The USEFCU Blog

If you’ve been considering buying a new or used car, now might be the time to act. Tariffs on imported cars and auto parts could cause vehicle prices to rise, making financing a car more expensive in the near future. But what exactly are tariffs, and how do they impact the price you pay at the dealership? Let’s break it down.

What Are Tariffs, and Why Do They Matter?

Tariffs are taxes placed on imported goods by the U.S. government. When tariffs are added to imported cars or auto parts, manufacturers and dealerships often pass these extra costs on to consumers. This means higher prices for both new and used cars—even those made in the U.S., since many American-made cars rely on imported parts.

How Tariffs Affect Car Prices

1. Higher Prices on New Cars – If automakers have to pay more for imported parts, they will likely increase the sticker prices of their vehicles to cover the cost.
2. More Expensive Used Cars – When new cars get more expensive, more people turn to the used car market, driving up demand—and prices—for pre-owned vehicles.
3. Increased Loan Amounts – If car prices rise, you may need to borrow more money to finance your vehicle, which could mean higher monthly payments.

Why Buying Now Could Save You Money

If tariffs cause car prices to rise, waiting too long could cost you. Here’s why acting sooner rather than later might be a smart financial move:

• Lock in lower prices – Buying now means you avoid potential price hikes caused by tariffs.
• Take advantage of current financing rates – Interest rates and loan terms can fluctuate, and getting a car loan now could save you money in the long run.
• More vehicle options – As prices rise, certain cars may become less affordable or harder to find.

Need Financing? We’ve Got You Covered!

At USE Federal Credit Union, we’re here to help our members navigate these potential changes and secure affordable auto financing. Whether you’re looking for a new or used car, our competitive auto loan rates and personalized service make financing easy.

If you’re considering a car purchase, don’t wait until prices climb. Visit USE Federal Credit Union today to explore your financing options and get pre-approved!