6 Ways To Sidestep Rising Car Prices If Tariffs Take Hold
Written by
Emily Fowler
Edited by
Zuri Anderson
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With auto prices already inflated since the pandemic, proposed tariffs on imported vehicles could make matters worse. According to Reuters, tariffs could add as much as $12,000 to the cost of an imported car, a blow most Americans simply can’t absorb.
A recent JDMBUYSELL survey found that nearly 2 in 5 say they can’t afford any increase in vehicle costs, and over half believe the proposed trade measures are more political than practical.
While 47% still hope to buy a car in the next year, most are rethinking how. Here’s how many are navigating the financial landmines and avoiding sticker shock if tariffs take hold.
Shop the Used Market
Used cars are quickly becoming the go-to workaround. With 17% already shifting focus to the secondhand market, the demand for reliable, lower-mileage models is expected to spike. Among Gen Z, used cars are the clear frontrunner, with 37% saying they’ll buy pre-owned instead of paying tariff-inflated prices for new imports.
Go Domestic
Thirty-seven percent of U.S. drivers said they’d opt for an American-made car if tariffs hike prices. It’s a practical pivot that could save thousands. Domestic automakers stand to gain the most, especially from boomers and Gen Xers, who are drawing a hard line on price. For many, the trade-off in style or features is worth avoiding the financial hit.
Downgrade Without Sacrificing
Twenty-five percent plan to downsize or downgrade their expectations. Swapping out a premium brand for a budget-friendly make or choosing a lower trim level are becoming popular strategies. Among Gen Z and millennials, flexibility matters more than prestige — and that mindset is spreading across other age groups as prices climb.
Pick Efficiency Over Flash
Making savings over the longer term, with things like greater fuel efficiency, is also shaping decisions around buying. Twenty-two percent say they’d shift to more efficient vehicles to offset higher upfront costs, and the logic makes sense; if prices go up, saving money on things like fuel matters even more.
Hold Off Entirely
More than half of Americans plan to hit pause on buying a car altogether. Delayed deals are now a key coping mechanism, especially for low- to middle-income earners. For buyers who aren’t under pressure to upgrade, waiting out the policy changes could avoid thousands in extra costs.
Reconsider the Electric Option
Despite the hype, only 6% said they’d switch to an electric vehicle (EV) like Tesla or Rivian to dodge tariff costs. But younger buyers seem more open to it, with nearly 1 in 3 Gen Zers at least considering the switch, and 14% said they’d go electric even if prices rise, a rate nearly five times higher than among boomers.
The path forward isn’t clear. With 40% of Americans expressing zero faith in federal trade policy to protect ordinary drivers, most aren’t waiting for government solutions. Instead, they’re adjusting buying plans, exploring alternatives and bracing for more expensive decisions ahead.
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