President Donald Trump’s The latest trade movement is to reach the accelerator pedal on the sale of car sales. With a rate of 25% on imported vehicles and parts that come into force, buyers race to dealers to retain prices before they climb.
Some industry experts say that it can add thousands of dollars for the costs of a new car, which encourages a last-minute shopping spree.
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A Toyota (NYSE: TM) dealer in Walnut Creek, California told KKGO TV who sell 70 cars during the weekend, while customers hurried to make a purchase before the rates started. The general director of the dealer, Irina Ellissaid: “This is time for these consumers to look for vehicles here before price changes come into effect.”
According to Marketwatch, Wedbush Securities Analyst Then then Ives Estimates that new car prices can rise by $ 5,000 and $ 15,000. However, the exact amount would depend on the model and the brand.
Fear of considerable price increases feeds the urgency. Like many experts in the field of car industry, Ives expects prices to rise on some models. Ives told Bloomberg while referred to the rates: “It would be a backbreak for the car industry worldwide.”
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According to Kelley Blue Book, the average transaction price of a new vehicle in July was $ 48,401. Reuters reports that car rates would increase car prices with an estimated $ 2,000 to $ 4,000 in the next 6 to 12 months, because car manufacturers pass on higher import and production costs to consumers.
The prices for used carchairs are also not safe – dealers predict that they will rise as new car inventories shrink. Caredge Co-founder Ray Shefska predicts These rates will influence the market for used cars if they continue for a longer period. If they control new car prices higher, more buyers will run to the market for used cars. Higher demand for used cars would of course generate prices higher.
In addition to sticker shock, car manufacturers are braced for higher production costs, which can influence jobs and supply chains. The production hubs of Michigan, Ontario and Mexico can see if companies adapt to the new economic reality.
