- Tariffs are already causing buyers to adjust their car purchasing plans, a new report from Edmunds shows.
- Though most prices haven’t been affected by tariffs yet, analysts and customers are both expecting hikes.
- 37% of buyers say tariffs make them want to purchase cars sooner rather than later.
The impact of President Donald Trump’s 25% tariff on auto imports hasn’t been fully felt yet, but it’s already adjusting consumer behavior. A full 37% of new-car shoppers say they want to move up their car purchase to avoid tariff impacts, while 25% say they’ll be delaying their own purchases, according to new data from car-buying firm Edmunds.
This tracks with another key insight: Most buyers are expecting tariffs to impact their options. While 31% think tariffs will “somewhat be a factor” in their upcoming purchase, 44% think they “will definitely be a factor.” That’s despite the fact that, per Edmunds, tariffs have not dramatically reshaped the market yet.
“While there have been some targeted moves—such as automakers adjusting suggested retail pricing on select models or limiting availability of certain vehicles—these actions haven’t yet translated into widespread disruptions,” Jessica Caldwell, assistant vice president of insights at Edmunds, said in the study.
In fact, the biggest change we’ve seen so far is increased sales for many automakers. With consumers anxious over tariffs, many automakers used it as an opportunity to quickly offload existing inventory before jacking up their own prices. In the longer term, those price hikes are coming, but they haven’t hit yet.
The average transaction price for a new vehicle in April only climbed 2.2% over the average transaction price in April 2024, which is a relatively normal month. Yet sales volumes are up, according to the automakers who report data on a month-by-month basis, as cited by CNBC.
Clearly, it’s a weird time to be buying or selling a car. Everyone knows a big shake-up is coming, but no one seems to know when it will arrive in force. Nobody wants to be the first company to raise all of its prices, but nobody has the profit margin to eat these tariffs for long.
Contact the author: Mack.Hogan@insideevs.com.