We are navigating a rapidly shifting market shaped by sweeping new tariffs on imported vehicles and auto parts. If you're considering purchasing a car, here's what you need to know.

What’s Happening with Tariffs?

Recently, the U.S. government implemented new tariffs on all imported passenger vehicles and light trucks, and imported auto parts like engines, transmissions, and electrical components.

How Much Could Prices Rise?

Industry analysts estimate that tariffs could increase vehicle prices by $3,500 to $12,000, depending on how many imported parts a vehicle contains.

These rising costs are expected to spill over into the used car market, too, as higher new car prices push more buyers toward pre-owned vehicles.

Financing Considerations

With vehicles becoming more expensive, how you finance your purchase matters more than ever. Now is a good time to shop around for competitive rates and flexible terms. Climb offers very competitive auto loan rates and extended terms for lower monthly payments.

How Automakers Are Responding

Auto manufacturers are closely monitoring the impact of recent tariffs and adjusting their operations accordingly. Some companies have temporarily paused financial forecasts due to market uncertainty, while others are exploring ways to adapt their supply chains or shift production to minimize added costs.

Should You Buy Now?

You might want to buy now if:

  • You need a vehicle right away
  • You were planning to buy a car within the next year
  • You’ve found a car priced before any tariff hikes

You can also consider waiting if you want to see if automakers introduce new rebates or incentives.

Tips for Navigating Car Shopping

  • Do Your Research: Look into how tariffs are affecting your preferred makes and models
  • Compare Loan Rates: Shop lenders to get the best financing deal
  • Explore Used Options: Certified pre-owned vehicles could offer great value
  • Watch for Incentives: Car makers may offer discounts or rebates

We’re Here to Help

At Climb, we’re here to help you make sense of these changes and find financing that fits your life. Whether you’re shopping for a new or used car, our team can guide you through your loan options and help you buy with confidence.

Contact us or explore auto loans to get started today.

Note: This article is based on publicly available information as of May 2025. Market conditions and government policies are subject to change. Sources: Source 1 Source 2