How to find car deals in times of tariffs

We also have cautionary news — those conditions may not last forever.

Don’t panic. Instead, arm yourself with knowledge about the evolving car market.

We break it down for you.

Prices haven’t risen much yet

The White House imposed 25% tariffs on new cars and the parts used to build them in early April, making it sound like new car prices would jump by 25%.

In June, the average new car sold for a price just 3.1% higher than a year ago.

Various reasons account for the muted effect.

Dealerships typically keep at least two months’ worth of new cars in stock at any given time. A tariff charged at ports won’t reach your local sales lot for months.

Automakers can spread the effect of the tariffs. They might significantly boost prices on their most expensive models to raise funds to import the cheapest ones. They know a shopper buying a $25,000 car imported from South Korea can’t absorb a substantial price increase, but one buying a $60,00 pickup built in Indiana can pay a little more. So, they raise one price to avoid raising another.

Automakers and their dealers have simply chosen to make less money off each sale while tariffs are new.

Kelley Blue Book researchers separately track the prices manufacturers ask for new cars and the prices buyers pay for them. Manufacturer’s Suggested Retail Prices have climbed more than final transaction prices, indicating that factories and dealers are discounting as deeply as possible.

Some dealerships are still making impressive deals

It’s getting slightly easier to find a discount on a new car. According to Cox Automotive data, discounts amounted to 6.9% of the average sale price last month, up 0.1% from May.

Some automakers are using the tariffs as an opportunity to grow their market shares at a loss. It’s a gamble, but some act like getting more of their cars on the road will pay off in the long run, even if it costs them in the short run.

Ford offered “employee pricing” to everyone when the tariffs were first announced. The automaker later pulled that offer back, replacing it with 0% financing for many buyers. In the second quarter, Ford saw its sales increase 14.2% but reported its first quarterly loss in two years.

Ford is far from alone. Many automakers have 0% offers now. The Federal Reserve Board held interest rates steady at its most recent meeting, but Cox Automotive reports lenders have begun lowering rates for buyers with good credit without a change in the benchmark rate.

It might not last

Automakers can’t run at a loss forever.

The White House has negotiated trade deals with several countries in recent weeks, dropping some tariff rates. Many British cars now have a 10% tariff, while Japanese, German and South Korean cars all have a 15% tariff.

Automakers tell us they interpret the deals as a sign that tariffs are here to stay. Many may not feel they can continue to take losses for much longer.

Cox Automotive Executive Analyst Erin Keating says the discounts “won’t last. The Cox Automotive team still expects consumers to see retail prices climb by 4—8% by year-end, with price increases accelerating as 2026 model-year vehicles hit the market.”

The fundamentals still apply

Dramatic headlines don’t mean the fundamentals of car shopping have changed.

We always urge shoppers not to make an expensive decision in a hurry or a multiyear commitment to debt based on a shifting daily news cycle.

Our advice for car shoppers:

And pay close attention to supply and demand. Today’s cars often have dramatically better quality than a generation ago. The average vehicle on American roads is now almost 13 years old, partly because most new cars are built with lasting quality. Brands you may not have tried before are often worth another look.

If the first car you consider is in short supply, look to easier-to-find rivals that may be overstocked, so dealers will consider lower offers.

Sean Tucker reports for Kelley Blue Book from Washington, D.C., where he has covered the auto and energy industries for a quarter-century.

The Steering Column is a weekly consumer auto column from Cox Automotive. Cox Automotive and The Atlanta Journal-Constitution are owned by parent company, Atlanta-based Cox Enterprises.