You can still get a good deal on a new car — but act fast

Kiersten Essenpreis for BIIf you're looking for a new car, you should buy immediately while pre-tariff inventory is still available.Be sure to shop around for any incentives or discounts to get the best deal possible.This is the fifth installment in BI's six-part series on making major life decisions during this period of massive change.Worries about a possible recession and the Trump administration's tariffs on imported cars have created upheaval not only within the automotive industry, but also for consumers.Automotive-industry experts and dealers told Business Insider that, even though prices are still going up, there are deals to be had while abundant inventory sits on lots — but it may not be that way for long."With the tariffs, sometimes, moment to moment, you're not sure what's going to happen, things could change while I'm talking to you," Beau Boeckmann, president and COO of California-based dealership group Galpin Motors, told Business Insider.The precarious situation has left many car shoppers in limbo, wondering whether they should buy now or wait for the storm to pass. This is the fifth installment of BI's six-part series on making major life decisions in periods of immense policy-driven change. We've already covered best practices for:Starting a businessBuying a houseSwitching jobsInvesting in stocks Buy now, save nowDepleting pre-tariff inventory and higher manufacturing or import costs, leading to impending price hikes, mean you shouldn't wait to buy a new car."I just don't see how it helps someone to wait, assuming they have already decided that they're going to buy a new or used car," Brian Moody, executive editor of vehicle valuation and automotive research firm Kelley Blue Book, told BI.The latest data, from the end the March, shows the automotive industry average at 70 days of supply, totaling just under 2.7 million cars, according to data from Cox Automotive, the parent company of Kelley Blue Book. Sixty days is generally considered a healthy amount of inventory for a carmaker.Ford Mustangs at a dealership in Austin.Brandon Bell/Getty ImagesThere are still good deals to be had if you act fastHowever, upcoming shipments of new vehicles, including Canadian and Mexican-made models whose non-North American-made parts are subject to the 25% tariffs, will likely be affected by the protectionist measures.Experts at the Center for Automotive Research estimate the total cost of a new car will increase anywhere from $4,200 for domestically made vehicles with imported parts to $8,700 for models built outside the US. That's on top of an average sticker price of $48,699 in April, about $1,200 higher than last year."Prices are going up. We see it potentially just around the corner in May, there being a potential significant price increase across the board with some brands more than others," Boeckmann, whose family of dealerships includes a dozen different brands like Ford, Honda, Mazda, Volkswagen, and Volvo, said.New Mazda SUVs at the Port of Los Angeles.Mario Tama/Getty ImagesSome automakers have more vehicles in stock while others have far less inventory.According to data from Cox Automotive, Lexus and Toyota had the leanest inventory in the industry, with just 30 and 32 days' supply, respectively, at the end of March. At the other end of the spectrum, major brands like Nissan, Hyundai, and Ford all have between 90 and 100 days' supply."I'd look there," Moody said of the brands with greater available inventory.Now may also be a good time to explore the possibility of owning an EV, with industry inventory at an average of 93 days, according to March sales data from Cox Automotive. Still, even those who have seen inventories decline 26% since March of 2024.President Donald Trump displays an executive order he signed imposing tariffs on auto imports.MANDEL NGAN/AFP via Getty ImagesThe Trump administration's decision to levy a 25% tariff on imported automobiles and parts at the beginning of April triggered a litany of reactive measures by automakers.Ford, for example, instituted an employee discount for consumers on most of their models until June 2, while Nissan lowered the prices on two of their most popular SUVs, the Rogue and Pathfinder, by up to $1,900.There are other discounts out there, but you'll need to act fast."So I think for consumers out there, look and see if there are inventive programs in the category that you want, and if you are open to different brands," Edmunds' Caldwell said.It's a great time to trade in a used car, but not to buy oneWith new car prices on the rise, many consumers have turned to the used car market in search of a good deal.Unfortunately, now is not a good time if you're in search of a good used car deal.The used car market is fueled by the availability of two- to three-year-old cars coming off leases. Production delays caused by the pandemic and subsequent chip shortage limited the number of new cars leased in recent years, resulting in constrained used car inventory today."This will probably be the worst year for lease returns, because of the chip shortage three years ago," Edmunds analyst Caldwell told us.According to data from Cox Automotive, used car inventory shrank to just 39 days' supply at the end of March, down from 43 days in February. This was driven by tax refunds and the threat of looming tariffs. In fact, the same data set showed that used car sales increased by 181,000 units compared to March last year.Average used car prices have been relatively stable over the past year, hovering around the $25,000 mark, but increased by $180 between February and March.With used cars becoming more valuable, dealerships like those operated by Boeckmann's Galpin Motors have started offering more money for trade-ins, making new cars more affordable for consumers. This further enriches the value proposition of choosing a new car over a used one.Read the original article on Business Insider

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