBRITY8 hours ago

BREAKING NEWS: Rafael Nadal and Mery Xisca Perello are happy to announce the birth of their second baby, marking the beginning of the countdown to their growing family after his….see more

Taylor Swift Pregnacy,
CELEBRITY8 hours ago

NOW OR NEVER: 2-minutes ago Taylor Swift Announce the Truth about her Pregnancy Amid Reports She Wants to ‘Start a Family’ With Travis Kelce

American flags fly outside a car dealership in Alhambra, California
CELEBRITY12 hours ago

JUST IN: Looming car tariffs have some Americans rushing to dealerships to avoid sticker shock as Donald Trump announced….see more

Travis Kelce mansion
CELEBRITY12 hours ago

JUST IN: 3 minutes ago Fox News has just reported that Taylor Swift has urgently left her mansion, and has reportedly flown to Travis Kelce’s $6 million mansion in Kansas City. The sudden decision has sparked widespread curiosity and concern among fans. According to reports, the Urgent call prompted her immediate departure. Upon her arrival at Kelce’s mansion to ‘confirm the news’, a moving truck was seen leaving the property, adding to the speculation about the nature of the situation.The reason behind Swift’s urgent visit and the presence of the moving truck remains unclear.

Taylor and Travis at night club
CELEBRITY2 weeks ago

Video of Taylor Swift and Travis Kelce enjoying low-key NYC date night during ‘precious’ work hiatus

Taylor and Travis at night club
CELEBRITY2 weeks ago

Travis Kelce convinced Taylor Swift and also proved himself an ‘OG Swiftie’ with key New Heights comment that Swifties can’t stop talking about…..see more

Justin Bieber and Taylor Swift at younger age
CELEBRITY2 weeks ago

JUST IN: Taylor Swift dragged into Justin Bieber drama as he seemingly trolls her with ‘REVENGE’ song

travis kelce sad,
CELEBRITY2 weeks ago

It wasn’t Taylor Swift…… Travis Kelce’s teammate Reveals who really convinced Chiefs star not to retire after Superbowl

Copyright © 2024 USApixell