The US vehicle market is experiencing a surge in sales as consumers rush to buy cars and trucks ahead of potential price increases due to tariffs. The days’ supply of new vehicles has dropped from 91 days at the beginning of March to 70 days this month, according to Cox Automotive.
Consumers are trying to get ahead of tariffs on imports by purchasing vehicles now, resulting in a 22% increase in new vehicle sales compared to last year’s seasonally adjusted pace. The used vehicle market is also seeing an uptick, with sales up 7% this year compared to 2024.
However, the surge in sales is causing concern among automakers and industry analysts. The higher costs for production, parts, and other factors are expected to result in lower sales due to upward of 2 million fewer vehicles sold annually in the US and Canada.
Automakers like Ford and Chrysler are taking advantage of this trend by offering “employee pricing” deals to customers. However, these discounts come at a cost, with dealers experiencing reduced gross profits.
The surge in sales may be short-lived, as automakers and suppliers prepare for potential price increases due to tariffs. The industry is bracing for higher costs and associated price hikes, which could lead to lower sales in the long run.
Source: https://www.cnbc.com/2025/04/16/us-vehicle-supply-falls-tariff-fear-buying.html