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Ahead of Trump’s Auto Tariffs, Are U.S. Consumers Rushing to Buy Cars?
In response to the looming 25% tariff threat, some American car buyers have been hastily making purchases before the levies take effect.
According to industry experts, this phenomenon is not unexpected, as consumers are likely to start shopping for vehicles sooner rather than later, considering the impending impact on vehicle prices. Vehicles already on dealers’ lots remain unaffected by the tariffs, offering a stable option for those in the market for a new car.
“I would assume that people would have gotten started researching to see what things look like now,” stated Erin Keating, executive analyst at Cox Automotive. This sentiment is reflected in recent data from Kelley Blue Book, Autotrader, and Dealer.com, which revealed a surge in online car shopping activity since the announcement of 25% auto tariffs.
On Thursday, Kelly Blue Book saw an unprecedented 27% increase in car visits, followed by a 54% rise in new car inquiries on Dealer.com the next day. Used car leads on Auto Trader also experienced a noticeable uptick of 16%.
As experts suggest, this surge in demand is likely driven by concerns over potential price hikes due to the tariffs. In light of the expected increase in prices, it may be particularly crucial for lower-income consumers to act swiftly and secure their desired vehicle before prices become unsustainable.
“If you need car and can afford it, get out there now,” advises Aaron Bragman, Detroit bureau chief at Cars.com, emphasizing that such a move would not only protect against potential price increases but also avoid an inventory crunch that may arise in the future.
Source: https://www.cbsnews.com/news/trump-auto-tariffs-consumers-rush-to-buy/
