Car buyers and dealers in Massachusetts concerned that auto tariffs could cause prices to go up
An impending 25% tariff on imported cars and parts has car dealers in Massachusetts concerned as prices have already started surging.
President Donald Trump announced that on April 2, a new tariff will go in effect, hitting all imported cars and car parts. It has some customers rushing to buy cars before the deadline because they are fearful prices may spike.
Loading up on pre-owned cars
"After we decided we would actually get it, then he announced the 25% tariffs going in April 2," said Judith Montminy, a new car buyer at Planet Subaru in Hanover
Planet Subaru has also been trying to get in front of the tariffs. On Wednesday night, the Hanover dealership bought 180 pre-owned vehicles. They call them "pre-tariff" as used cars are not subject to the tariffs.
"We bought these so we can offer pre-tariff pricing to our customers. Unfortunately, we don't control new car pricing that comes to us from the manufacturer," explained James Greene, Sales Director at Planet Subaru. "People do not want to pay $5,000 to $10,000 more for a car that a month ago was $5,000 to $10,000 less."
That's why they loaded up on pre-owned cars, believing buyers will lean toward a better deal on a recent, pre-owned car than paying inflated new car prices.
"Just as recently today, some of the cars have now gone up almost $1,000 to $2,000 just at auction," said Greene.
U.S.-made cars still subject to tariffs
Even if a cars is made in America, it may still be subject to tariffs.
"The majority of car companies in America, they're at least sourcing part of the vehicle from outside the country," explained Justin Kim, an account executive with OEC Group, a logistics company that specializes in freight shipments and trans-pacific trade. "I think Jeep manufactures about 70% of their parts here and they're on the higher end."
Planet Suburu has been transparent about the upcoming tariffs, and even posted an alert at the top of their website.
"I'm always for transparency," said Montminy.
