We have two aging cars, 2012 and 2015. Both need some repairs but neither is on the verge of falling apart. As we are retired, we don’t really need two cars. We’ve been thinking about trading in both on a new or recent vehicle, a Honda, Toyota or Subaru. With the uncertainty of changes in Washington, and prices shooting up if Trump gets his way with his tariffs, we’ve been thinking that NOW might be the best time to do it. However, doing so would be a financial stretch. The alternative is to have repairs done on both, keep them running a while longer, and see how things turn out. Were you in our shoes, what would you do?
You’re not the only one to think that car prices will shoot up due to Trump tariffs, so it’s better to buy now. As a result, car prices are probably already inflated.
If he crashes the economy they won’t be able to give cars away.
So the question to answer is whether you think you’re more or less well-positioned to thrive in a crash than most of everybody else in your SES who’d be buying the same sorts of cars you might.
If your answer is “more”, just wait & steal a giveaway mobile. If your answer is “less”, think about whether a new car is a necessity or a luxury that might drown you in a crunch.
It also probably depends on whether you think your new purchase will be affected by tariffs.
We bought a new vehicle 2 months ago (so prior to the election) because of availability and near certain winter-based death of an existing car luckily.
But if you’re looking for any other major purchase, not just vehicles, especially if it’s sourced in China, I’d buy sooner not later.
For example, I bought a new gaming laptop on an early black Friday sale, because I suspect a lot of those components to jump in price soon.
But to @LSLGuy’s point - if Trump fully crashes the economy, I think we’ll ALL have a lot more to worry about than new cars.
Also, how would tariffs affect things that are assembled in the US? Would the tariffs apply to the parts (which are largely imported) or just the final product?
We need a new home computer - and are thinking of making that purchase sooner vs. later. Car-wise, I’m hoping we can hang on to both of ours for a while; to be fair, one is 4 years old, but the other is now old enough to vote! The 4-year-old car replaced one that was old enough to drink…
For the OP: what would a new-car payment be like, compared with projected repair costs on one / both of the old cars? If the price of a new car goes up 20%, does that change the equation enough? And what expenses would go UP with a newer car? (my locality has an annual car tax that is substantial for a newer car; insurance will be higher, and so on). Some expenses will go down, of course - repairs, possibly fuel, and if you get rid of both old cars, you’re only insuring one car.
If both are aging, repairs might add up to more than a payment. Our logic, when hanging on to the older (nearly 22 years) car was that while we didn’t want to take either car on any long drives, the occasional rental was less than a month or two of payments on a newer car. Until the older car wanted a repair that was many times its value, we kept it going.
I assume, based on historical trends, that given Trump’s heavy hand, it will at least apply to the parts (imported as you say) and could see it ALSO applying to things assembled here that have a furrin’ name. Especially if anyone in any part of the chain has offended him, hurt his feelings, or failed to stay at one of his hotels.
Even with just the near-certain increase in parts cost (my wife’s employer has been trying to "de-Chinafy their supply chain with increases of nearly 100% in many areas) sooner rather than later is probably a good plan.
I need a new car but think I will wait this out. The local gas company and water company are tearing up the streets everywhere at home and work and I really don’t want to park a new car in this chaos. It’s been madness and mud 24/7 since January 2024 and t looks like 2025 is more of the same.
My car is a 2013 Chevy Impala which has been repaired many times but still runs decently. I drive it to work and a few local shopping trips and doctor appointments. I also travel several times a year about 4 hours to Virginia to visit family and as long as I can manage that I will be fine.
I wanted my new car purchase to coincide with the end of local infrastructure remodeling and my anticipated retirement next year. I just can’t go buy one now.
Lots of good suggestions and advice here and it’s always a tough decision to bite the bullet for an expensive purchase like a car.
I am going to buy a new laptop to tide me over until I can get a good desktop up and running again. Also a new kindle and possibly a new coffee maker. I’m making a list.
That’s not how car pricing works. There’s been no appreciable increase in either prices nor demand in the 2 weeks since the election. You’re paying the same price for a car today as you were on Nov 4th.
That’s also not how car prices work, they’re not high margin products that manufacturers can strategically cut margin to induce demand. The result of a poor economy is likely to be higher prices, lower demand and manufacturing lines shuttered and lowered output by car manufacturers.
OP: If you can stretch it, buy the car now, it’s a good time to buy right now, the cars on the market right now are pretty decent and it sounds like you’re getting an ICE car and we’re in the last generation of manufacturers investing seriously into improving ICE car technology so whatever you get should last you a long while before probably moving to an EV as your next vehicle.
Another thought: it’s the end of the model year - as in, the 2025s are coming out. Our last 3 car purchases have been end-of-model-year purchases. Dealers may be more motivated to cut prices and give you a good deal on a 2024 car.
China tariffs will not have much if any inpact on how much it cost to produce a car. We have had Trump tariffs all through the Biden administration and manufacturers have had more than enough time to source as much as possible away from China to other countries.
Other factors, such as trade wars over new tariffs on other countries could upset things. That and a decision will need to be made over buying another ICE vehicle or switching over to electric or hybrid vehicle.
Having said that, I was thinking of stocking up on a dog flea and tick preventive (Frontpro), that I order from a legitimate pharmacy in Portugal, due to the U.S. exact equivalent — made by the same multinational drug company — being about twice the price. My reasoning is that any tariff would make small mail orders too much of a hassle, so they would no longer sell to Americans.
And the used market will get even more crazy than it has been. You might be able to sell your current car for a small fortune, but good luck replacing it.
I see the point about the price of parts going up if they are from China in particular, and auto manufacturers are known for idling factories to avoid large overproduction. However, this is what I found from Google. Could someone discuss this or poke holes in it?
===================
car prices typically go down during a recession:
Decreased demand: When the economy slows down, consumers spend less, which reduces demand for goods and services. This includes cars, which are often considered large purchases.
Lower prices to compete: When demand drops, dealers may lower prices to attract buyers.
High interest rates: Car dealers lose money if cars sit on the lot for a long time due to floorplanning costs.
However, other factors can affect car prices, such as:
Supply and demand: When demand increases again, supply may not be able to keep up.
Inflation: Inflation can also impact car prices.
Production shortages: Production shortages can lead to higher prices.
In 2024, Cox Automotive data shows that new car transaction prices are falling, which is putting downward pressure on the used car market.
We bought our “new” car 4 years ago. Just before things started getting nuts, supply-wise (even though at that point we were 8-10 months into the pandemic). For several years, we got frequent letters from the dealership saying essentially “We’d LOVE to buy your car!”. And each one got round-filed, as we rolled our eyes and said “and then we’ll drive… what?”.
