Will the tariffs affect prices currently on lots?

[Highpi]

I've been hemming and hawing about buying a Lightning for a while now and was wondering A) how the tariffs will affect Ford, in general and B) cause dealers to markup prices on their current inventory, even though they have been sitting on the lot for a long time?
Or am I just overthinking this?

I'm finally at a point where I might pull the trigger, but was curious about the above questions. I'm interested in a '24 vs a '25.

Sponsored

 

[digitys]

I don’t think anyone really knows until they are actually active. It’s mostly threats right now, at least I thought so.

 

[The Weatherman]

I've been hemming and hawing about buying a Lightning for a while now and was wondering A) how the tariffs will affect Ford, in general and B) cause dealers to markup prices on their current inventory, even though they have been sitting on the lot for a long time?
Or am I just overthinking this?

I'm finally at a point where I might pull the trigger, but was curious about the above questions. I'm interested in a '24 vs a '25.

Only at the sleaziest of sleazy dealers. Any reputable dealer will NOT markup their current inventory.

 

[Altivec]

If I were you, I would pull the trigger now. Even if the general auto tariff is a bluff, which it doesn't look like it is, the aluminum tariff alone is already going to cause issues since the lightnings body is aluminum. Then you have the unknown April 2nd tariffs and then the retaliatory tariffs from Canada that will be coming. I look at it this way. What are the probabilities of prices going down or up. I can say with certainty that it isn't going down but there is a lot of potential for it to go up. To me that says either buy now or be prepared to pay more with a possibility to pay a lot more.

 

[Monkey]

Another reason to buy now, if you can find a '24 to your liking, is that the '25s don't offer any improvements or changes, fewer color choices and the battery on the Flash is smaller. Great finance deals and other incentives right now on the '24s.

 

[RocketGhost]

I suspect dealers would only increase prices (or not discount as much) if the competition raises theirs and/or there's a spike in demand. I don't think much of the price increases (for new) will come from the dealer side, they will come from the automakers, either as a MSRP increase and/or reduced incentives (rebates, etc.).

And yes, manufacturers can change the MSRP for cars still on lots. They can also revoke incentives (e.g. rebates) before their published expiration date.

My prediction is that we won't see a bump in prices until manufacturers increase the prices. Then it will trickle down to cars still on lots and to used. We don't know when they will do so, but it's inevitable at this point. Once they do prices across the board will creep up, possibly quite quickly.

Also keep in mind cars are priced for what the market will bear. Even if a car is 100% USA tariff-free (which doesn't exist) it's price will likely go up too - the competition raises theirs, so the USA car would be underpriced and money will be left on the table. I doubt automakers will raise prices only on the models hardest hit by tariffs, I think they will spread them out across board. Everything will go up.

 

[Henry Ford]

 

[Acottrell]

Curious how this will affect current values as well as I’m looking to trade in my ‘22 due to a change in family needs. Lots of unknowns with how used markets will react. I had enough of a heart attack seeing the first couple trade values I received, so hoping this will boost trade values a touch.

 

[RickKeen]

When the recession kicks in, (if you still have a job and can afford to buy a vehicle), there may be some good deals and incentives as everything comes to a halt and mfg and dealers get desperate for what few sales they can eke out.

 

[ryun]

Nobody really knows but I will mention this: during the start of the tariff wars back in the first Trump term washers were called out, but dryers were not. So washing machines were priced higher to factor in the tariffs. The price for dryers stayed mostly unchanged at first, until the manufacturers realized they could increase the price of the dryers too since they're usually sold in a set. The thinking went that since it was a set the higher price of the dryer would go unnoticed.

 

[Heliian]

The answer is yes. Of course.

 

[NW Ontario Ford Lightning]

I'm finally at a point where I might pull the trigger, but was curious about the above questions. I'm interested in a '24 vs a '25.

With the slow down in sales, Ford Motor Co taking 10k off the MSRP and the Dealer motivated to move the last few 2024's off their lot in Jan/Feb - and knowing 'turmoil' was likely coming soon, I got my lightning at a good price Feb 2025 on a 2024 model.

If you can get the truck at the lowest price since launch go for it.

 

[22legit2quit]

If you want it, get it. Tariffs will be problematic, but the dealers are still in big trouble from COVID. You can squeeze them right now, especially the ones in smaller areas where a lightning doesn’t sell well.

 

[RickLightning]

Tariffs can only be levied on products coming into the country. Pricing on products already in the country depends on the manufacturer and the dealer.

 

[Nikos]

I suspect dealers would only increase prices (or not discount as much) if the competition raises theirs and/or there's a spike in demand. I don't think much of the price increases (for new) will come from the dealer side, they will come from the automakers, either as a MSRP increase and/or reduced incentives (rebates, etc.).

And yes, manufacturers can change the MSRP for cars still on lots. They can also revoke incentives (e.g. rebates) before their published expiration date.

My prediction is that we won't see a bump in prices until manufacturers increase the prices. Then it will trickle down to cars still on lots and to used. We don't know when they will do so, but it's inevitable at this point. Once they do prices across the board will creep up, possibly quite quickly.

Also keep in mind cars are priced for what the market will bear. Even if a car is 100% USA tariff-free (which doesn't exist) it's price will likely go up too - the competition raises theirs, so the USA car would be underpriced and money will be left on the table. I doubt automakers will raise prices only on the models hardest hit by tariffs, I think they will spread them out across board. Everything will go up.

I agree with your last sentence of your post. Manufacturers, retailers and other businesses will spread their prices across the board. “Everything will go up”. Most consumers, “Buyers”, won’t notice the difference. 3% here, 4% there to offset the 25% over there.
As I noticed on my last trip to Costco, I saw the price increase from the products that come from outside the US but also the products that are produced within our borders.
That is for staples all of eat and need in our everyday lives.
The cart wasn’t full but definitely the bill was higher by at least 10% or more.
Apart from the politics and the lies floating out there, I was surprised by the “the Thank you’s for shopping at Costco”, as I was finalizing my bill.
Retailers watch each other and so are Auto Manufacturers.
Inflation is going up and interest rates are staying where they are right now, I hope.

Sponsored