As Americans grapple with concerns surrounding inflation, President Donald Trump’s recent announcement of a 25% tariff on imported automobiles and car parts has added another layer of uncertainty. Economists predict that these tariffs could potentially hike up the cost of a vehicle by a staggering $4,711. While this news may seem alarming at first glance, industry experts like Brian Moody, the executive editor at Autotrader, urge consumers not to hit the panic button just yet.
Here are some key strategies consumers can employ to navigate the current landscape and save money when purchasing a car:
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Start researching now:
- Begin researching the model or brand of car you are interested in to familiarize yourself with the inventory supply and availability at local dealerships. Establishing a relationship with a dealership ahead of time may also be advantageous in securing a better deal.
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Consider vehicle popularity:
- High-demand cars typically come with a higher price tag, while low-demand models may offer more room for negotiation. Exploring alternatives to popular vehicles can help you find cost-effective options that meet your needs.
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Know which cars are American-made:
- More than 50% of consumers prefer purchasing American-made cars, especially in light of the recent tariffs. Knowing which vehicles are produced domestically can help you make an informed decision. Companies like Tesla, which manufacture their cars in the U.S., are less likely to be impacted by tariffs.
- Leverage available discounts:
- Explore discounts available for various consumer segments, such as recent graduates or military servicemen. Timing your purchase towards the end of the month or fiscal quarter may also present opportunities to capitalize on dealership incentives or manufacturer discounts.
In the midst of economic uncertainties and trade policy changes, consumers can proactively approach car buying by staying informed, exploring alternatives, and taking advantage of available discounts. By adopting a strategic mindset and conducting thorough research, individuals can navigate the evolving landscape of the auto industry with confidence.
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