John Connelly has noticed a theme among some customers who enter his Acura dealer: they are worried about prices.
President Donald Trump’s latest prices, which will take effect on Wednesday, include a 25% right on imports of passenger vehicles and car parts. Some consumers are now reacting by buying a new car now instead of paying a higher price after the prices affected, according to analysts and a BI dealership has maintained.
Some customers who have stopped at Connelly’s Columbus, in the Ohio region in recent days, have wanted to know how much the price – as well as an increase in the local sales tax this week – could increase the price of a new car, said Connelly.
“There have certainly been raised questions”, to many customers asking “what we think of being with the prices,” Business Insider Connelly told Business, who is also a former president of the American Automobile Dealers Association.
“When you buy a car of $ 60,000, it really addresses,” he said.
Automotive prices are part of a set of tasks that Trump should implement Wednesday, that the president nicknamed the “Liberation Day”. The other imports that could face new prices include goods from Canada and Mexico, as well as agricultural products.
Many potential prices or prices that Trump and his administration have discussed threatening relatively inexpensive articles, such as bottles of tequila or fresh salmon.
But the prices could add thousands of dollars to the price of cars, which are a big investment for many households with intermediate income.
“Many people who thought they were buying a vehicle is now rushing to buy before the end of the month,” said Charlie Chesbrough, principal cox Automotive economist on Friday.
Part of the concern is that higher prices on the prizes of dealers will follow the prices.
JPMorgan analysts estimated at the end of March that the 25% price could add almost 9% to the average retail price of a new car if companies were fully price for buyers.
The price may not affect new cars, said Connelly, the Columbus car dealer. Car manufacturers could decide that cars and parts made outside the United States could be more profitable if sold in other countries due to prices, he said.
It also expects the prices of used cars to increase under the price as stocks are limited.
Connelly said that many car buyers do not have as much money to burn on big purchases as during and immediately after the pandemic. At the time, many consumers had savings to burn thanks to government recovery checks and unless you spend on things like plane trips.
“Many people had money in their pandemic pockets,” he said. “This money has dried, so there is less ability to bounce back.”
Do you have a story about how prices or threat of prices affect your business or life? Contact this journalist at abitter@businessinsider.com
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