Compared to prices from March, In April, the average price paid by consumers after taking into account discounts and promotion increased by 2.5 percent.. This means that the increase in prices has accelerated. As Kelley Blue Book from Cox Automotive showed The April growth was more than twice as high as a typical price jump (amounting to 1.1 percent) recorded in the same period in recent years.
Reuters reminds that over the past decade, the only case, when an equally rapid increase in car prices has been recorded, took place in April 2020, when during closures of factories related to pandemic prices increased by 2.7 percent.
Adaptation to new conditions
Car manufacturers adapt to 25 percent. American tariffs for importing vehicles from many countries, including the main trade partners of Mexico and Canada.
However, so far few manufacturers have decided to raise retail prices. Some, like Hyundai and the manufacturer of Jeeps Stellantis, even introduced special offers to calm the buyers and maintain sales. Ford also took such actions, although not in all cases. Some Ford’s electric models produced in Mexico, including SUV-A Mustang Mach-E, Pickupa Maverick and Bronco Sportthey will cost Even $ 2,000 more.
Used car market
According to the MANHEIM used vehicle value index, CX, CUsed cars increased in April by 4.9 percent. Compared to the previous year and 2.7 percent compared to March.
In the opinion of some manufacturers, the increases could be much higher, but promotions allowed to maintain prices at a stable level.
The pressure will grow
As experts assess Dealers’ reserves melt, and a decrease in the number of vehicles in dealership parking can indicate that the upcoming months pressure on price increases will be increasing. Reuters quotes the opinion of the main economist Cox. Jonathan Smoke noticed that there are less than 2.6 million vehicles in the showrooms, and the supply may decrease even more with the increase in sales and the reduction of supplies by importers.
Paul Zimmermann, a partner and owner of the Matick Automotive Group of Michigan, which includes GM and Toyota salons, also drew attention to the decrease in the reserves of vehicle vehicle in some regions.
COX Automotive previously estimated that new vehicles directly covered by a 25 % duty may cost from 10 to 15 percent. more. However, the prices of vehicles not covered with full customs can increase by 5 percent.
