Starting from a bargain in the purchase of your next car or an important repair? They don’t, experts say.
The 25% rates of President Donald Trump on steel and aluminum went out last week, and the postponement of a month that offered American car manufacturers of their 25% tariffs on imports from Mexico and Canada ends on April 2, threatening to increase the costs of vehicles and auto parts in the coming weeks.
“There is no way to see a better discount if you wait three months,” said Ivan Dury, director of Insights in Edmunds. “That is guaranteed.”
Concerns about imminent price increases occur just when the automotive market shows signs of stabilization. The last consumer price index showed that the new vehicle costs fell 0.3% last month compared to the previous year and those of used cars and trucks 0.8% higher during the same period, both much lower than the annual inflation rate of 2.8% in general.
These trends are likely to last, analysts warn. Tariffs are expected to increase car costs at $ 4,000 to $ 12,500 depending on the vehicle, the type of motor and the country of origin, according to Anderson Economic Group, a consultancy that represents manufacturers of car and distributors.
It is not just the brands of American cars such as those made by Ford, General Motors or the producer of Jeep Stellantis that will be affected, the group said. Honda, Toyota, Audi and BMW are among foreign car manufacturers with wide production in North America that could also increase prices.
“Potentially we are undermining one of the most important elements of the American economy, which is our ability to manufacture products in the United States using Canada pieces [and] Mexico, “said Patrick Anderson, the CEO and founder of the firm, on the White House commercial policies.
A White House spokesman did not immediately respond to a request for comments.
Many drivers are already stressed by possible car purchases. The participation of consumers who expect to be rejected by cars loans reached 33.5% in the latest New York Federal Reserve survey, the highest in their 12 years of history. People in the market of new vehicles built in North America could also face an availability cruise, experts say. A recent forecast of the global M&P mobility predicted regional production could fall by up to 20,000 units per day within a week that Canada and Mexico’s tariffs enter into force.
“If you have a tariff situation that changes your contributions in the vehicle, you will naturally want to find that mixture, between the content of the vehicle that is more attractive to consumers and know that it will cost them more,” said Stephanie Brinley, an automotive analyst at S&P Global Mobility. For car manufacturers, he said, the question is: “How does margins protect and how do you work?”
Many of the advantages available for possible buyers could be dried soon, experts said, as manufacturers and dealers begin to cut reimbursements, financing promotions and other offers while looking to compensate for higher costs.
“You could even see incentives that are withdrawn, as an cash return offer of $ 3,000 that could disappear immediately, during the night,” said Dury.
He and Anderson said they hope that the price of used vehicles will also partly increase because automatic tenants distrust inflated vehicles with rates will cling to their wheels leased for longer. While that would increase the values of well -kept vehicles already on the road, it would also squeeze the inventories of used vehicles, said Dury, potentially recreating the market of the unequal pandemic era.
There is not much that American consumers can do to mitigate the domain effects, industry analysts said, given the basic nature of tariffs and the cold they threaten to create among car manufacturers. But it will help to know where your vehicle is done and what components are imported in the United States manufactured, said Dury. He suggested that consumers maintain the report of the American Automobile Labeling Law, a document that the Department of Transportation publishes annually that enumerates each vehicle model together with the origins of its composition.
“He should give a guide, because it cannot be assumed that the badge in the hood coincides with his expectations [of] Where is it done, “said Dury.
Brinley warned consumers not to try to “play” rates to compromise what they really need. While it is widely expected that commercial tariffs boost prices increases throughout the car market, completely rewritten their goals for such an important purchase could end up costing more, he said.
“Buying something that does not fit your life is the incorrect size and does not work for you because it perceives that the tariff impacts are lower may not improve your life,” Brinley said.
You may have to adjust your budget, but “somehow,” he said, “I bought as it has always done.”
