BUFFALO, N.Y. (WKBW) — The auto industry is in a state of uncertainty as consumers and manufacturers alike grapple with the recently implemented 25 percent tariffs on all imported vehicles, which took effect on Thursday.
As many anticipate an uptick in car prices, the question remains: Should you buy now or wait?
In March, vehicle sales surged by over 10 percent as buyers rushed to make purchases before the tariffs kicked in. This trend highlighted consumers' intention to avoid impending price hikes by capitalizing on existing inventory, according to ABC News.
Karl Brauer, Executive Analyst for iSeeCars.com, emphasized the challenges currently faced by both automakers and consumers. “It’s really hard to say what’s going to happen because so much will depend on the length and the level of these tariffs,” he explained.
Now, just days after the tariffs were imposed, Brauer noted that many manufacturers are adjusting their strategies, including reconsidering production locations and offering aggressive pricing to entice buyers
“What we’ve really seen is reaction from a lot of the automakers trying to convince consumers they should buy now before prices go up on the vehicles,” Brauer stated.
In light of the tariffs, local dealerships are adopting strategies such as “pre-tariff pricing” in an effort to attract customers. Brauer pointed out that major automakers, including Ford, are also promoting discounts — such as employee pricing — to motivate purchases before the financial impact of the tariffs takes full effect.
The shift in pricing may also drive more consumers to the used car market. "If new car pricing and costs rise because of these tariffs, that’ll drive more people into the used market, which will drive up demand and pricing for used cars," Brauer noted.
This trend is already being felt at River Front Auto Sales on Niagara Street, where mechanic Rocco Weiss reported an increase in customer traffic amid the changing market conditions. “We are seeing a lot more customers come in,” Weiss said, attributing the uptick to seasonal demand as well as the new tariffs.
As spring approaches, Weiss observed that tax refunds are also contributing to increased sales. "Springtime is always our busy season, but now these tariffs are just another uptick in bringing used car sales up."
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