While automakers may not be raising prices due to tariffs, dealers may be telling you their prices are increasing.
GREENSBORO, N.C. — We live in a tariff-filled world, but you still have to buy stuff, right? If you are in the market for a new car, experts say you are going to pay more, but that doesn’t mean you should buy less.
“Just because a car is discounted or less expensive, that might mean it’s, that it’s gonna be a less reliable or less satisfying car. You don’t want to spend more money than you wanted to spend on a car that’s also gonna cost you a lot in repairs and make you miserable every time you drive it,” said Keith Barry, Consumer Reports, Senior Auto Writer.
This is the time to do your research and not just buy a car because you like its looks. Consumer Reports is a good resource. Experts say you should read reliability reports, customer satisfaction data and not get focused on just the sticker price. Another piece of advice, don’t box yourself in with just one dealer.
“They share inventory back and forth to get your business across dealerships. So I would, I would not walk in and say ‘I’ll pay anything as long as it’s under 25% of the potential tariff’,” said Joe McCable, CEO, Auto Forecast Solutions.
Not every dealership, even under the same brand, will price all their cars the same. Make a few calls– send a few emails– and get a few quotes before you put your money down.
HAVE YOU HEARD AUTOMAKERS ARE NOT PASSING THE TARIFFS ON TO YOU?
“They could pass that on to the consumer, but to stay competitive and sell more cars than the next guy, they decided to eat the losses or lower the prices or, in certain cases, pause,” said Barry Moody, Executive Editor, Autotrader.
Car makers are hoping to get consumers to buy now. For example, Ford came out with their employee pricing, touting ‘You pay what we pay’ on certain vehicles, but they’re not the only ones with a deal.
“Hyundai, which builds cars in the U.S. has decided they are not going to raise prices. At the same time, its true of Toyota and Honda as well. Chrysler builds the Pacifica van just over the border in Canada, and has decided to pause orders until they figure out how to deal with it and what the impact is going to be. On the other hand, Nissan, which builds some cars in the U.S. and some cars overseas they decided to lower the price on some of their American-made cars,” said Moody.
What automakers say about the big picture of sales and what dealers do when you get on a lot to buy a car in this tariff market can be a little different.