“It’s a crazy situation for consumers, and even more difficult for manufacturers,” said Patrick Anderson, chief executive of the Anderson firm.
The impact of the tariffs would vary by car model, since some rely more on imported parts than others. But rather than vastly increasing the price of specific vehicles, the industry is likely to spread increases across all types — “like peanut butter” — to smooth out the price increases, said Tyson Jominy, vice president of data and analytics at the market research firm J.D. Power. Mr. Anderson said manufacturers would “almost certainly cut back” on models that became significantly more expensive.
What if I want to buy a car this year?
Much remains uncertain, including how long the tariffs would stay in place. “We literally have no idea,” said Joseph Yoon, consumer insights analyst at the automotive site Edmunds.com. So if a new car wasn’t on your radar, there’s no need to rush to buy one, he said. A car is an expensive purchase. It’s important, he said, to take time to research models and get one that fits your needs and your budget. “Don’t panic-buy a car valued at $47,000.”
Still, if you were planning to shop for a new car in the next few months anyway, and the model with your preferred features is available now, it may make sense to buy sooner rather than later. Jennifer Newman, editor in chief of the online car shopping site Cars.com, said that inventories of new cars were plentiful and that tariffs shouldn’t affect vehicles that were already sitting on sales lots. “If you’re thinking about buying a car, you need to be shopping now,” she said.
And if you’re interested in an electric vehicle or a plug-in hybrid, now could also be a good time to consider one because you may qualify for a federal tax credit of up to $7,500 if you buy or lease a new one. (The Trump administration has said it aims to reduce or repeal the credit, although Mr. Trump also went on television last month to announce he is buying a Tesla.) But make sure an E.V. truly “suits you,” said Jake Fisher, senior director of the Consumer Reports auto test center. Weigh factors like how far you typically drive, he said, and whether you’ll have access to a charger at home or at work.
