Should You Buy a New Car Now or Wait? Here's What You Need to Know

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The car market is getting pretty complicated these days, with potential tariffs threatening to shake things up big time. We're looking at possible 25% tariffs on imported cars and parts, which could turn that $40,000 car you've been eyeing into a $50,000 investment. And here's the kicker - even American-made cars aren't safe from these price hikes since they rely heavily on imported parts like steel, electronics, and sometimes even engines.

Car manufacturers aren't sitting around waiting for these tariffs to hit - they're already thinking about raising prices gradually to soften the blow. This creates a bit of a "now or never" situation for buyers. Think of it like a pre-hurricane shopping rush at the grocery store. Not only might prices go up, but you could also end up with fewer options to choose from as people rush to buy before the increases kick in.

The money side of things is worth thinking about too. Right now, interest rates are pretty reasonable, but if car prices suddenly jump because of tariffs, lenders might get nervous and jack up their rates. For example, financing a $40,000 car for five years at 4% means paying about $4,600 in interest. But bump that up to a $50,000 car at 5% interest, and you're looking at over $6,400 in interest - that's a pretty big difference in your monthly payments.

The traditional end-of-year sales and sweet deals might not be as juicy this time around next year. Those manufacturer incentives and cash-back offers typically depend on stable production costs, and tariffs could mess with that whole system. Plus, there's no telling how long this uncertainty might last - it could be years before things settle down, and by then, that specific model you want might be harder to find or way more expensive.

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I'm excited to announce that I will be creating a separate newsletter with more content. Recently, I deleted almost half of my email leads, and the new newsletter will be separate. More details are coming soon. Ask for Rico at 910.257.3017 for all your vehicle buying needs.