The tariffs implemented by President Trump have dominated the news cycle for months. Whether it’s the tariffs on auto parts and imported vehicles or the more general reciprocal tariffs the president announced back in April, it’s been hard to avoid the constant stream of new updates and potential impacts.
It appears that the onslaught of tariff news is finally taking its toll on consumers. About 44 percent of in-market car shoppers said tariffs will definitely influence their purchase decisions, according to new survey data from Edmunds. Another 31 percent acknowledged tariffs would somewhat factor into their plans. Only a small percentage, 17 percent, claimed that tariffs wouldn’t impact their buying at all.
The Emotional Toll on Car Buyers
For many, this isn’t just a causal choice. The psychological pressure of potentially higher prices is motivating shoppers to reconsider when and what they buy. Edmunds’ data suggests a noticeable shift in behavior as some shoppers accelerate their timelines, aiming to lock in current prices before potential tariff-driven increases take effect. Simultaneously, others are holding back, waiting for clarity on how the tariffs will unfold and whether prices will stabilize.
This tension is particularly pronounced among buyers who feel confident about their understanding of how tariffs affect prices. 55 percent of shoppers believe they have a good grasp of tariff implications, further fueling a mix of proactive and defensive strategies. The 21 percent who said they weren’t confident at all are more likely to hold off until the impact becomes clear.
This difference in response highlights the uncertainty hanging over buyers. While some feel compelled to act quickly, others are paralyzed by indecision. This uncertainty is further amplified by the constant changes to the tariff policies themselves, making it difficult for even informed buyers to forecast how the market will evolve.
A Shift Toward Used and Certified Pre-Owned Vehicles
Another significant trend triggered by tariff concerns is the growing interest in used vehicles, particularly certified pre-owned (CPO) options. According to the survey, 58 percent of respondents are more interested in used vehicles than new, and 46 percent of those eyeing used cars are leaning toward CPO models. This shift reflects a broader perception that used vehicles may be less impacted by tariffs, offering a potential safety net against rising new-car prices.
However, this growing demand for used cars is colliding with a pre-existing challenge in the market: limited inventory. The lingering effects of the microchip shortage and historically low lease volumes over the past three years have resulted in fewer near-new vehicles being available. For shoppers, this means higher competition and potentially higher prices for desirable used models. For dealers, meeting this demand with increasingly limited inventory creates a tricky balancing act.
Prices Flat on New Cars for Now
Despite the looming tariff impact, prices of new cars have yet to reflect any dramatic increases. The average transaction price (ATP) for a new vehicle in April 2025 was $48,422, which is 2.2 percent higher than the same time last year and 2.7 percent higher than March 2025. This moderate increase suggests that the market is still finding its footing, and any drastic spikes might be further down the road if tariffs persist.
That said, automakers are taking targeted steps to brace for potential impacts. Some are adjusting suggested retail prices for specific models, while others are limiting production or availability in affected segments. While these actions haven’t yet caused widespread disruptions, they reflect the underlying tensions and the delicate balance automakers are trying to maintain. When every automaker has a slightly different response it becomes hard for consumers to know what to expect.
Implications for Dealers
Dealerships are also feeling the pressure. With consumer buying patterns disrupted, forecasting demand becomes an even greater challenge. Traditional metrics like seasonality and historical sales data lose some predictive power when shoppers are acting out of fear or uncertainty.
For dealers, the key to navigating this turbulent period lies in adapting inventory strategies to match shifting consumer preferences. With more buyers moving toward used and CPO vehicles, ensuring a steady supply of high-demand models will be critical. At the same time, providing education and transparency about the potential effects of tariffs could help alleviate buyer anxiety and build trust.
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