I Work at a Car Dealership: 6 Car Brands Whose Prices Might Decline if Harris Wins the Election
Written by
Vance Cariaga
Edited by
Travis Woods
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Until recently, there was a clear distinction between Vice President Kamala Harris and ex-President Donald Trump in terms of policies that could impact auto sales and prices. Harris was seen as the 2024 presidential candidate most aligned with clean energy because of the Biden administration’s aim to bolster electric vehicle sales. Trump was seen as the candidate supporting increased oil production and gas-powered cars.
But conventional wisdom was turned on its ear following the September 10 presidential debate. As the AP reported last week, Harris — a longtime “climate hawk” who supported the original Green New Deal — has lately championed the Biden administration’s record on oil production.
Republican strategist Liam Donovan told the AP that Harris has now chosen to “brag about something that President Biden has barely acknowledged — that domestic fossil fuel production under the Biden administration is at an all-time high.″
Crude production averaged 12.9 million barrels a day last year, topping a previous record set in 2019 under Trump, the AP reported, citing data from the U.S. Energy Information Administration.
Meanwhile, Trump’s support for high tariffs on imported goods — including cars — has painted him as the candidate most likely to push trade wars and send prices on foreign cars higher. But there are shades of gray here as well.
During the debate, Trump accused the Biden administration of letting Chinese-owned companies build plants in Mexico to sell cars in the U.S., CBT News reported.
“We will put tariffs on those cars so they can’t come into our country,” Trump said.
Yet as CBT noted, Biden has already raised tariffs on Chinese-made electric vehicles to 100%. In response, BYD, China’s top EV manufacturer, delayed plans to build a plant in Mexico until after the election.
Because the differences between Harris and Trump might not be as stark as some think, it’s difficult to say which candidate would most impact prices at car dealerships — if they impact them at all. Car prices are largely determined by the normal economic forces governing supply and demand, according to industry professionals, and many are hesitant to project how a Harris presidency might impact prices on individual models.
“This is not something we would be able to predict,” Jared Allen, spokesperson for the National Automobile Dealers Association, told GOBankingRates in an email.
Some experts suggest that presidents have very little impact on car prices, regardless of who is in office.
“I don’t think either one will have much effect on the car business world unless one of them has a policy change in mind a la ‘cash for clunkers’ that would impact it negatively or positively,” said Brian, a veteran car salesman in the Southeast who spoke to GOBankingRates on the condition that only his first name be used.
“Cash for Clunkers” was the name given to the Car Allowance Rebate System (CARS) program signed into law by President Barack Obama in 2009. According to the National Archives, the program provided $3,500 or $4,500 bonuses to buyers who traded in certain types of vehicles and bought those with lower gas mileage.
The Congressional Research Service determined that incremental vehicle sales prompted by CARS rebates varied from 125,000 to more than 500,000, depending on how many of the sales were assumed to have been pulled forward from later in 2009 or 2010.
“That was one of the best things to spark sales inside of the dealership,” Brian said. “By the time Obama finished his two terms and Trump got in I don’t know that I noticed much a of a difference, other than when rates dropped and people could buy more expensive cars.”
The COVID-19 pandemic “really made cars a lot more expensive,” he added. Although those high prices are still around, there are signs that prices are easing.
“It seems that as inventory increases and cars sit on lots longer the deals are slowly starting to trickle back in,” Brian said. “But I certainly don’t want to go car shopping any time soon.”
As to which car models might see prices move lower under a Harris presidency: One thing to keep in mind is that the vice president is still considered a key supporter of environmental policies that would limit carbon emissions and bolster EVs, hybrid vehicles and fuel-efficient cars.
As a blog on the Motor Finance Online website noted, Harris was instrumental in promoting the Inflation Reduction Act (IRA), which aims to cut greenhouse gas emissions by up to 42% below 2005 levels by 2030. She has also called for “federal legal action against the fossil fuel industry.”
If Harris wins in November and adopts a climate program similar to Biden’s, it could mean higher demand for fuel-efficient cars and lower demand for gas guzzlers. In this case, vehicles with low gas mileage might see prices drop.
Here are six brands whose prices might decline if consumers shy away from cars that don’t get good gas mileage. The manufacturer’s suggested retail prices (MSRPs) and estimated fuel costs were sourced from the American Council for an Energy-Efficient Economy. To put these fuel costs in perspective, the most fuel-efficient cars have annual costs below $1,000.
Ram 1500 TRX 4×4
- MSRP: $98,335
- Estimated annual fuel cost: $3,819
Ford F150 Raptor R
- MSRP: $79,975
- Estimated annual fuel cost: $3,777
Dodge Durango SRT
- MSRP: $74,995
- Estimated annual fuel cost: $3,332
Jeep Wrangler 4dr 4X4
- MSRP: $35,895
- Estimated annual fuel cost: $3,260
Jeep Grand Wagoneer 4×4
- MSRP: $91,945
- Estimated annual fuel cost: $3,058
GMC Sierra
- MSRP: $37,700
- Estimated annual fuel cost: $3,06
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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