Auto dealers report brisk business before tariffs bring higher prices
Concerns over tariffs driving auto sales
Ford announced big tariffs are pushing prices higher on the models that the automakers build in Mexico. FOX 26's Tom Zizka says that headline and growing concerns about tariff prices are keeping auto dealers busy.
HOUSTON - Auto dealers typically keep two to three months worth of inventory on hand, which means the vehicles on lots right now got here before tariffs tacked-on any extra cost.
While the specifics of what gets tariffed and what doesn't gets more complicated by the day, dealers say consumers are not waiting to find out.
‘We’re seeing a lot of folks rush in’
What they're saying:
"We're seeing a lot of activity on the showroom floor," says Bill Denton, President and COO of the Allen Samuels Auto Group, "We're seeing a lot of folks rush in, take advantage of what's on the ground; take advantage of the rebates."
"Once this inventory's depleted, I think you're going to see some changes to the price and to the deals," says Houston Auto Dealers Association chair, Steven Wolf, "My advice to anyone thinking about buying a car: If you're thinking about buying a car, you need to change that thought to action, because it's going to cost more down the road."
When will prices rise?
What we don't know:
Observers expect automakers may try to hold prices steady for 60 to 90 days, to see if there's any improvement in the tariff-situation, but there is no clear word on when, or if, prices may rise. A week ago, Ford announced tarrif-inspired price increases on three models it makes in Mexico.
The Source: The information in this article comes from the Houston Auto Dealers Association, The Wall Street Journal and interviews.