CAR buyers across the US are racing to dealerships in fear of looming price hikes that will see the cost of vehicles skyrocket.
The clock is ticking as some vehicles are expected to cost nearly $10,000 more in the coming months.
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The urgency stems from President Trump’s potential 25% tariff on cars imported from Mexico and Canada.
According to an analysis from the Anderson Economic Group, manufacturing costs for a crossover utility vehicle could rise by at least $4,000, while for larger SUVs, costs could increase by roughly $9,000 due to the tariffs.
Pickup trucks could also see a similar hike of $8,000.
Electric vehicles would face the largest cost increases, with prices rising by up to $12,000, Fox News reported.
With only three months of inventory available at dealerships, the pressure to act quickly is mounting.
In Walnut Creek, California, Matthew Mitchell wasted no time.
“We’re going this weekend,” he told his wife after hearing about the tariffs.
Mitchell rushed to secure a deal on a 2019 Toyota Camry before prices could jump, he told Reuters.
Mitchell is among buyers who rushed their car purchases, worried Trump’s tariff threats would cause prices to soar.
The anxiety isn’t just in California.
Buyers across the US are speeding up purchases, believing the tariff threat could drive up costs.
The tariffs are still on hold, but uncertainty has sparked a buying frenzy.
From February 16 to 22, car searches on Cars.com spiked 9%.
And the car industry is bracing for impact.
Most dealers had about 96 days’ worth of vehicles in February, a 26% increase from earlier in the year.
Dealerships are seeing an increase in traffic, with some even using the tariff threat as a marketing tool.
One Connecticut Subaru dealer’s website banner said, “Save now before tariffs drive prices up!”
“We’ve got the cars; now we just need the buyers,” said Jim Seavitt, a Ford dealer in Dearborn, Michigan.
Dealership Tips
Here are some expert tips when purchasing a car from a dealership lot:
- 1. Set your price: Ensure you’ve calculated your monthly budget before going to the lot. You should include the car’s loan payment, insurance costs, fuel, and regular maintenance.
- 2. Research: Make sure you know which cars you’re interested in test driving before you reach the dealership.
- 3. Pre-approval: Secure financing before you go to the dealership. Dealerships may give you a better interest rate if they are competing with an outside bank.
- 4. Test away: Get behind the wheel before making any payments. A car purchase will be worth thousands of dollars – drivers should ensure they like the drivetrain, steering feel, and comfort of the car before taking it off the lot
- 5. Haggle: Drivers should always try to negotiate the price. There are so many good cars on the American market – buyers have a strong hand when negotiating price.
Source: Kelley Blue Book
“People start hearing about the tariffs, and they’re probably going to want to buy.”
In Calgary, Canada, it led Darby Madalena to buy a 2025 Subaru Forester a year ahead of schedule, spurred by the tariff talks.
INTEREST WOES
In January, the average price of a vehicle hit $48,641, a 30% increase from 2019’s $37,348, according to Cox Automotive.
For some, the worry isn’t just about tariffs but rising interest rates as well.
Saud Ansari, from Cleveland, Ohio, sealed a deal on a 2025 Toyota Sienna last year, aware of the potential for both tariffs and higher financing costs.
“I’m glad to have it out of the way,” said Ansari, relieved to finalize the purchase before the uncertainty hit full force.
“We had to be smart about it.”
