Dealerships Report Shrinking Inventories
As speculation intensifies over a potential return of steep auto tariffs under a second Trump administration, American car buyers are flooding dealerships in a scramble to secure vehicles before prices possibly surge. Car lots across the country are experiencing a spike in traffic, with consumers eager to purchase both new and used vehicles ahead of anticipated policy changes that could drastically alter the cost of owning a car.
The Tariff Threat
President Donald Trump has floated the idea of imposing significant tariffs on foreign-made cars and automotive parts if he returns to office, with numbers as high as 10% to 25% being mentioned in policy discussions and campaign rhetoric. The goal, according to proponents, would be to boost domestic manufacturing and reduce reliance on imports. However, industry experts warn the move could backfire in the short term by dramatically increasing vehicle prices for American consumers.
“Even if a car is assembled in the U.S., it’s likely to contain a substantial amount of imported parts,” said Jennifer Morales, a senior analyst at AutoTrends Research. “Tariffs on those components would raise production costs, and that gets passed directly onto buyers.”
The potential for sweeping tariffs has created a sense of urgency among consumers—especially those who were already considering a purchase in the near future.
Inventory Shrinks as Demand Spikes
Dealerships nationwide are reporting notable increases in foot traffic and online inquiries. According to the National Automobile Dealers Association (NADA), some retailers have seen a 20–30% jump in weekly sales over the past month, as uncertainty about future pricing accelerates buying decisions.
“We’ve been running low on inventory faster than expected,” said Tyler Wong, general manager at Horizon Auto Group in Houston. “It feels like the early pandemic days all over again—people are making offers the same day they test drive. They’re not waiting.”
Wong noted that midsize SUVs and hybrid vehicles have been particularly popular among customers eager to balance affordability with fuel efficiency. Used car sales are also booming, with some buyers turning to pre-owned models to avoid potential sticker shock on new vehicles.
Used Market Feeling the Pressure
The used car market, which had begun stabilizing after years of inflated prices due to COVID-era supply chain issues, is now feeling pressure again. Many buyers are turning to used vehicles as a hedge against potential spikes in the new car market, but growing demand may quickly reverse recent price drops.
“If tariffs go into effect, new car prices will go up, and that puts upward pressure on used prices as well,” said Sarah Kim, a senior economist at the Consumer Mobility Institute. “It’s a domino effect that could affect buyers across every income level.”
Dealers in high-volume states like California, Texas, and Florida report growing waitlists for popular models, and some consumers are even crossing state lines to find better deals before inventories dry up further.
Advice from Experts: Buy Now If You Can
Market analysts and consumer finance experts are cautioning Americans not to wait too long if they’re planning to buy a car within the next six months.
“If you’re in the market now—or expect to be soon—it may be smart to move quickly,” said Mike Caldwell, an economist specializing in consumer markets. “Waiting for election results or confirmation of a tariff plan could leave you stuck paying thousands more later.”
Some financial advisors are also urging consumers to consider pre-ordering vehicles that are expected to arrive later this spring or summer, locking in current prices before any tariff-driven adjustments take effect.
Economic and Political Uncertainty
While the details of any proposed tariffs remain vague and dependent on the outcome of the 2024 election, the fear of unpredictability is enough to drive consumer behavior.
“Tariffs are just one part of a broader conversation about inflation, supply chains, and global trade,” said Morales. “But for the average American, the key concern is simple: Will it cost more to get the car I need next month than it does today?”
For many, the answer is clear enough to act on.
“I wasn’t planning to buy until the fall,” said Rachel Davidson, a schoolteacher in Ohio who recently purchased a new Toyota Camry. “But when I started reading about tariffs, I didn’t want to take the risk. The dealer said the exact model I got might be $2,000 more expensive if tariffs hit.”
A Race Against Time
With more buyers hitting the market and fewer vehicles to go around, competition is intensifying. Some dealers have even started cutting back on incentives or raising prices slightly in response to the spike in demand.
As the auto market braces for a turbulent year ahead, one thing is certain: the race is on. Whether the feared tariffs materialize or not, consumer behavior has already shifted—and for many Americans, now is the time to drive off the lot while they still can.
