New car sales get surprising boost, for now, as consumers fear tariffs and higher prices

Core Insights - U.S. new car sales are experiencing an unexpected boost heading into Q4, driven by regulatory uncertainties and strong consumer demand [1][2][3] - Cox Automotive has raised its 2025 U.S. new vehicle sales forecast to 16.1 million, up from a previous estimate of 15.6-15.7 million, indicating a positive trend in the automotive market [1][2] - Sales are projected to increase by 4.6% compared to the same period last year, as consumers are motivated to purchase vehicles sooner due to fears of rising prices [2][3] Industry Analysis - The automotive market has benefited from a strong stock market and changing policies, which have encouraged consumers to buy vehicles ahead of potential price increases [3] - The current sales pace is at 16.3 million vehicles, but a slowdown is anticipated in Q4 and into the following year [3]