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3 minute read
It's time to make a plan...
Big changes are coming to the auto industry, and if you’re not planning ahead, you could find yourself paying a hefty price—literally. With new tariffs on vehicles imported from Canada and Mexico, car prices are expected to skyrocket, some by as much as $12,000. This isn’t speculation; it’s reality. Now is the time to be proactive, not reactive, when it comes to buying your next vehicle.
What’s Happening?
As of March 4, 2025, the U.S. government is slapping a 25% tariff on vehicles imported from Canada and Mexico. That’s a major problem for car buyers because even many vehicles assembled in the U.S. rely on parts from these neighboring countries. This means prices aren’t just going up on imports—they’re going up across the board.
How Much More Will You Pay?
Experts predict that:
- The average new car price could jump by $3,000 or more.
- Large SUVs could see price hikes of up to $9,000.
- Pickup trucks could increase by $8,000.
- EVs, which rely on international supply chains, could take a serious hit as well.
If you’ve been putting off buying a new car, you might want to reconsider. These price jumps aren’t just a temporary blip—they could have a lasting impact on affordability.
Why Having a Car Buying Plan Matters
Car buying often happens out of necessity. Maybe your car breaks down, you get into an accident, or something unexpected forces you to replace your vehicle. If there’s no plan in place, you could find yourself scrambling to make a decision under pressure. Insurance companies usually give you about seven days to figure things out if they total your car—imagine the stress of having to rush into a major financial decision like that.
Just like investing money for the future, planning ahead for a car purchase can set you up for success. When people buy a house, they plan, save for a down payment, and finance it strategically. But when it comes to cars, most people don’t think that far ahead. Here’s how you can change that:
Step 1: Know What Your Current Car is Worth
- Get a professional appraisal - You can call us to schedule one - (719) 528-8700.
- Avoid guessing—an online estimate isn’t the same as a real offer.
- If you own your car outright, you can use the value for a down payment.
- If you still have a loan, compare your car’s value to what you owe.
Step 2: Understand Your Financial Position
- Check how much you owe on your current car.
- Compare that to your car’s value to see if you have equity.
- If your loan balance is higher than your car’s worth, that’s key info for your plan.
Step 3: Make a List of Must-Haves for Your Next Car
- What features do you need? Backup camera, large touchscreen, heated seats?
- Has your lifestyle changed since you bought your last car? More road trips? More towing?
- Knowing what you need makes decision-making easier when the time comes.
Step 4: Check Out Current Vehicle Costs
- Go online and build a few models to see real-world pricing.
- Call an auto broker (like me!) to get an accurate market snapshot.
- Check potential financing or leasing options to see what fits your budget.
Step 5: Assess Your Current Car’s Reliability
- Talk to your mechanic about upcoming repairs.
- Find out the cost of major potential repairs like a transmission or engine.
- Compare those costs to your savings and decide if keeping your car makes sense.
Step 6: Start Saving Now
- If a new car will cost $50,000, start putting money aside now.
- If you’re financing, start “paying” a car payment to yourself each month.
- This builds financial muscle and makes the transition to a new car smoother.
Step 7: Consider Acting While Your Car Still Has Value
- If your car is aging but still holds value, trading it in before major depreciation could be smart.
- You could use that value as a down payment or even qualify for a low-payment lease.
- Having a plan gives you options instead of forcing a rushed decision.
Be Ahead of the Curve, Not Behind It
The reality is this: if you wait to buy a vehicle, you could end up paying significantly more. The best move right now? Plan ahead. That’s where I come in. I help my clients cut through the noise, avoid the stress, and make smart car-buying decisions before prices climb out of reach.
Let’s get ahead of the curve—before it costs you thousands. Ready to talk strategy? Let’s connect.
