Trump’s tariffs have forced auto buyers to rethink their strategies. Know these before you make a decision:
1. Wallets out! It’s time to hit the dealerships before these auto taxes affect the new prices.
2. The trend has seen stagnant pricing since March, which is expected to rise soon. It is still a bit higher than last year, but it’s better to buy now because it is going to be higher soon
Buckle up because the change is going to be massive! If we scale it, the change will be equivalent to the fluctuations of the war or the COVID-19 pandemic. So, if you find yourself asking, “Is now a good time to buy a car? “When will used car prices drop? “, then you’re at the right place.
What to Expect of the Auto Taxes as a New Shopper?
President Trump’s administration initiated a 25% tariff on numerous imported vehicles starting April 3rd, potentially causing significant shifts in U.S. car prices; however, subsequent White House announcements on April 29th softened the impact by adjusting planned tariffs on auto parts and offering some relief on aluminum and steel tariffs, thus creating a complex and evolving situation for the American automotive market.
However, every vehicle made in North America uses parts made in other countries, so prices will increase.
What to Expect in the Used Car Market?
Listen up, bargain hunters and vintage vehicle dreamers! If you’re on the prowl for an older car and your wallet’s singing a tune under $15,000, the pickings are slim. It’s like trying to find a hidden gem – dealerships are holding onto these affordable, seasoned road warriors for a mere 28 days before they’re snatched up! So, are used car prices going down? There’s hardly any chance of used car prices dropping, as the car shortage will be a real problem soon.
Hold on, there’s a plot twist! Remember those potential new auto taxes we talked about? If those kick in and new car prices jump, guess where everyone who wanted a shiny new ride but can’t afford it anymore will flock? Straight to the used car lots, creating a stampede for the already scarce, affordable options.
Not only are fewer of these budget-friendly beauties around, but more people are suddenly in the market for them. Plus, folks are clinging to their current cars like they’re gold, making the pool of older trade-ins even smaller. Blame it on the years after the 2008 shake-up when fewer new cars were even made – that means fewer older, higher-mileage options are even out there to be resold now.
So, the sweet spot right now? If you’re looking used, the real action (and more choices) is in that $15,000 to $30,000 range. Finding that sub-$15,000 gem? Get ready to be quick and maybe a little lucky after the imposition of Trump Tariffs– it’s a seller’s market for those budget-friendly classics!
