US Car Prices Soar in April Following Tariff Impact - NEW BOX OFFICE TO DAY

By Kalea Hall

DETROIT (romero.my.id) - New vehicle prices in the U.S. saw a significant increase in April, according to data released on Monday. This indicates that the impact of President Donald Trump's automobile tariff policies is being felt across the automotive industry.

The average price consumers paid, after discounts and promotions, rose 2.5% from March, more than double the typical 1.1% increase over those two months in recent years, Cox Automotive's Kelley Blue Book showed. In the past decade, the only larger such increase was in April 2020, when prices rose 2.7% during pandemic-related factory shutdowns.

Car manufacturers are adapting to the new 25% U.S. taxes on vehicles imported from numerous nations, such as key trade allies Mexico and Canada. However, very few companies have increased their advertised car prices. In fact, some brands—including Hyundai, Ford, and Stellantis, which produces Jeeps—have introduced special offers to comfort consumers and maintain robust sales figures.

Nevertheless, consumer demand has increased over recent months as purchasers race to avoid potential tariff-induced price hikes, according to statements from dealers and automotive executives. This trend has led to an uptick in the amount consumers typically spend when buying vehicles at dealerships, as reported by Cox.

Even if automakers keep their prices unchanged, consumer beliefs that tariffs might push costs up in the future could have caused inflation for specific vehicle models, according to Erin Keating, an executive analyst at Cox.

The high demand for those models meant that the pricing strategies employed by dealerships probably contributed to driving their prices up.

Last week, Romero.My.Id first reported that Ford is increasing prices on vehicles manufactured in Mexico. According to a notification sent to dealers, certain versions of the Mustang Mach-E electric SUV, Maverick pickup, and Bronco Sport may have price hikes of up to $2,000.

According to Cox’s Manheim Used Vehicle Value Index, wholesale used-vehicle prices saw an uptick in April, climbing 4.9% to reach 208.2 compared to last year, marking a rise of 2.7% since March.

Several car manufacturers stated that promotions have maintained stable pricing across the board.

Todd Szott, who works as a dealer partner at Szott Automotive Group—which includes Ford, Stellantis, and Toyota dealerships in Metro Detroit—mentioned that consumer incentive programs remain quite robust. He also noted that pricing currently appears to be relatively steady.

According to Cox, sales incentives for new vehicles as a proportion of their transaction prices dropped to the lowest level seen since summertime 2024. This metric reflects the extent of discounts and promotional offers provided.

A decrease in the number of cars available at dealerships might indicate that prices will likely rise over the next few months.

During a recent webinar hosted by the Automotive Press Association, Cox Chief Economist Jonathan Smoke pointed out that there are less than 2.6 million vehicles currently stocked at dealerships. He also mentioned that this supply might decrease even more due to increasing sales and lower imports from overseas.

Paul Zimmermann, who co-owns the Matick Automotive Group of Michigan—a company overseeing both GM and Toyota dealerships—mentioned that car inventories have started to dwindle in certain regions following a strong sales month in April.

I do have certain reservations regarding the pipeline," he stated. "At present, it’s operating well, but we must ensure there are no disruptions.

Previously, Cox estimated that new vehicles subject to a 25% tariff might see price increases of 10% to 15%, whereas those unaffected by the complete tariff could experience hikes of around 5%.

Keating doesn’t anticipate such high figures anytime soon, though possibly in the future. She also mentioned that automakers might take advantage of the transition period between model years during the summertime to make pricing adjustments.

(Reported by Kalea Hall; Edited by Mike Colias and Richard Chang)