Tariff Alert –Insider Info From Last Weekend’s Sales. What Dealers Are Doing to Cope With this Seismic Shift.

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Tariffs are expected to be implemented shortly on imported vehicles. This is causing a
significant effect on vehicle sales and prices. Here is some information that has been
shared with DealerXT.

As of last weekend (March 29-30, 2025), sales of vehicles at new car dealerships have
skyrocketed because customers expect a 20-25% increase in price hikes for
imported vehicles. Additionally, dealerships are not giving many discounts, and some in
fact have reported that they have increased their retail prices by $1,000 to $1,500 per
used car, and have also eliminated or reduced their advertisements and/or deleted their
advertised prices. Some new car dealerships are reporting massive profits just for last
weekend. Another dealer has reported that as of this week, they were unable to
purchase the usual 20-25 cars they buy per week at auction and were only able to buy 2
cars this week.

Dealerships are comparing this period to the one right after COVID, except for
Interest rates are higher now.

What does this all mean?

Dealers seem to be preparing for an increase in vehicle prices as well as parts prices.
Interest rates for financing vehicles are still high. What this translates into are unhappy
customers, especially if they run into car problems a short time after the sale and who will
have to pay high prices for repairs and routine maintenance.

DealerXT’s Prediction on Future Litigation

Customers who need cars have no choice but to buy cars even if they are expensive.
This may mean that customers who will no longer be qualified to buy cars might make
misrepresentations on their credit application. Others are willing to take older cars that
are less expensive, but will most likely need repairs shortly after purchase. These
customers will be easy targets for some plaintiff’s law firms who will gladly help them
with all the excuses and all the reasons for the customers who make up stories about
“verbal” misrepresentations regarding the condition of the vehicle, the concealment of a
vehicle’s condition, or problems that the vehicle developed after sale.

Similar to the period after COVID, DealerXT predicts that the number of lawsuits by
unhappy customers will increase manyfold. We recommend that our members
continue to use the SafeDealsAI Software to minimize claims of verbal
misrepresentations and potential settlement amounts. Also, just as a reminder, as part
of your membership, Auto Legal Group provides you with free settlement agreements if
you arrive at a resolution with a customer, so that they don’t come back again and again
in the future after you helped them out with the vehicle once.