From Yahoo Finance: 2025-05-13 12:27:00

The April Consumer Price Index (CPI) report showed new car prices remaining flat, despite expectations of price hikes due to Trump’s auto sector tariffs. New vehicle prices were unchanged from the previous month and up 0.3% year over year, while used vehicle prices dropped 0.5% and were up 1.5% year over year.

Trump’s 25% foreign-made auto tariffs went into effect on April 3, impacting European, Asian, and Big Three automakers like GM, Ford, and Stellantis. Dealers and automakers may have minimized price hikes by using existing inventory, including tariff-free imports, to attract buyers in the competitive new car sales market.

Hyundai, Honda, Ford, and Toyota saw significant sales gains in April, with Hyundai up 19% and Ford up 15%. Price stability could be attributed to automakers guaranteeing pricing through May, but upcoming tariff exposure is expected to lead to supply and pricing pressures in the coming weeks.

Despite stable prices, Deutsche Bank noted that Ford is already raising prices on Mexican-built vehicles, and Kelley Blue Book reported a 2.5% month-over-month increase in average transaction prices at dealerships in April. With tariffs still a possibility, prices are expected to rise, making April’s unchanged pricing a temporary trend.

CarPro reports that industry stock in April dropped to 2.6 million vehicles from around 3 million, with days of supply falling to just over 60. Different manufacturers, like Toyota and GM, maintain varying levels of inventory, but overall supply is decreasing as automakers navigate the impact of tariffs on pricing and sales strategies.

The question remains how long automakers can maintain stable prices in the face of potential tariff hikes and supply chain disruptions. Dealerships are already seeing a reduction in the number of cars on their lots, indicating a shift in inventory dynamics as the industry prepares for future challenges.



Read more at Yahoo Finance: Car dealers shield buyers from tariff price hikes in April