Buying a car in 2025? Here’s the bad tariff news

Consumers in the market for a new car may be in a tough spot. With new tariffs on imported vehicles, prices could rise in the coming months.

But for some buyers, now might be the perfect time to make a move – before the sticker shock.

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“New car prices have gone up just a tick, about 1%. Used car prices have dropped about 2%,” said Denny Ceizyk, a consumer lending analyst at Bankrate

He says dealerships have plenty of inventory on their lots, making it easy for shoppers to find the car they want. But the threat of tariffs can make things more complicated.

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“You might see a little bit of pain on the used car side if you need to get your car fixed,” said Ceizyk. “I think the good news this year is that there are more cars available. Because there is so much inventory out there, you can expect a longer waiting time at the dealership. So I'd probably say take advantage of the online perusing if you can.”

Stocks slide as Trump tariffs hit markets

The prices of many products are expected to go up after President Donald Trump announced sweeping tariffs.

Dealers could offer incentives to get cars off their lots before prices start climbing.

“We're seeing some pockets of opportunity for buyers in the dealership incentives for specific manufacturing rebates, maybe 0% financing. Those are gonna be very car-specific,” Ceizyk said.

Financial experts say borrowers with good credit will see the best offers. Ceizyk recommends putting down at least a 50% down payment to get the best financing rates.

“Something to consider is that owning a used car or buying a used car may come with higher expenses because of tariffs going into the future, if they do affect the parts that are being used for the repairs,” Ceizyk explained.

What the new tariffs mean for your money: ‘Keep it all in perspective'

With the market roiled by sweeping new tariffs, should Americans be holding off on big purchases? RBC Wealth Management financial advisor Nora Yousif told us it depends on how much you have in your emergency fund — and told us how bumpy of a ride the market seems in for.

If you're not in a rush, it may be worth waiting to see how the market settles. Domestic automakers could adjust pricing to stay competitive.

“You might wanna take some steps first to improve your credit score like paying off your credit card,” recommends Ceizyk. “Just making sure everything is paid on time, things like that, and then maybe buy it a little bit in the future.”