CLEVELAND — With the possibility of a 25% tariff on automobiles looming, many consumers are wondering if now is the right time to buy a car. Industry experts say the answer depends on individual needs, but they urge buyers to consider financing rates, inventory levels and potential price increases before making a decision.
“At the end of the day, I think consumers need to make the choice that’s best for them,” said Louis Vitantonio, president of the Greater Cleveland Automobile Dealers’ Association.
While the uncertainty surrounding tariffs has some concerned, it doesn’t necessarily mean a 25% jump in sticker prices. Manufacturers are already making adjustments to absorb some of the cost.
“They’re all looking at their pricing, and they are all going to try to absorb as much as possible,” Pat Primm from Cascade Auto Group said
Right now, new car dealerships have a solid inventory, with about a 90-day supply.
However, the average price of a new vehicle is more than $48,000, and the average interest rate is 9.26%. Used cars are priced lower—around $25,000 on average—but come with higher interest rates, averaging nearly 14%.
Leasing is another option for those looking to keep monthly payments low.
“Leasing is a great option because it gets you a brand-new vehicle. It gets you where you need to go, back and forth, and it fits within your budget,” Primm said.
However, leasing comes with mileage limits and fees for excess wear and tear, making it less ideal for those who drive frequently.
“If you’re the type of person who wants to own a car ’til the doors fall off—no, you don’t want a lease,” Primm said.
The automobile industry had been preparing for a potential tariff change on March 4, but just days after new tariffs were imposed on Canadian and Mexican goods, former President Donald Trump extended the deadline to April 2.
“It is frustrating for sure because we have to plan. We have to order cars. We have to be ready,” Primm said.
While no one knows for sure if the tariff will take effect, customers are paying attention.
“It’s starting to be a part of the conversation,” Primm said.
Jon Johnson, a potential car buyer, said the tariff is on his radar but isn’t rushing his decision because of it.
“It’s caught my attention for sure, but it hasn’t made me just go, ‘Oh my gosh, we need to buy tomorrow,’” Johnson said.
Experts caution against panic-buying, and if you are in the market for a vehicle, they recommend weighing all options and asking the right questions.
- For used cars: Check if it has new tires, updated parts and a clean Carfax report. Test all features to ensure they work properly.
- For trade-ins: Dealerships are still rebuilding their used car inventory, which could mean higher trade-in values.
- For financing: Consider current interest rates and monthly payment options before deciding on a new, used or leased vehicle.
For those who buy new cars frequently, leasing can be a cost-effective choice. However, for long-term vehicle owners, purchasing may be the better investment.
Looking for ways to save money? Have questions about the price of something? Email consumer me at elizabeth.vanmetre@wews.com.
