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New-vehicle affordability declined in April to the worst level yet this year as the bite of higher prices and lower incentives reversed an improving trend.
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Ever since President Trump announced auto tariffs 47 days ago, the cost of new cars has been steadily climbing.
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Commentary/Analysis: The Democratic Party has challenged the industry by pushing an aggressive green agenda while the Trump administration is now forcing tariffs – a one-two punch the industry hardly deserves.
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As April opened, the total supply of new vehicles on dealer lots across the U.S. was down 10%+ and counting with days' supply down to 10.
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New bills, federal trade actions, and evolving EV incentives drive NAFA’s focus on compliance flexibility, data rights, and cost stability for public and commercial fleets.
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The tariff announcements have spurred activity that suggests the wholesale market will see a sizeable increase in the Manheim Index in April.
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Commentary/Analysis: Look for likely higher prices across the broader economy, with the auto market heading into uncharted territory — a rough road indeed.
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CAR 2025: A JD Power expert ties together the leading automotive sales and supply trends among vehicle buyers facing the disruptions of impending tariffs this month.
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Pricing is unlikely to jump in relation to affected models. Instead, the pain will likely be spread across OEM portfolios — and the entire industry.
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Analysis: Experts from Cox Automotive say in the near term, after a short surge in buying, vehicle sales will likely fall amid price increases, and OEMs may eliminate some models if tariffs persist.
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