Car tariffs

[firewhen]

We are moving to Florida and will be driving our old minivan down loaded with our things and will purchase a new car once there and probably sell the minivan. This will happen before the summer ends. All was well until the tariffs. I know there is some uncertainty on whether they will really stick, but assuming they push up new car prices, and all politics aside, I would like to avoid them. I am speaking to one dealership there about buying a car and having them hold it on their lot until we get there. They would start it every few weeks and drive it around the lot (the way they do with all their unsold cars on the lot) but otherwise not use it (no joyriding or demo). Would need some level of insurance coverage on it but that should be it for interim costs. We would be paying cash. Any thoughts on this? Anyone else moving up a car purchase? For those who know car dealership workings, is there anyway to put a car on hold with a large deposit or through an installment sale of some sort to not actually purchase it until the summer but still avoid the tariffs, since they would be holding the specific car for us? From what I read tariffs would not apply to cars already here on dealer lots. Another option is to buy the car up here now and ship it down when we are moving.

 

[sdawson]

What is the insurance cost for the 6 months? Would that be more than you would save by buying a car later rather than now? If this is a new car, you are also losing 6 months of warranty as it just sits there.

Also, if a new car, you could go order it now customzed however you want from the factory -- see how long that would take to have built and delivered -- that may meet your time frame of having it this summer but not sitting on the lot.

 

[JoeWras]

We have 3 old vehicles, 2009,2010,2011. Mileage is 110k to 221k. So DW was about to look for a new car.

We're going to stand down for now.

Why? Because the internet has lit up with "You better buy your car right now!" I mean, everywhere. Even Nextdoor has a popular thread.

Is it a risk to wait and see what happens, because maybe tariffs will stick? Yes.

Is it a risk to rush to buy right now, when social media is cranking klaxons everywhere (even here)? Yes. We don't want to rush into the wrong car for DW, or fight the games of short supply.

So, I don't have answers. We could be wrong, very wrong, to wait. Or we may be right to relax instead of joining the feeding frenzy and get bit by a shark or two.

 

[firewhen]

That is a wonderful idea. It is a new car and he was looking at what was on the lot. But if pricing is similar to order one could still avoid the tariffs if making the purchase now from the factory I would think even if it does not come in until the summer. I will ask about that thanks. JoeWras we do know exactly what we want, so that is not an issue, just the timing.

 

[JoeWras]

For those who know car dealership workings, is there anyway to put a car on hold with a large deposit or through an installment sale of some sort to not actually purchase it until the summer but still avoid the tariffs, since they would be holding the specific car for us?

IAMACD (I am not a car dealer), but I will guess that you will not have luck with a "large" deposit to hold a car. Your deposit will have to be large enough to buy it, and then actually buy it.

This is from my experience.

I "held" a car for a deposit of a few hundred (yeah, not large, I know). And whatever I signed basically said in very fine print: "This doesn't mean anything, we can sell this out from under you. Oh, and we can then hold your deposit for 30 days after."

That's what happened. "Bought" a car Wednesday with a deposit. Organized things with the bank on Thursday. Showed up at the dealer on Friday to obtain the car, and it was gone. "Sorry, we made a mistake and accidentally sold it." Yeah, right.

My deposit was mailed to me via check postmarked exactly 30 days later.

 

[JoeWras]

That is a wonderful idea. It is a new car and he was looking at what was on the lot. But if pricing is similar to order one could still avoid the tariffs if making the purchase now from the factory I would think even if it does not come in until the summer. I will ask about that thanks. JoeWras we do know exactly what we want, so that is not an issue, just the timing.

That's good if you know what you want. You should try to order it.

Keep in mind a few things about "pricing being similar." One reason dealers give you a break for cars on the lot over ordering is because of the carrying costs. Dealers pay a lot to have cars on the lot. They also get kickbacks from the manufacturer after the sale completes. CarDealershipGuy talks about this all the time.

So ordering is a different process, and you may not get a similar price, but you should surely try. You may still get a deal.

 

[Midpack]

IAMACD (I am not a car dealer), but I will guess that you will not have luck with a "large" deposit to hold a car. Your deposit will have to be large enough to buy it, and then actually buy it.

This is from my experience.

I "held" a car for a deposit of a few hundred (yeah, not large, I know). And whatever I signed basically said in very fine print: "This doesn't mean anything, we can sell this out from under you. Oh, and we can then hold your deposit for 30 days after."

That's what happened. "Bought" a car Wednesday with a deposit. Organized things with the bank on Thursday. Showed up at the dealer on Friday to obtain the car, and it was gone. "Sorry, we made a mistake and accidentally sold it." Yeah, right.

