DENVER (KDVR) — With new tariffs on cars and auto parts expected to go into place next week, prepare to see not only a jump in costs of new vehicles but also used ones and repairs as well.
Those new tariffs are set to begin on April 3 and could expand even further in the weeks to follow. The Colorado Automobile Dealers Association said this is expected to hit your wallet in several different ways, with new vehicle prices expected to rise.
“And that could be anywhere from zero to 25% higher than it is today,” said Matthew Groves, President and CEO of the Colorado Automobile Dealers Association.
He said there is a lot of uncertainty, however, especially around when exactly prices could rise.
“It’s going to depend on which type of car you’re looking for and how that individual company is responding,” said Groves.
Some companies may increase costs immediately, while others could choose to eat their losses for as long as they can, and with the tariffs impacting auto parts as well, many may not realize that even your American-brand vehicle could see repair costs go up.
“I don’t think, you know, the average F-150 owner, for instance, knows which parts are American versus which parts, or final assembly, are international,” said Groves.
Used car prices will likely rise, too, as demand increases, but expect that to come with a delay. He does, however, believe that consumers will continue to have options even if uncertainty looms right now.
“For every action, there is an equal and opposite reaction, right? So the market will respond to this and figure out how to best make cars affordable to their consumers,” said Groves.
There’s also been talk about insurance prices going up with those tariffs. Groves thinks coverage costs won’t be immediately impacted because the vehicle’s value isn’t changing, but he said it’s something to keep an eye on.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
