Dealers Coping With Tariff Shift. 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 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 is 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.
Dealers Coping With Tariff Shift. 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.