New car prices could potentially be impacted by tariffs implemented by the Trump administration, but used cars could also be on the rise. Charlie Wojciechowski has the story.
New car prices could potentially be impacted by tariffs implemented by the Trump administration, but used cars could also be on the rise.
Carfax, the company known for its vehicle history reports, also tracks used car values, and the company said prices are already increasing.
“Nationally, used van and minivan prices jumped a whopping $800 in March, and Chicago is no exception,” said Em Nguyen, a Carfax spokesperson. “We saw some of the biggest movement in the Midwest for vans and minivans up roughly 3.7% (this month)."
Those increases mean that a $40,000 vehicle would now cost an additional $1,500, according to the company.
As of April 3, the Trump administration imposed a 25% tariff new vehicles and auto parts imported into the United States. While meant to boost manufacturing, experts claim the tariffs have led to confusion and increased costs for consumers and manufacturers alike.
Its something all retail sectors are dealing with according to Dominick Miserandino, the CEO of Retail Tech Media Nexus.
“There’s no historical model because we have globalized so much for such a long period of time,” he said
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Adding to the confusion are tariff policies with regard to smartphones, electronics and semiconductors, many of which come from China.
Last week, there was hope there would 90-day pause in tariffs for that country, but instead the Trump administration continued to increase levies as China initiated retaliatory tariffs of its own.
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Even without the looming issue of the tariffs, prices of used cars usually go up this time of year as people look to spend their tax refund checks. Still, experts say there are new factors steering the market including a shortage of used cars.
“We are looking at the nation’s economic uncertainty and it's creating this dynamic and competitive market for potential car buyers,” Nguyen said. “The thing is, we are at the front end of this. We are only expecting it to keep increasing.”
