How will tariffs impact used car dealers in Michigan?
The average price of a new car in America is nearly $50,000, according to Kelly Blue Book. After President Trump's 25% auto tariffs on all imported vehicles kicked in overnight, the price of new cars is expected to rise even more.
"Used car market is going to pick up; you know, prices of new cars is going to help out the used car market," said Jason Latimer, the owner of Madison Motors in Madison Heights, Michigan.
"All new vehicles, even those made in the United States are going to go up in some cases three, five,10, even $20,000 or more and that's going to drive a lot of people to consider used vehicles," Paul Eisenstein, the editor of Headlight.news told CBS News Detroit.
It's a difficult pill to swallow for consumers throughout the country, but Latimer says it's beneficial for his business, even though it's becoming more expensive to buy used cars to sell himself.
"Used car sales have picked up, but the prices to buy them have picked up also, so it should be great for business. Going to have to pay top dollar to get cars that's the only problem," he said.
According to Cox Automotive, 700,000 fewer new cars will be sold this year because of tariffs, which could mean more business for your local used car dealership.