Auto sales are on a 'roller coaster ride' as tariffs are expected to increase prices

Core Insights - Prices of new and used vehicles in the U.S. are expected to significantly increase this year due to President Trump's 25% auto tariffs [1][2] - The automotive industry is responding to these tariffs with various strategies, including temporary pricing deals and halting shipments [5][6] Price Increases - Cox Automotive estimates a $6,000 increase for imported vehicles and a $3,600 increase for U.S.-assembled vehicles due to the tariffs, in addition to $300 to $500 increases from prior tariffs on steel and aluminum [6] - Wholesale prices of used vehicles are projected to rise between 2.1% and 2.8% by the end of the year, up from a previous estimate of 1.4% [8] Market Dynamics - The automotive market is described as volatile, with demand fluctuating based on regulatory changes and economic uncertainty [4][12] - Automakers are expected to cut production and some have ceased imports, but these actions are not anticipated to be as drastic as during the early 2020s [13] Consumer Impact - Changes in new vehicle prices and production are expected to affect the used car market, which is crucial for most American consumers [7] - The average listing price of a used vehicle was approximately $25,000 as of mid-March, ahead of anticipated sales increases [9] Future Expectations - The automotive industry anticipates volatility in pricing throughout the year, with the week following the confirmation of tariffs potentially marking the peak in sales [10] - The increase in used vehicle pricing is expected to be less dramatic than during the pandemic, which saw unprecedented price hikes due to high demand and low availability [11][14]