Key Takeaways
- A new analysis by Deutsche Bank suggests that Americans have been “panic buying” cars to get ahead of tariffs.
- U.S. auto sales in March came in above the bank’s estimates and February figures, its analysts wrote.
- Industry experts expect new and used car prices to rise in the coming months. Meanwhile, some automakers are unveiling promotions to sustain demand.
The Trump tariffs may already be changing Americans’ car-buying plans.
US auto sales for March came in higher than Deutsche Bank analysts expected, the bank said in a Friday report, rising from February levels. That might indicate “panic buying” as Americans sought to get ahead of the tariffs on foreign-made vehicles that took effect last week.
The analysts said they had expected higher numbers due to a pre-tariff pull-forward. But “this impact appears far greater than we anticipated,” the report read. Deutsche Bank expected auto sales to be strong through June, then weaken in the back half of the year.
Auto-industry experts have warned that President Donald Trump’s tariffs were likely to lift auto prices. Anderson Economic Group last week estimated price increases for a range of models and makers measured in the thousands of dollars and rising into five figures for luxury cars. Secondhand autos are also expected to see higher demand.
“If you are in the market for a new car and you find one you like, my advice is to buy it right away,” Anderson CEO Patrick Anderson said. “If you have a used car you rely upon, my advice is to make sure it is well maintained as you are likely to use it for a while longer than you had earlier planned.”
Drivers may also hold onto their cars for longer than they might’ve otherwise, experts have said, limiting the supply of used vehicles.
Some automakers are seeking to sustain demand with promotions. Ford (F) on Thursday said it would extend employee pricing to “everyone” and offer deals on home charging. Jeep maker Stellantis (STLA) is making a similar offer, a spokeswoman told Investopedia, including a choice of employee pricing or cash incentives.
“We understand that these are uncertain times for many Americans,” Ford said on its website.
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