Beat the Tariff Clock with Ed Voyles CDJR in Marietta, GA
Whether it’s a home, a car, RV, or any other significant purchase; timing is everything! While certain times of the year, like the beginning of the New Year, are notorious for better deals; the latest tariffs are slated to change the status quo and increase what you can expect to pay for new and used vehicles. Let’s take a closer look at how the global legislative environment is projected to increase the average cost of a vehicle by as much as $7,000 in the U.S.
Why Will the Tariffs Cause Automotive Prices to Rise?
If you’re considering the purchase of a vehicle, you can do yourself a huge favor and take advantage of today’s lower prices. American auto manufacturers are holistically looking forward to downward financial forecasts due to the tariffs. In short, most experts expect the tariffs will lead to a further reduction in the number of auto manufacturing jobs, lower wages, as well as a lower investment in the future. And to you and other consumers, this almost certainly means higher auto prices on new as well as used vehicles.
President Trump has suggested a substantial 25% tariff on all imported trucks, vans, SUVs, and automobiles. If passed, these tariffs will impact us all – primarily through the spike in the price of imported auto parts. Unfortunately, most experts expect anywhere between 75% to 100% of the increase will be passed on directly to you in the form of higher new car costs.
How Will the Tariffs Impact New Domestic Vehicles?
As we previously mentioned, the tariffs will not only levy a tax on imported vehicles – but on imported parts, which is where it stands to have the largest impact on us all. Virtually every vehicle made in the U.S. will have parts shipped back and forth across the border several times. So even if a vehicle is manufactured in the U.S., the vehicle will almost certainly have imported parts.
As a result, tariffs could have a monumental impact. The Peterson Institute for International Economics suggests the increase could be as much as $2,000 for a compact car and up to a $7,000 increase on a luxury SUV.
Used Car Prices May Increase as Well!
Surprisingly, used car prices are not safe from the impact of the projected tariffs. Because of the higher cost of new vehicles, owners will be more inclined to hold onto their current vehicles. This consumer mindset means fewer used vehicles will be available. And as a general economic principle of supply and demand, the scarcity of quality used vehicles will cause prices to rise on used vehicles.
Contact Ed Voyles CDJR for the Best Prices on New & Used Vehicles
While we may not be able to predict the future, most non-partisan experts agree the price of new and used vehicles will increase if the tariffs are enacted. This means you if you’ve been considering a new or used vehicle, you can save thousands by purchasing before the tariffs are enacted. And the experts at Ed Voyles CDJR in Marietta can help. We’ll listen to your unique needs and guide you to the best new or used automotive solution.