Should You Buy a Car Now? How Tariffs Could Impact Your Decision

Whether you need a new car or are looking for an upgraded model, you might be asking, “Should I buy a car right now?” Frankly, you’re not alone. This question has been at the forefront of many people’s minds in light of the ongoing 25 percent auto tariffs implemented by President Donald Trump and the 10 percent tariff on all countries that went into effect in early April.

Ahead, we spoke with two car experts about the impact of tariffs on car prices and whether or not now is a good time to buy a car.

How 2025 Tariffs Are Impacting Car Prices

If the car you want has not already been impacted by higher prices from tariffs, it probably will soon. A new analysis by the Center for Automotive Research has found that President Trump’s 25 percent auto tariffs will increase costs for automakers in the U.S. by about $108 billion.

“New cars with parts from outside the U.S. and new cars assembled outside of the U.S. will now be more expensive,” says Chris Pyle, former transition technician and auto expert with JustAnswer. “This price increase will likely spread across many cars, so each goes up a couple thousand instead of one model making a price jump beyond what any consumer would pay for.”

According to Kevin Roberts, director of economic and market intelligence at CarGurus, the brand estimates that the average list price for a new vehicle could rise from approximately $49,500 as of month-end March to over $53,000 in the coming months as the cost burden from tariffs is passed down to consumers.

“It is important to note that price increases will stem not only from the direct impact of tariffs on imported vehicles, but also from reciprocal tariffs imposed by other countries and existing steel and aluminum tariffs,” Roberts says. “These additional cost pressures will affect both imported and domestically assembled vehicles.”

Will used cars be more expensive because of the tariffs?

The tariffs won’t directly impact the price of used cars; however, it’s likely that more people will look towards them as a more affordable option. As a result, Pyle says you can expect the pool of used cars to decrease and the price to rise due to supply and demand.

Additionally, the prices of car repairs and parts will likely go up so maintaining your used car will also cost you more than it had in the past.

Is It a Good Time to Buy a Car in 2025?

Yes, now is a good time to look into getting the car because waiting will likely just result in the price going up even more. “A $50,000 car today may be $60,000 a month from now,” Pyle tells Family Handyman.

In a similar vein, for those with leases ending soon, Roberts says it may be worth considering a buyout or extending the current agreement, as replacement vehicles are likely to be more expensive. “Shoppers should be aware of available incentives being offered by automakers, as some are rolling out limited-time offers to help consumers offset rising costs,” he adds.

Should You Wait to Buy? Pros & Cons of Delaying Your Purchase

If you’re wondering if you should buy a car now, consider the pros and cons before making the decision.

Benefits of buying a car right now

According to Roberts, buying a car now could lock in lower prices than what might be available in the market in the coming months as tariffs start to take hold on newly imported inventory and car parts.

Also, right now, a number of automakers have unveiled limited-time employee pricing deals in the face of tariffs. “You might be able to find a deal that wouldn’t have been possible several months back,” Roberts says. “Plus, the future of auto incentives could be in question if profits are strained because of tariffs.”

From a more logistical standpoint, if your car has safety issues or something mechanically wrong that makes it unsafe to drive, then you should buy a car now. Regardless of the potential price increase, it’s most important that you’re in a safe vehicle that’s up to date and functioning properly.

Cons of buying a car right now

A con of buying a car right now is that they are going to be more expensive, as prices have already started going up. This can be a dealbreaker for some folks who don’t have extra money to spend on a vehicle that was significantly cheaper only a few months ago.

Aside from price, you may find that there’s limited availability due to supply chain issues and the sheer number of people buying a car to lock in a price before it gets any higher.

At the end of the day, whether or not you should buy a car now is up to you based on your circumstances and finances. It’s best to do your research and see what options are available that meet your needs.

About the Experts

• Chris Pyle, former transition technician and auto expert with JustAnswer.
• Kevin Roberts, director of economic and market intelligence at CarGurus.

Sources

• CAR: CAR Releases Tariff Impact Analysis (2025)

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The post Should You Buy a Car Now? How Tariffs Could Impact Your Decision appeared first on Family Handyman.

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