Whippany, New Jersey – Tom Maoli, the owner of a new used automotive dealer in New Jersey, says that drivers could see A big leap in prices If President Trump follows On his threat To impose 25% prices on Mexico And Canada.
“Each car that comes out of any dealer will increase prices,” said Maoli. “Pieces come from all over the world.”
The average price of a new passenger vehicle in the United States in December was $ 49,740, according to Kelly Blue Blook.
Maoli speculates that if price Are implemented, the prices of new cars could go from 5% to “up to 15%”.
With higher prices for new carsThe prices of used vehicles would also increase due to the increase in demand.
Some of the largest car brands, including Ford, General Motors and Stellantis, have plants in Mexico and Canada.
And according to Maoli, more than half of the parts – such as drums and motor components – for cars assembled in production factories in the United States come elsewhere and could also be struck by prices, in particular with the president offering also new prices on China.
“I think the manufacturer has no choice but to transmit this to the consumer because they must generate profits,” said Maoli.
How fast could consumers see prices increase?
“Everything that has not yet been shipped – or which is to the platform which is shipped in these ports – which ends up going to a vehicle to be manufactured,” said Maoli. “It’s immediate.”
But that’s not all. Repair costs could also increase. Everything, from air filters to washer liquid, is imported from abroad.
“These brake pads come from China,” said Maoli. “Some come from Mexico. These brake pads could increase up to 20%, which ultimately has an impact on the cost for the consumer when they do. »»
This means that even if drivers choose to keep their current vehicle instead of buying a new one, they could probably be assigned.
“Because if you don’t buy, you repair,” said Maoli. “You have to keep the car on the road. You cannot stop transport. You have to bring your family to work and to school.
Prices could encourage manufacturers to provide jobs to the United States, but it is not something that car manufacturers can do overnight. This could take up to 18 to 24 months to develop these plants, said Maoli. Most in the automotive industry, however, hope that these threats are only a negotiation tactic.