My deposit was mailed to me via check postmarked exactly 30 days later.

+1. Hyundai dealer sold a car out from under me after I’d put down a $500 deposit and signed all the paperwork. Dealer owner sold my car to a friend who wanted the exact car I’d already committed to buy. I’m sure it’s not common, but I wouldn’t trust a car dealer for anything. The more carmakers who go direct to consumer the better IMO. They make more on service than sales anyway as I understand it.

 

[finnski1]

Buy the new car now, sell the mini van. When the time comes, rent a one way U Haul large enough to hold your stuff and tow the new car down?

 

[CincyDave]

Ordering it sounds like a good idea and will eat up some time. Then buy it and just carry comprehensive coverage ( if your insurance company allows it), which is inexpensive. Only downside is you won't be able to drive it with only comp coverage.

 

[Closet_Gamer]

You may find this article interesting. Summary of what brands and models are exposed to tariffs based on where they are made/parts come from. Even cars made here will likely have upward price movement due to shifting demand and higher priced competition.

https://www.caranddriver.com/news/a64308066/list-of-how-tariffs-will-affect-every-car/

 

[camfused]

@firewhen, where are you located...take the AutoTrain?

 

[38Chevy454]

Why not just get rid of the old minivan and buy the new car now? Is it for storage room of the van moving? If so, just get a new car with a hitch and pull a small trailer (U-haul or similar) with your stuff. You could probably buy a trailer, even better if used, and then sell once down in new location for near net zero cost.

 

[Teacher Terry]

I bought a 2024 car off the lot in January because of tariffs. I would have normally waited until my 17 year old car needed repairs if it wasn’t for the tariffs.

 

[Koolau]

I'm guessing some of the tariff is already being baked into the price the dealer will accept. The sticker price means little these days. It's STILL supply and demand. With people wanting to beat the tariff, price are most likely to rise.

Now used cars might just have an advantage if you know how to shop for one.

 

[FLSUnFIRE]

I wouldn't act based on speculation. Worst case, a harsh tariff is fully implemented (unlikely IMO) and if prices really spike 25% (domestic will spike too... just need to be slightly cheaper to stay "competitive" than anything imported and also many domestics integrate components from overseas that could be taxed too) and if/when that happens it will be all over the news cycle and not popular. I have a domestic branded car that was manufactured in Europe I plan to keep for a long time and already have parts availability concerns and adding a tariff could make it worse. -Several "good" cars have already been totaled out due to parts availability. Still, nothing I can do other than drive safely so no one hits me!

This was kind of an interesting perspective on the auto market:

 

[GBcycling]

We have 3 old vehicles, 2009,2010,2011. Mileage is 110k to 221k. So DW was about to look for a new car.

We're going to stand down for now.

Why? Because the internet has lit up with "You better buy your car right now!" I mean, everywhere. Even Nextdoor has a popular thread.

Is it a risk to wait and see what happens, because maybe tariffs will stick? Yes.

Is it a risk to rush to buy right now, when social media is cranking klaxons everywhere (even here)? Yes. We don't want to rush into the wrong car for DW, or fight the games of short supply.

So, I don't have answers. We could be wrong, very wrong, to wait. Or we may be right to relax instead of joining the feeding frenzy and get bit by a shark or two.

I have a rule of thumb that I have used for decades on new vehicle purchases:

- When the cost of maintenance exceeds 50% of an annual car payment over a rolling 12 month period, replace the vehicle (ie if a new car payment is $8000/year for a replacement vehicle and I just spent $4000, I would start down the replacement path. Routine maint (tires/brakes/oil dont count)). This has kept me in the same vehicle for 15 years typically. I have had the benefit of 3 children to pass on cars to as they age in my fleet. Now that we are retired, I am not sure how that old maxim will hold up. 200k miles depending on make is not uncomfortable to me, but I may not take it on a cross country trip. My daughter replaced our 06 Honda Odyessy this spring with 260,000 miles.
- Service part purchases typically peak around 11 years. After that the prices can start to escalate quickly as the original manufacturers of those parts exit the product line (then quality/reliability diminishes) and supply begins to reduce because no one wants to be in a business only selling a few hundred a year of a widget (resulting price increases).

 

[VanWinkle]

We bought new last May 2024 based on needing a car with less miles due to extensive road trips. If the tariffs increase the cost of a new car, I would just wait for the smoke to clear before I buy again.

 

[audreyh1]

I bought a 2024 car off the lot in January because of tariffs. I would have normally waited until my 17 year old car needed repairs if it wasn’t for the tariffs.

It was time anyway. Now you should be set for another long while.

 

[Jerry1]

I like the idea of ordering a car, but I wonder if the tariff would still be imposed upon delivery. Be sure to understand that before ordering.

