Increased tariffs have made many Americans shy about making big purchases — such as a new car — afraid they may become unaffordable.
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While tariffs will undoubtedly impact the cost of new cars, particularly those made overseas or that include components made outside of the U.S., it doesn’t mean all hope is lost for finding a deal.
Car experts explained how to save on a new car this summer, even if tariffs drive prices higher.
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Know When To Purchase
Regardless of tariffs, there are prime opportunities to buy a new vehicle, according to Tony Burns, auto repair expert and ASE (Automotive Service Excellence) master certified technician of Lakeview Automotive. He said the last two days of the month, holiday weekends, and the change-over to the new model year in August are good starters.
“Sales managers still have volume bonuses tied to those dates, so they’ll trade margin for a unit sold,” he explained.
The holidays when dealerships are most likely to offer the biggest discounts include Memorial Day, Independence Day and Labor Day, according to Patrick Peterson, auto expert and team lead at Goodcar.com
“If you’re flexible, waiting for these windows can lead to real savings even in a high-priced market,” he said.
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Take These Steps in Advance
Before you even step foot in a dealership, start by checking your credit score and getting pre-approved through a credit union or bank, Peterson recommended. “This helps you compare rates and avoid overpaying through dealer financing,” he said.
Try These Financing Tactics
With a pre-approval in hand, Burns said you can negotiate longer terms at a better rate. “If the captive lender is dangling 0.9 % on a 36-month term, grab it and add a couple thousand extra to your down payment; it saves more than stretching to 72 months at a higher rate.”
Additionally, he urged buyers to negotiate “the out-the-door price” before you talk financing.
Manufacturer Loan Offers and Promotions
Another tip is to look for special loan offers from manufacturers, such as low-interest promotions, loyalty or conquest bonuses (if you switch brands), and military or student discounts, Peterson said.
“Some dealer incentives aren’t publicly advertised, so it’s always smart to ask directly if there are any current offers based on your situation or ZIP code,” he noted. “These extras can add up to thousands in savings.”
If you receive a rebate, consider using it to reduce the loan balance instead of lowering your monthly payment, Peterson recommended. “It will save more in interest over time.”
Watch for These Red Flags
For every deal, there’s a dud. Dealerships are notorious for clever adjustments and upsells that wind up costing you more money, Burns warned. Therefore, watch for several red flags like these, he said:
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Market adjustment stickers. These often add thousands over manufacturer’s suggest retail price (MSRP) with no added value.
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Forced add-ons. Decline VIN etching, nitrogen tires, paint sealant and so on, unless you actually want them.
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High document fees. Anything north of $400 in most states is padding.
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Extra-long loan periods. If the finance manager pushes an 84-month loan to lower your payment, stop. Cars rarely last that long without expensive repairs.
Shop Domestic Cars
Another way to save on costs is to buy vehicles that are built in the U.S., Peterson said. These models are less affected by tariffs, and usually come with fewer shipping delays or price markups.
Good examples include the Ford F-150, Honda CR-V, Toyota Camry, Chevrolet Silverado and all Tesla models. “These vehicles are made mostly with local parts, which helps keep their prices more stable, even during supply chain disruptions or tariff changes.”
Be Careful When Looking at Used Cars
If you think the best way to save is to get a used car, be warned, Peterson said, “Used car prices are already going up as more buyers shift away from new models due to higher costs.”
That said, certified pre-owned vehicles can still be a smart choice. They usually come with warranties and lower depreciation.
“However, it’s important to compare the full cost of a used vehicle, including repairs and loan terms, to make sure it offers better value than a new car with rebates.”
Seek Transparent Pricing
Lastly, always avoid dealerships that aren’t transparent with pricing, Peterson said.
“Be cautious if you’re being rushed into a deal, or if loan terms aren’t clearly explained,” he warned. “In a high-pressure market, clear and honest communication is essential.”
Tariffs might raise prices, but that doesn’t mean you’re out of luck. With smart timing and a few savvy moves, you can still land a great deal on your next car.
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Sources
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Tony Burns, Lakeview Automotive
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Patrick Peterson, Goodcar.com
This article originally appeared on GOBankingRates.com: 8 Ways To Save on a New Car This Summer, Even If Tariffs Drive Prices Up
