Navigating Automotive Tariffs
Like any industry, the automotive industry can be affected by changes in international trade policy like tariffs. These changes can impact the cost of both new and pre-owned vehicles, as well as service maintenance and repairs. At Tameron Kia Westbank, we’re here to help you through the entire process of discovering your next Kia, so we’ve written this guide to the potential impacts of tariffs and how they can affect your buying decision.
What is a Tariff?
To put it simply, a tariff is a tax imposed on imported goods. For automobiles, this means that tariffs can apply to imported vehicles, as well as imported parts for vehicles that are assembled in the United States. Many New Orleans-area drivers are concerned about potential price increases due to discussions about potential tariffs, but for Kia drivers, there is less need for concern.
Kia builds several of its most popular vehicles right here in the USA, meaning auto import tariffs won’t apply. And, at least for now, the automaker is committed to not raising prices. Of course, this is an evolving situation, but our Harvey team is here to help you figure it out—so contact us with any tariff questions you have.
How Can Tariffs Impact My Kia Purchase?
There are many potential impacts of import tariffs, but there are a few that will impact the average Timberlane car buyer more than the others:
- Price increases: Tariffs can raise the cost of manufacturing new vehicles, which are generally passed down to the consumer. This means higher automotive prices for both new and pre-owned vehicles, as well as leasing.
- Inventory fluctuations: In some cases, tariffs can disrupt manufacturing supply chains. This could mean a limited availability of some models or parts, which can also raise prices.
- Pre-owned market impact: Higher new car prices can increase demand for used models, which can increase costs there as well as in used vehicle parts.
- Service costs: Tariffs on imported parts and equipment can increase vehicle service and repair expenses.
How Can I Minimize the Impact of Tariffs?
At Tameron Kia Westbank, we recommend acting now to procure your new automobile to lock-in a price, as well as:
- Avoid inventory shortages: By buying now, you can avoid potential inventory shortages later on.
- Take advantage of current offers: Many OEMs are offering pre-tariff promotion deals or delaying price increases, meaning that now is the right time to buy.
- Perform service now: You should also take care of your vehicle’s service needs now to avoid potential increases in those costs.
Tameron Kia Westbank is Committed to You
Our team is dedicated to helping drivers in the Marrero area find the right car for them, as well as servicing and maintaining their investment for the future. We’re here to answer all your questions and show you around our expansive inventory of new Kia models and pre-owned vehicles! Explore our inventory online or call us at 504-264-6132 to learn more, and schedule your test drive in Harvey today.
