By Jessica Caldwell for Edmunds
- Car shoppers are accelerating or delaying purchases in anticipation of potential tariff-driven price hikes
- At least 50% of buyers say they understand how tariffs will affect vehicle prices, which could potentially fuel proactive shopping decisions
President Donald Trump’s renewed push for tariffs in his second term has ignited uncertainty across the auto industry, bringing fresh challenges just as the market was finding its footing after years of pandemic-driven volatility. Recent court rulings have made it harder for consumers and industry players alike to interpret what’s unfolding and what the consequences mean for their wallets.
So far, though, the actual impact of tariffs on the automotive market has been more muted than many expected and key indicators like average transaction prices (ATPs) for new vehicles have largely stayed in line with seasonal norms. If tariffs remain in place, broader market disruption may follow. 44% of car shoppers said tariffs will definitely influence their purchase decision, and another 31% said tariffs will somewhat factor in. Just 17% said tariffs wouldn’t impact their decision at all.
Shoppers say they understand tariffs, and that confidence is driving action
According to Edmunds survey data, 55% said they’re somewhat or very confident in their understanding of how tariffs affect vehicle prices. Only 21% said they weren’t confident. Whether or not that confidence is well placed, this level of awareness could make consumer response even more turbulent in the weeks ahead.
The volatility of the situation is likely making it difficult for shoppers to know whether to act quickly or hold off. 37% of in-market shoppers say they plan to buy sooner because of tariffs, while 25% say they’re choosing to delay their purchase. More consumers set their eyes on used vehicles as a strategic alternative as 58% of respondents said they’re more interested in used vehicles, and 46% of those said they’re more inclined to consider certified pre-owned (CPO) vehicles specifically.
Shoppers’ movement into the used market isn’t unexpected, but it will likely add pressure to an already constrained environment. Increased demand will likely drive prices higher, creating a challenging market for both consumers and dealers. Compounding the issue is the limited availability of near-new used inventory, a lingering consequence of historically low leasing volumes during the height of the microchip shortage three years ago.
Tariff anticipation and its ripple effects across the industry
Buying a car is often a high-stakes financial decision, and for some shoppers, the added uncertainty around tariffs can introduce new stress. From the pressure to act quickly to the fear of paying more later, this environment could shift the emotional tone of the car-buying process.
And it’s not just shoppers who are likely to feel the impact — automakers and dealers are also navigating uncharted territory. Forecasting demand is likely becoming far more challenging when buying patterns are this disrupted. With so many consumers rethinking their timelines, traditional models built around seasonality and historical trends could start to lose their predictive power.
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