Don’t Wait on Trump’s Tariffs: 5 Ways To Negotiate the Best Price on a Car While You Can

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If you were hoping for car prices to fall in 2025, there’s some bad news. From 2014 to 2024, the average price of a new car has risen from $32,250 to $48,750, or 51%, according to Axios. And although inflation has greatly subsided from its 9.1% peak in the summer of 2022, there’s another boogeyman on the horizon — tariffs.

As of May 3, 2025, tariffs of 25% on foreign auto parts went into effect, potentially pushing up the price of a new car by $2,500 to $20,000 or more, according to Anderson Economic Group. Regardless of what the final amount becomes, it’s apparent that new car prices, especially for those produced or assembled overseas, are on the rise.

If you’re in the market for a new car, the time to act is sooner rather than later if you’re looking for the best prices. Here are some tips to negotiate while you still can.

Get Ahead of the Curve

For some dealers, it’s already too late to beat tariff-related price increases. But for many, it’s not. The only way to know for sure is to shop around.

Don’t be afraid to check out prices at local area lots in person and/or compare prices dealers are advertising on the internet. In a competitive environment, dealerships that are avoiding tariff price increases will no doubt make that policy known. Look around and you can still find them.

Use Internet Pricing Services

The internet has made shopping for a vehicle a much easier process. Internet pricing makes it easy to compare prices and even get competing bids on the same or similar vehicles in a matter of minutes. At a glance, you can see right away which dealers are imposing surcharges for tariffs and which are not. In many cases, internet pricing can be even better than what you can get in-person at a dealer, even if you’re an expert negotiator.

As a side benefit, many buyers also prefer the no-hassle experience that internet pricing provides. 

Look At Domestic Brands — or at Least Those Assembled in the US

As the new tariffs only apply to cars and parts manufactured outside of the United States, you may be able to beat them by purchasing a made-in-America vehicle. Just be aware that this is an imperfect strategy, as it can be confusing to find vehicles that avoid tariffs entirely.

For example, even domestic manufacturers like Ford and GM use foreign parts for many of their cars, which may make them tariff-eligible. On the other hand, some foreign car companies actually build and/or assemble their cars in the United States, potentially allowing them to avoid tariffs.

Bargain With Dealers

Regardless of the economic environment, one of the best ways to get a good price on a car is to be a good negotiator.

Being flexible can be a good start. Don’t be too tied to a particular car, color or even model. Don’t feel pressured to buy a vehicle, no matter how much time you’ve spent with a particular dealer. Do some research and shop around so you have some knowledge of what a fair price should be — and if there are any local dealers that aren’t marking up cars due to tariffs. If you encounter a dealer asking for a tariff-adjusted price, don’t be afraid to walk away if they aren’t willing to match lower prices in the area.

Consider Pre-Owned Vehicles

Another money-saving strategy to employ in any market environment is to consider a pre-owned vehicle. According to CNBC, the average vehicle depreciates in value by about 20% in its first year and a whopping 60% after five years. As the average new car costs about $48,000, this means you could snag a used vehicle after a single year for roughly $38,400, a savings of $9,600. Meanwhile, you’d still be buying a vehicle with two or more years left on its original manufacturer’s warranty. While a five-year-old car won’t likely still be under warranty, you may be able to save nearly $29,000 off its original price. 

However, even with a used vehicle, you shouldn’t dally. Experts anticipate used car prices to rise perhaps just as much as those of new vehicles, as demand for these cheaper alternatives increases.

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