By Josh Jacotte
Memorial Day weekend was one of the busiest times for car dealers. Many car shoppers have decided to pull the trigger for its long-standing purchases due to major sales promotions and the iconic summer start. But things are a little different this year.
There are tariffs on offshore vehicles and components, which will stop the confusion. Shoppers are rightly wondering. Will the price rise? Is the transaction authentic? Should I buy now or wait?
Here is some good news. With a little strategy and timing, you can win this anniversary weekend and avoid potential price hikes in the coming months. Here are five tips from Edmunds experts.
Prioritize the vehicles assembled by the US
If you are trying to isolate yourself from the effects of tariffs, start near your home. Customs duties have the most impact on vehicles not assembled in the US. While many of these vehicles use components from overseas, the final meeting in the US means that they are not subject to 25% import duties.
How do you know which vehicles are assembled in the US? First, you can consider vehicles from domestic automakers such as Ford, General Motors and Tesla. However, you need to be careful. Not all domestic branded vehicles are assembled in the US at the same time, and many foreign automakers, such as BMW, Honda and Toyota, will build some of the vehicles here.
You’ll want to check out the window stickers of your vehicle that’s of interest. Here is where the final assembly occurred and the proportion of our foreign parts. Please note that despite the car being assembled in the US, it will not escape customs duties on foreign-made parts.
Find stock before customs duties
Many dealers still have vehicles imported or assembled before the April 2nd entry into force. Most dealers have stock for around 60 days. That means at least some of the cars in this anniversary weekend lot are not yet affected by the new prices.
So, how do you find them? Simple: You ask.
Dealers have an inventory management system that shows exactly when each vehicle arrives. If you are focusing on a particular model, please request that you view vehicles that have landed by early April. This approach will not work forever – its inventory will drop in midsummer – but for now it is one of the clever ways to shop.
Explore anniversary incentives and promotions
A major holiday means a major promotion, and this anniversary is no exception. For example, Ford is offering employee pricing for all customers until July 7th. This is essentially an aggressive discount that removes dealer markup. This could mean thousands of savings on popular models such as the F-150 and Explorer.
Other car manufacturers follow suit. Expect to see this weekend an extended warranty advertised with APR offers, cashback bonuses, lease specials and extended warranty.
But here’s the trick. These offers can vary widely from region to region and dealer, so first compare comparison shops online. Automaker websites often have tools to search for incentives by postal code.
Consider purchasing to use
Used cars are not subject to customs duties. Therefore, if you want to avoid tariff-induced sticker shocks, the second-hand market may be your safest bet. Used car supply has been steadily increasing since the pandemic. That means you’re more likely to find a vehicle that’s lightly used with better choices, more competitive pricing, and lower fuel economy.
Look for certified second-hand models that come with factory warranty. They often have a good balance between peace of mind and cost reduction. Also, because interest rates are still high, second-hand car principals can significantly reduce monthly payments by raising funds.
Be flexible and move quickly
Finally, flexibility is your friend as the industry is fluid. That may mean solving the color of the second choice, choosing a different trim level, or choosing a configuration in stock instead of ordering a custom build. In return, you will earn a better price profit.
And if you’ve been to the fence about buying? Please don’t wait long. Automakers and analysts agree: If tariffs continue, prices could rise later this summer.
Edmunds says
Between factory incentives, pre-duty inventory, options built in the US, and growth in the used car market, there are many ways to save this anniversary. Please prepare and let us know.
This story was provided to the Associated Press by the car website Edmunds. Josh Jacotte is a contributor to Edmunds.