What type of car are you thinking of getting and, have you done any estimate of what the tariff may be? Personally, I’d just hold off on getting the new car until things settle down. You have a plan and I’d favor sticking with it with the understanding that you may delay the purchase. I feel like there’s a possibility of the tail wagging the dog in this scenario. Sure, it’s alway good the be conscious of the money, but don’t let the possibility of tariffs change your plan. It’s doubtful the difference is going to impact your life. And, don’t forget, some alternatives cost money too so be sure you’re focusing on the net difference, not just the tariff.

 

[ncbill]

I used to say I'd get rid of a vehicle if it needed an engine or transmission replaced.

But with the average price of new approaching $50,000 I'd absolutely pay to replace the above instead.

My current daily driver has a powertrain used in millions of vehicles, so there are plenty of used options.

 

[ArmchairMillionaire]

We bought new last May 2024 based on needing a car with less miles due to extensive road trips. If the tariffs increase the cost of a new car, I would just wait for the smoke to clear before I buy again.

We plan on taking more road trips after we (hopefully) retire in a few months. We bought our retirement road-trip wagon last year because prices seemed to be heading upwards even then due to supply chain issues. Now with the possible new price increases, we're happy we bought when we did. $23K (cash) with a lifetime powertrain warranty, (conditions apply) so we should be good for a while.

 

[Car-Guy]

I'm already planning my next new car/truck purchase, tariffs or not. It was clear Stellantis was moving away from V8 Hemis in the past few years and were discontinuing model after model here in the US. BUT, very shortly after the US elections, Stellantis started making top management changes too and even hiring back some of their "retired managers" (e.g. the RAM division) that made them so sucessful here in the US! Informally, they have "let leak" that the Hemi's are coming back and that many of the popular discontinued high performance models will be returning soon with even more power. My guess is we'll probably start seeing commercials on TV in a few months publicizing the return. Music to my ears.

What will be interesting to see, is they follow through with moving much of their engine manuafuctuing from Saltillo Mexico to the Dundee Engine Plant (DEP) in Michigan, thereby avoiding any potential tariffs. It's not 100% clear if traffis would be applied to the engines or not, but the "word is" they are moving to Michigan anyway. So that means more jobs here in the US and hopefully any prices increase will be small or at least not go up becasue of tariffis.

I'll be ready for a new truck by the end of the year. Perfect timing for me.

 

[Badger]

We have 2 cars (2019 and 2020 Hyundai Santa Fe) that we bought new. Both are under 25k miles so we don't need to buy. If I was in the market for a new car I would get it now to drive to Florida. Then either ship it, drive it, or tow it behind the minivan. Sell the minivan when you get there. By then the price of the minivan may be even higher. If the tariffs increase the cost of a new car it will also have the same effect on used cars. If not then you haven't lost anything in the interim months. Seems like a winning situation for you.

 

[flyoverstate]

I'm already planning my next new car/truck purchase, tariffs or not. It was clear Stellantis was moving away from V8 Hemis in the past few years and were discontinuing model after model here in the US. BUT, very shortly after the US elections, Stellantis started making top management changes too and even hiring back some of their "retired managers" (e.g. the RAM division) that made them so sucessful here in the US! Informally, they have "let leak" that the Hemi's are coming back and that many of the popular discontinued high performance models will be returning soon with even more power. My guess is we'll probably start seeing commercials on TV in a few months publicizing the return. Music to my ears.

What will be interesting to see, is they follow through with moving much of their engine manuafuctuing from Saltillo Mexico to the Dundee Engine Plant (DEP) in Michigan, thereby avoiding any potential tariffs. It's not 100% clear if traffis would be applied to the engines or not, but the "word is" they are moving to Michigan anyway. So that means more jobs here in the US and hopefully any prices increase will be small or at least not go up becasue of tariffis.

I'll be ready for a new truck by the end of the year. Perfect timing for me.

If you are looking at a new truck by the end of 2024, what makes you think they will be moving manufacturing to the US before then? It will take years to restart manufacturing in the US.

As a former Jeep owner, I wouldn't touch a Stellantis product with YOUR ten foot pole. My 2014 Wrangler was by far the worst of the 50+ vehicles I have owned, and that includes crap from the "malaise era" of the late-70's through the early 90's. Six *major* issues in 60,000 miles, which is when the warranty ended and I immediately dumped it. I'm not taking rattles or door locks not working, I'm talking multiple oil and coolant leaks, broken steering components. electrical issues, you name it. It was nuts.

 

[Fermion]

If I were looking at a new truck I would probably eye the Ford Maverick AWD hybrid. 40mpg and under $35k