Car shoppers rush to buy before May tariffs deadline on imported auto parts

DELAND, Fla, - A car dealership in DeLand is reporting a spike in people car shopping, as they look to purchase before any tariff-induced price hikes. This comes as the value of pre-owned vehicles is also spiking.

‘Your car is worth more than it ever could be’

What we know:

A car dealership in DeLand is seeing an increase in customers looking to buy vehicles before new tariffs potentially raise prices. Starting May 3, a 25% tariff on imported auto parts will take effect, adding to existing tariffs on foreign-made vehicles. Some manufacturers are preemptively adjusting prices, with Nissan lowering costs on certain models to ease consumer concerns. 

Meanwhile, the cost of pre-owned cars has surged at auctions, making new cars potentially a better value for buyers.

What we don't know:

It remains uncertain how much manufacturers and dealerships will ultimately pass tariff costs onto consumers. While some dealers have begun raising prices, others, like Nissan, are attempting to mitigate the impact. 

The long-term effects on the automotive market, including supply chains and domestic manufacturing, are also unclear. Additionally, the extent of consumer demand shifts due to price increases across other industries remains to be seen.

The backstory:

The tariff hikes stem from broader trade policies aimed at protecting U.S. industries by imposing reciprocal tariffs on imported goods. Many of these tariffs target countries that export high-demand products to the U.S., such as automobiles, electronics, and agricultural commodities.

 The measures have led to economic uncertainty, impacting both retailers and stock markets. The automotive industry, in particular, faces unique challenges due to the reliance on global supply chains, even for vehicles assembled in the U.S.

Big picture view:

The tariffs are expected to impact more than just the auto industry. Products ranging from electronics and clothing to sugar and coffee will see price increases due to similar trade policies. 

The stock market reacted negatively, with major companies like Starbucks, Nike, Amazon, and Nvidia experiencing significant drops. As costs rise across multiple sectors, consumers may tighten their spending, affecting businesses and economic growth.

What they're saying:

A car dealership in DeLand is reporting a spike in people car shopping, as they look to purchase before any tariff-induced price hikes.

"This is the brand-new Nissan Murano, it came out brand new for 2025," said Kurt Dye, the General Manager of DeLand Nissan. "It is built in the United States."

Vehicles manufactured outside the United States now face a 25% tariff – that is until next month. On May 3, tariffs will also apply to imported auto parts, meaning the trickle down could be tricky.

"We have heard of dealers and manufacturing already adding the price on. Interestingly enough, yesterday Nissan announced a $1,000 reduction on Pathfinders and Rogues — which is two of our biggest vehicles, so I think they’re trying to offset some of that consumer fear," said Dye.

According to Dye, he has only seen a few dealers raise prices in anticipation of tariff losses, but he did say the price of pre-owned cars has skyrocketed.

"The [price of pre-owned] cars went through the roof at the auction," Dye said. "I think the new car may be a better value right now. Great thing for the consumer right now, is your car is worth more than it ever could be."

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