Will the tariffs affect prices currently on lots?

[NW Ontario Ford Lightning]

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.

Very true,
I stopped yesterday at a GM dealership - they have a charging station I wanted to try out.
So while I had 20 minutes during charging, I talked to the sales manager - looking around on a Saturday mid-morning and no other customers in the place. The manager was with four other staff when I entered the place, but they scattered on que to 'go look busy'.

I said my daughter is interested in a new or few years old used car, and has asked for me to help her pick something out.
The dealer hyped the coming cost increases - "better act quickly" he said.
So I point out that tariffs don't affect the cars already on the lot - and the lot here looks very full.

Without any hesitation he is telling me that the cost will go up on All the cars, even the used ones, as soon as any tariffs affect the new car prices.

Yeah, they are trying to pursude people to "buy now" , but I believe they really will hike up the costs on all the inventory, given any chance to do so, and generally get away with it.

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[thunderbayterry]

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.

I think you should BUY NOW.

I'm Canadian, and I've been following the news on the Tariffs closely. I've heard on both FOX and also the other news channels that Car Dealerships are loading up their inventory because THEY expect prices to go up - both in Canada and the US. I've heard multiple "pundits" state that they believe Auto Prices will go up - both in the US and Canada - by this summer. So buy one NOW.

Personally, I just bought my wife a new EV last week because I believe this to be true.

 

[pullinggs]

Without any hesitation he is telling me that the cost will go up on All the cars, even the used ones, as soon as any tariffs affect the new car prices.

It's not just cars... this is essentially the universal result of a tariff:

The price of the imported widget goes up due to the tariff, so the domestic widget price goes up to follow (because why leave profit on the table when you don't have to compete?), and then any used widget market follows suit. Consumers get screwed. Economics 101.

 

[22legit2quit]

Similar thinking happened with gas prices long ago. Then when demand went to almost nothing because of the recession it was like they couldn’t give it away. If you’re in a market that they (evs) don’t sell well you’re in a good spot. If you’re in one where it’s competitive then expect a markup. Both of which probably already occur in normal conditions, just potentially much more so.

I’ve been to several lots (20+) all the name brands, ford, ram even top end stuff like Audi and Mercedes. The differences that I’ve noticed is that this seems the higher end stuff stays fairly stable. Most likely because the market isn’t as large as someone buying an ICE F150 or Honda accord. If you’re a buyer and you have cash and/or excellent credit in the US you can write your own ticket as to what you want to pay as long as it’s reasonable. If you can’t come to Arkansas and I’ll find you a lightning in whatever color you want under MSRP. No, I’m not a dealer. Don’t buy a used EV or a used anything unless you’re getting it around the auction price because you’d be shocked at the markup, I’m not kidding. Best of luck!

 

[Firn]

Remember, buying a new car is at luxury item for most people. And that only a very small percentage of consumers are buying a new car in any given year.

My guess is that the increases in price on everything else will cause a significant slowdown in new car sales. If so prices would likely go down, not up (good for consumer, bad for manufacture).

 

[Altivec]

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.

Yes... But the OP said he is from Canada. If the US is imposes tariffs on Canadian Auto's like they said, there is a good chance that Canada will retaliate with a 25% tariff on US auto's. These are all what if's but if I was in the market and saw a deal now, I would take it and avoid all the what ifs.

 

[Altivec]

Remember, buying a new car is at luxury item for most people. And that only a very small percentage of consumers are buying a new car in any given year.

My guess is that the increases in price on everything else will cause a significant slowdown in new car sales. If so prices would likely go down, not up (good for consumer, bad for manufacture).

For sure, it's going to hurt the auto industry and sales will drop. But margins aren't very high to begin with. I think they are going to have to reset and lay off a lot of people to make up the losses. If there is a 25% tariff on finished autos placed on American cars going into Canada, there is no way Ford can lower a vehicle that much to offset it. Maybe in the US there might be some deals, but again they are paying 25% more for steel/aluminum and a lot of their parts. Not sure how low they are going to be able to go.

 

[RickLightning]

I think you should BUY NOW.

I'm Canadian, and I've been following the news on the Tariffs closely. I've heard on both FOX and also the other news channels that Car Dealerships are loading up their inventory because THEY expect prices to go up - both in Canada and the US. I've heard multiple "pundits" state that they believe Auto Prices will go up - both in the US and Canada - by this summer. So buy one NOW.

Personally, I just bought my wife a new EV last week because I believe this to be true.

I never listen to pundits. Talking heads always have an agenda, especially the F word ones.

