The used car market is experiencing unusual volatility. Many buyers are wondering if the time is right to purchase a car or if waiting might yield better deals. With seemingly random tariffs affecting automotive imports and manufacturing costs, the relationship between new and used car pricing has become complicated.
Tariffs Drive New Car Prices Higher
Recent tariffs on imported vehicles and automotive parts have created a ripple effect throughout the new car market. Manufacturers are passing these increased costs on to consumers, with some new vehicles seeing price increases of several thousands of dollars.
Even domestic brands aren’t immune, as many rely on imported components for assembly. These elevated new car prices create a cascading effect on the entire automotive market. When new vehicles become less affordable, demand shifts to the used market, which traditionally drives used car values higher. However, this dynamic is complicated by other factors including inventory levels, interest rates, and consumer confidence.
The Case for Buying Now Versus Waiting
The decision to buy now or later depends on your specific situation and market timing. Buying now makes sense if you need reliable transportation immediately, if your car needs a now extremely expensive repair or if you find a well-maintained vehicle at a fair price.
Used car values remain elevated due to sustained new car prices, but waiting carries risks. If tariffs persist or expand, new car prices could climb even higher, further inflating used car values. Additionally, the specific vehicle you want today might not be available later. However, waiting could benefit buyers if tariff policies change or if manufacturers find ways to absorb costs. The used market may also see increased inventory as lease returns accelerate. At A1 Performance Auto Repair, we recommend getting a pre-purchase inspection regardless of timing to ensure you’re making a sound investment.
