Your Buyer’s Guide to Cars and Tariffs

Every day, we get a lot of questions here at Edwards Chevrolet 280, from customers wondering about different models in the Chevy lineup to asking about the details of distinct features like the Chevy Safety Assist package or Chevy’s remarkable Super Cruise hands-free driving technology. What we did not expect (until the last year or so) was to get a lot of questions about tariffs and how they might impact the auto industry. But the most important thing to us is being able to help all of our customers with everything you need, which includes helping you understand anything that impacts the industry and what you can expect when shopping for your next vehicle. We have put together this selection of common questions we receive and their answers so you have the information you need to get the best car-buying experience possible.

Why Buy Your Vehicle NOW?

Before we get into the nitty-gritty details of what a tariff is and how it may impact the industry at large, let’s talk about the best time to buy a vehicle. At our dealership, we have a limited supply of vehicles available that will not be impacted by tariff-related price increases.

• Beat Tariff Hikes – Our current inventory is priced before expected tariff increases—act now to avoid paying more later.
• Save $4,000 to $14,000 – Buying today could save you thousands compared to post-tariff pricing.
• Lock In Today’s Prices – These deals are limited to what’s in stock. Once they’re gone, the pricing may not return.
• Shop Before the Rush – Inventory will move fast as prices rise. Get ahead of the crowd.
• Maximize Your Trade-In – Get top dollar while trade values remain high.
• 0% APR & Special Financing – Take advantage of low rates while they last—offers may change without notice.

The best time to shop is now before people see an increase in the overall cost of vehicles, which can be anywhere from $4,000 to $14,000 over current prices. Shop smart, shop early. Beat the rush, lock in a great trade-in value, and take advantage of special financing—plus, enjoy the widest selection of vehicles before everyone else catches on. During the COVID pandemic, we saw prices of new vehicles skyrocket and vehicle availability drop overnight. To avoid getting caught in that situation, purchase your vehicle now and stay ahead of this.

What Are Tariffs and How Do They Work?

Although we do not get this question as much as you might think, since a lot of people seem to understand tariffs pretty well, it is an important place to start. Simply put, tariffs are a type of tax imposed on goods and services that are imported into a country. If the United States imposes a 20% tariff on all products coming into the country from Mexico, for example, then that is a 20% federal tax on those goods. That money is paid to the federal government, just like your federal income taxes, generating more revenue for the government and its various agencies.

Who Pays the Tariff?

This is the second point that we want to clear up because not everyone knows the answer to it. The company importing the product into the country with the tariff pays that tax, not the exporting company or country. In some cases, that can be one and the same; if a company in another country makes their products there and imports them into the US to sell them in storefronts that they own, then they will pay those tariffs on their own goods. However, a car company owned and operated in the US that needs to import components for the vehicles it manufactures in North America will pay the tariff on any components it brings in to make its vehicles.

What’s the Point of Tariffs?

Although they can be used for different reasons, generally, tariffs are seen as a way to help support domestic companies over those in other countries. Imagine that you are a company that needs Part A for the product you make, and you have two potential sources for it: a foreign manufacturer that sells it for $100 or a domestic one that can sell it to you for $110. All else being equal, you will probably choose the one from overseas to save money, especially if you need thousands or hundreds of thousands of components each year. Now, if a 20% tariff is imposed on the nation where that foreign company is located, suddenly, its components will cost you $120 instead, and the domestic manufacturer is now cheaper, so you will probably choose them. The tariffs you are seeing discussed in the news these days are intended to protect domestic industries and pressure other countries into reducing their own tariffs. This is based on the idea that if American companies stop buying imported goods or buy fewer of them, that will ultimately hurt companies in other countries financially. In theory, those companies will then pressure their governments to do something to alleviate the burden of the tariffs. Even better, a foreign nation might take action to avoid the tariff entirely so no one has to suffer for it. We cannot say if they will work that way, but that is the idea.

How Can Tariffs Affect the Auto Industry?

First, any vehicle coming from a country with a tariff placed on it will be more expensive to bring into the US. These kinds of blanket increases in costs will likely have the biggest impact on prices. Second, vehicles with components that need to be imported from overseas will be more expensive to manufacture as a result of tariffs on those parts. This could be a smaller increase in costs, but it will still make cars more expensive to manufacture. In either case, the result is the same: vehicles will become more expensive to make and sell here in the US, and therefore, they are expected to cost more.

How Much Will Car Prices Go Up?

This is the big question, and one that we cannot reasonably answer. All we know is that prices will likely go up because car manufacturers are not known for accepting drastically lower profits. Most estimates expect prices to go up by thousands of dollars. We use the suggested retail price from car companies to guide our prices, just like other reputable dealerships. If we undercut those prices, then we will lose money on sales; this will hurt our dealership and could result in layoffs. We are not about to do that to the team of wonderful people we have brought together, so prices will likely go up on new vehicles.

What About Cars Available Right Now?

The good news is that vehicles built or brought into the US prior to any tariffs going into effect will not be directly impacted by those tariffs. While we cannot say what every dealership will do, this means that these vehicles should be sold at reasonable prices. Of course, the supply of pre-tariff vehicles will not last forever, which is why we strongly suggest that all of our customers act quickly if they need a vehicle. We cannot say what the future will hold, but prices right now are in a great place. If you wait and see what happens, then there is a greater chance of being negatively impacted by price increases and other consequences that new tariffs could have for the auto industry.

What About Used Vehicle Prices?

As we saw during the COVID pandemic, if prices of new vehicles go up, then the demand for used models also increases. When that happens, great used cars become scarce and also more expensive; we would not be surprised if the same thing happens as a result of tariffs increasing the prices of new vehicles. In fact, if tariffs go into effect and there is a sudden surge in used-car buying, then we could see those prices go up even faster than for new vehicles, which we expect to take longer to directly reflect the added costs of tariffs.

Who Can Help Me Find a Vehicle at a Great Price?

This is an easy one to answer because we are here at Edwards Chevrolet 280 to help you find a terrific vehicle at a fantastic price. We cannot control what will happen when it comes to international policy or tariffs levied by the federal government, but we can provide you with great customer service and friendly people ready to help you with everything you need. There is no better time than right now to shop for and buy your next vehicle because there is no reason to think that tariffs will lower prices in any way. Your best bet is to get ahead of them and take advantage of a great deal today so you have a vehicle you know you can count on. That way, you have fewer questions to keep you up at night, and you can drive at ease each day.