I encourage you look at the online inventory of some dealerships and see for yourself. You can use the Wayback machine to see the inventory say on 12/1, then 2/1, and now and see how it's different. Then make sure you think about things like model year changes that impact inventory...

Keep in mind that they can order only what they're allotted, then they have to wait for customer orders.

Will prices go up? Yes. Will Ford and other companies increase stickers of vehicles on the lot? I don't think so. Will dealerships push for more money with scare tactics? Absolutely.

 

[NW Ontario Ford Lightning]

Auto-parts go both ways across the Canada-USA border, ditto Mexico - the whole works is a huge interconnected machine. I know people who work in Ontario making parts for assembly plants in Canada, US and Mexico all in the same plant.

Locally here I see a lot of Honda CRV and Toyota RAV4 (both assembled in Ontario) - but you know there are parts in these cars that literally come from all over the world. A starter motor could be from Germany and an Alternator from Japan, Headlight sets from Oshawa Ontario and Car Panels stamped in Ohio with steel from Quebec ...on and on. It is an international omlete with everyone doing what they do best to get the lowest price overall price, with best delivery.

In Canda during the 1990's we were worried our high wages would mean disaster when the original NAFTA in was signed, but that's not what happens, low cost of energy and abundant resources keep our supplies competitive, high tech industry in USA does the heavy lifting, low cost labour in Mexico does assmbly - we all win, and consumers get the best overall delivered product and price.

 

[Grease Lightning]

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

Not sure it that is true. I could see Ford not providing as many incentives as the new ones just went up $X.
So if that is what happens, I don’t think it is sleazy, just basic economics and exactly what President Brain Dead is wanting as it is already forcing manufacturers looking are moving back to the states.
So if you want to blame a sleazy person, they live on Pensilvania Avenue and at a brothel in Florida.

 

[Altivec]

Not sure it that is true. I could see Ford not providing as many incentives as the new ones just went up $X.
So if that is what happens, I don’t think it is sleazy, just basic economics and exactly what President Brain Dead is wanting as it is already forcing manufacturers looking are moving back to the states.
So if you want to blame a sleazy person, they live on Pensilvania Avenue and at a brothel in Florida.

I just don't see manufacturing everything in the US is going to happen. If it does, the US will have to permanently lock out every foreign auto because US cars will be so expensive to build that if they don't lock out foreign auto's nobody would buy them. The cars will also be relegated to only being sold in the USA and lose global scale which even makes them more expensive. Manufactures know this. They are not going to invest billions and make drastic changes on a whim of trumps on and off tariffs. The auto manufacturers are going try to ride this out and maybe say they are going to add a little parts factory here or there to make him happy. If he is stubborn and sticks with these tariffs, the US economy will eventually crash and the T-man is going to be forced to relent or lose the US auto industry completely.

 

[Highpi]

A lot of good points, thanks.

I'm going to take a look at '24 Lariat on Wednesday. With all their discounts they have it listed at 68k. No bed liner, though.
Not pulling the trigger just yet, but I wonder if there is a little more wiggle room.

 

[Scorpio3d]

A lot of good points, thanks.

I'm going to take a look at '24 Lariat on Wednesday. With all their discounts they have it listed at 68k. No bed liner, though.
Not pulling the trigger just yet, but I wonder if there is a little more wiggle room.

Dealers can have a bedliner installed, whether that is a spray in liner or one of the preformed type. Most dealers will work with a local installer for a spray in bedliner.

 

[MidAtlanticLightningClub]

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

Oh, you mean like reputable dealers wouldn't put big markups on high demand vehicles?

Just look at what happened all over the country when Lightnings first came out. I'll bet the majority of dealers slap tariff surcharges on every vehicle on the lot. If you make a really good deal, you might be able to bargain them back down to MSRP.

 

[MidAtlanticLightningClub]

Very true,
I stopped yesterday at a GM dealership - they have a charging station I wanted to try out.
So while I had 20 minutes during charging, I talked to the sales manager - looking around on a Saturday mid-morning and no other customers in the place. The manager was with four other staff when I entered the place, but they scattered on que to 'go look busy'.

I said my daughter is interested in a new or few years old used car, and has asked for me to help her pick something out.
The dealer hyped the coming cost increases - "better act quickly" he said.
So I point out that tariffs don't affect the cars already on the lot - and the lot here looks very full.

Without any hesitation he is telling me that the cost will go up on All the cars, even the used ones, as soon as any tariffs affect the new car prices.

Yeah, they are trying to pursude people to "buy now" , but I believe they really will hike up the costs on all the inventory, given any chance to do so, and generally get away with it.

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