If you’re still on the fence about buying a new vehicle, you might want to take the plunge as Consumer Reports says prices will likely rise in the future.
A combination of different factors are in play including President Trump’s growing trade war. Only a handful of models are currently affected, but previous reports have suggested tariffs on Chinese-made automobiles could raise the price of the Buick Evision by up to $8,000.
Foreign-made models aren’t the only ones in danger as the Trump administration is also investigating whether or not automobile and parts imports are a threat to national security. If the government determines they pose a risk to America’s interests, they could be hit with a 25 percent tariff.
This would impact a number of different models including American-made vehicles such as the Toyota Camry. Last month, the automaker described the potential tariff as a “tax on consumers” that raise the price of the Camry by $1,800.
More recently, the President threatened a 20 percent tariff on vehicles imported from Europe. LMC Automotive’s director of vehicle forecasts, Bill Rinna, told Consumer Reports this could raise the price of these vehicles by $4,000 to $5,000.
Tariffs aren’t the only thing putting upward pressure on prices as interest rates are rising. As a result, zero percent interest deals are becoming increasingly rare and this means consumers will be making higher payments for vehicle loans and leases.
There’s still a lot of uncertainty about the future, but Consumer Reports says there are plenty of deals available right now as companies are trying clear out existing inventory to make room for 2019 models. Buyers can also expect to find good deals on fuel-efficient cars as many consumers want crossovers and fuel prices have remained relatively stable.