Car buyers' window for dodging tariff price hikes is about to close, experts warn

Holding out for a bargain on your next vehicle purchase or a major repair? Don't, industry experts say.

Holding out for a bargain on your next car purchase or a major repair? Don’t, experts say.

President Donald Trump’s 25% tariffs on steel and aluminum took hold last week, and the monthlong reprieve he offered U.S. automakers from his 25% tariffs on imports from Mexico and Canada ends April 2, threatening to drive up costs for vehicles and auto parts in coming weeks.

“There is no way you’re going to see a better discount if you wait three months,” said Ivan Drury, director of insights at Edmunds. “That’s guaranteed.”

Concerns about imminent price hikes come just as the auto market shows signs of stabilizing. The latest consumer price index showed new vehicle costs down 0.3% last month from the year before and those for used cars and trucks 0.8% higher over the same period — both far lower than the 2.8% annual inflation rate overall.

Those trends aren’t likely to last, analysts warn. Tariffs are expected to drive up auto costs by $4,000 to as much as $12,500 depending on vehicle, engine type and country of origin, according to the Anderson Economic Group, a consultancy that represents automakers and dealers.

https://www.nbcnews.com/business/autos/car-buying-vehicle-prices-tariffs-rcna196777

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