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2 Major Ways Tariffs Are Changing the Way We Buy Cars in America
Tariffs are expected to raise the prices of most cars, even those made in America. And while this isn't deterring Americans from buying cars — a recent survey conducted by Jerry found that 45% of Americans would like to buy or lease a car this year — it is changing their buying behaviors.
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Here's a look at how tariffs are changing how Americans buy cars.
Among Americans who plan to buy a car this year, 23% said they aren't making any changes to their plans. But the majority are making shifts — though there isn't a consensus about the best way to time their car buying strategically.
Of the Americans who plan to buy this year, more than 50% said they'd like to buy a car sooner than planned because of tariffs, and 25% said they'd postpone their purchase to see the impact of tariffs. Those who plan to buy earlier might end up coming out ahead — though it's still unclear how everything will shake out.
'For many buyers, acting sooner may lead to better deals before tariffs ripple through the market and drive up prices,' said Sinduja Rangarajan, data storytelling lead at Jerry. 'Automakers are still working through pre-tariff inventory and are in the early stages of strategizing price increases — but already, there are projections that tariffs could raise car prices by thousands of dollars.'
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And it's not just the cars themselves that could get more expensive.
'Tariffs may also drive up future insurance costs, since imported steel and aluminum parts could make repairs more expensive, which is another reason to shop now,' Rangarajan said. 'In the near-term, many brands are offering summer discounts.'
However, there may also be advantages to waiting to make a car purchase.
'Waiting to buy could help you avoid price spikes, rushed financing and bad loan terms as the market digests new tariffs,' Rangarajan said. 'Holding off gives you time to see how things shake out and potentially score better deals later.'
With so many unknowns, it's best to plan your car buying around when is right for you.
'Ultimately, the smarter financial move depends on your budget, your timing and the specific models you're considering,' Rangarajan said. 'Some foreign-made cars may still offer strong value even after tariffs, while others built in North America could sidestep price hikes altogether.'
Among Americans who are planning to buy a car this year, 31% said they'd switch to an American brand because of the tariffs, the survey found. However, this isn't a surefire way to avoid tariff price hikes.
'It's true that American automakers like Tesla, Ford and Jeep are largely shielded from tariff-driven price hikes, but the reality is more nuanced,' Rangarajan said. 'Many foreign brands, including Honda and Toyota, have spent years localizing production in North America, and even U.S. brands rely on global parts.
'In fact, the five lowest-priced cars according to our analysis are foreign-made, even after accounting for tariffs — the Nissan Versa, Kicks and Sentra, the Toyota Corolla and the VW Jetta,' she continued. 'Tariffs affect each model differently.'
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This article originally appeared on 2 Major Ways Tariffs Are Changing the Way We Buy Cars in America
