THE window for a great car deal is closing fast – and drivers on the hunt for a bargain will need to be in the know.
Car dealers up and down the country are responding to tariffs, with their approach signposted in commercials, ads, and websites.
But some car dealerships are beginning to promote tariff-free cars as a sales tactic to stand out in the competitive car sales landscape.
President Trump hit auto imports with 25% tariffs—which started on April 3—and analysts believe prices will jump by as much as $3,000 for cheaper cars and up to $20,000 for luxury models.
Naturally, dealers know even the smallest price hike is bad news for sales – with many keen to take some of the heat off.
Now, consumers are seeing things like the banner on the website of Mercedes-Benz of Calabasas in Southern California, which says: “No Added Tariffs. 100% Tariff-Free.”
This comes as Mercedes has said it will cover the costs of tariffs for model year 2025 cars.
The German brand also likely has enough inventory that was imported before the tariffs – meaning they’ll be able to keep that promise.
Another luxury marque with a similar line is Infiniti of Englewood in New Jersey, which posted on its site, “Invest in an Infiniti without new tariffs.”
Furthermore, Porsche of Tyson’s Corner in the Virginia suburbs of Washington, D.C., offers buyers the chance to “select from an array of new vehicles brought into the US before April 3rd.”
Speaking to Yahoo Finance, Tom Maoli, owner of Celebrity Motor Car Company, a dealership that operates Lexus, BMW, and Ford showrooms, said: “I think it is a good sales tactic, but keep in mind right now they are tariff-free cars…because the tariff has not started yet, and cars that are being produced will have tariffs, so I’m not so sure how they sustain that marketing.”
But Maoli, a Republican who worked on Trump’s first-term transition team, says his stores won’t be using the tariff-free tactic.
He added: “This is a very short-term marketing plan.”
He says that when inventory runs out, brands like Mercedes are going to have no choice but to pass the added costs on to the consumer.
Mercedes, though, believes the plan is a good one.
Speaking at the New York Auto Show, Mercedes US chief marketing officer Melody Lee said: “No other OEM has made that commitment to protect an entire model year—I can’t tell you how much that means in terms of what we’ll absorb in cost, but it’s a lot, right?
“But we’re doing that because we know our dealers and our customers need some reassurance of what’s going on.”
Lee added that model year 2026 price protection is still something that we’re discussing.
Infiniti also said the company is going to keep prices steady in the US.
Infiniti Americas vice president Tiago Castro said to Yahoo Finance: “We announced to the whole [Infiniti] network last Friday that we will keep MSRPs flat, tariff-free, if you will, until June 2.
“That doesn’t mean that on June 3, we’re going to change—all we wanted to confirm is that, as we’re studying this and trying to navigate and identify the best way to move forward, we don’t want to make any drastic changes that will impact clients or retailers.”
What to do if a dealership closes
If you recently bought a car or motorcycle from a dealership that suddently closed, you may feel anxious about how that affects you.
When you finance a new car or motorcycle or need warranty repairs done at an authorized dealership, a sudden closure can make some people think they’re out of options or worry their car will be repossessed.
If you’re in a situation that sounds like that, here are a few things you can do after receiving an official notice:
Notify the bank hosting your loan of the closure to make them aware. If the financing is done through the dealership itself, it’s important to contact the dealership or your salesperson to ask how to keep up your payments. Many dealerships will send the lien (the title and registration that will only be released to the buyer after the debt is paid) to a financial institution to keep. If the dealership cannot be contacted through traditional means, most states allow drivers to apply for the title and registration through the DMV. If you leased a car from a dealership that went out of business, instructions should be sent as to which dealership to bring your vehicle to when the lease expires. If not, contact the dealership. A factory warranty through the manufacturer will be honored at any other authorized dealership. However, an extended warranty through the dealership may not be honored at other repair shops, so it’s important to seek that information from the dealership as soon as possible.Source: Consumer Law Group
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