(Photo Credit: Koji Sasahara/AP/dapd)
As the trade war intensifies and president Donald Trump continues to hold firm on raising tariffs, many are feeling the pinch. If you’re looking for a new car though, your wallet could be dramatically impacted, as those higher taxes could raise the cost of a vehicle $7000.
Along with Trump’s other protectionist moves, the imposed duties threaten to undermine vibrant economic growth fueled in part by last year’s double-digit corporate tax cuts, according to The Washington Examiner. So far, Americans at the bottom of the income ladder will be hit the hardest as an increase in price will further stretch an already thin budget and some of the highest expenses like tires, have begun to cause financial pain.
Car buyers are also going to feel the effects of the tariffs, but some lawmakers aren’t sure it’s the right way to enact a change in China’s behavior. “Our focus should be building on the benefits of historic tax reform achievement earlier this Congress,” said Senator Orrin Hatch, the retiring Utah Republican who chairs the finance committee. “Our trade policy should strengthen our relationships with our allies while targeting China’s most harmful trade practices. Tariffs on autos and auto parts are not going to help us achieve any of these things.”
And automotive manufacturers don’t only have a tariff on the vehicles to worry about. They are grappling with higher prices for American steel and aluminum, Rick Schostek, the executive vice president of Honda North America, told senators. Adding duties to cars and car parts “will put American workers, consumers, communities and the economy at risk,” he said. “That’s what Honda has joined every automaker in the U.S.” in opposing them, he said. The truth is, all Americans should be opposing additional taxes, which amount to theft from the consumer. Does anyone remember when a catalyst for war began over a 3% tax on tea? Apparently not.
Car makers previously warned the Commerce Department during that the duties Trump has imposed would push up their supply costs, curb American exports and, ultimately, cost well-paying jobs that the president has promised to increase. “Import tariffs could lead to a smaller GM, a reduced presence at home and abroad,” and fewer, not more manufacturing positions, which has a U.S. payroll of 110,000.
“COULD” doesn’t mean it will rise that much.
Sensationalism
Buying a new vehicle is foolish anyway unless you just enjoy a shaft in your ass.
seriously. who the frick buys a brand new car..??
Idiots that don’t know how to fix things.
Also I only buy vehicles with manual
transmissions. Hard to buy these days.
Rellik, I drove a 5-speed small pickup for my work for many years until my left knee starting acting up in 2004 so I had to get away from the clutch. The manuals are definitely not as numerous on the roads as they once were. When I was 14, I had to learn to drive a standard first before I could learn to drive an automatic. I miss the old 3-on-the-tree. It was impossible to miss any gears on that setup.
How are you gonna buy a used car unless someone buys it new beforehand? Those comments are silly. I just bought a new truck and I plan on keeping it until it don’t run no more. So there won’t be anyone buying it used. I think I’m a pretty good negotiator and I’m well aware of sales tactics. FWIW, I think I got as good a deal a could be gotten and a great interest rate as well. 3k for a trade in, 6k of my own money down, what started at 40k came down to 28 cause of good negotiating. So fire away with your opinions but again, how will you buy used unless someone buys new first? They do not produce “used” vehicles.
By the way, 28k was with the tax included.
By the way, 28k with the tax included
Most people who buy used cars, do that because their credit is shit. And most everything else in their life is sit too and used including their girlfriends.
Yep, buy used wives too.
pretty sweeping statement, TSB…
first, if you’re ok financing (being in debt) $28K, then you’re ok with not OWNING your car. I pay cash for mine. I resent paying interest on an item thats worth less every day.
fact is, most people buy used cars because we understand the vast majority of you suckers who buy it new are happy take the immediate depreciation hit, trade it in a couple years with negative equity, rinse and repeat for the new shiny toy. Sort of like your ex wives I suppose.
There are some who buy new, and keep it until the wheels fall off to “get their moneys worth”. Personally, I fall in the middle: new enough to be nice, old enough to be reasonably priced. Our 2 dailies are between 3 and 5 years old.
By the way.. For those financing, It takes credit to get a used car loan too smart guy.
Interest rates for new cars what, like 3% plus rebates. Its like free money. And I pay it off in just a few years anyway. You can do this when you have outstanding credit like me. Sorry about your luck. lol
Marcus, AMEN to your comments. Buy for cash from a private owner, preferably an elderly person. Cars from those people are better cared for and better than anything you’ll find at ay used car lot. My income and credit history come up way too short for financing. You can get a decent vehicle between $2000-$7000. I know a few people who literally go broke struggling to pay the notes on their new, overpriced shit every month. I don’t go broke to pay for any kind of vehicle. I live within my means. I can only do what my circumstances allow me to do.
Panther, as long as you have the right kind of income and credit history, then go for it. Not everyone can go out and do what you just did. In my case, I don’t make enough to qualify for financing, so buying for cash from a private owner is the only option I have.
I wasn’t directing my comments at those who are not as financially capable as others, it’s those who say people who buy new are stupid. I raised 2 boys, one yet, for many years on my own. I couldn’t afford it either. But I’m married again, and have a much better paying job with actually less expenses. So why not buy a new vehicle? I work very hard, I think I earned it. Again, you can’t buy used unless someone bought it new in the first place
Panther, I didn’t mean any harm with my comments. I was only saying that people can only do what their circumstances allow them to do. And I know those circumstances will vary from one person to the next. But I have tried to buy from some dealers in the past only to get turned away numerous times so I’m thankful to have a company vehicle.
I buy Brand new cars, because I don’t buying other people’s problems. I buy them, pay them off quick and drive them for 10 to 12 year on average. And since I am excellent on the maintenance they last a long time and mileage is low, and when I sell as a one owner, I get premium dollars in exchange. I also like to buy New Guns, now used guns. Was it stolen or used in a crime or homicide? Will I later be blamed for some murder or theft of the gun? I also buy brand new condoms. Do you all like to buy used condoms? Then good for you and you deserve what you pay for. I like to buy New cars to drive, not fix. My time is valuable and I need dependency, not be wasting my time dumping good money after bad money to chase countless problems. My current SUV vehicle is a 2009, bought it brand new in 2009 and I only have 51,000 miles on it, and runs like a champ, and I top synthetic oil and change the oil about every 6 to 7 thousand miles. To each his own. BTW/ in 2009 I got to write off the entire sales tax 100% on the New vehicle I purchased which was about a $1,600 tax deduction.
TSB, spot on. I only buy new for the same reasons.
And to that, Mobil 1 is all I ever use in all my vehicles. Worth it. And add Lucas at each fillup.
Yep… And I will drive this vehicle as long as I like it. I also eventually trade in Girlfriends too, with too many miles on them, for a newer model. I like that new girlfriend fresh interior smell… ahhhhh..
Menzo, AMEN to that. I’ve ALWAYS bought one from a private owner for cash. I don’t even make enough money to qualify for car loans. Buy it and pay for it right there on the spot and be done with it. Only insurance I’ve ever had is liability because everything I’ve ever had was too old for full coverage. The limit on full coverage now is 15 years old. That’s how I’ve been able to prep to the extent I have and done it faster than most people could. No high-interest loans for me EVER. Dealers can kiss my ass, LOL.
If you actually have cash instead of a cashier’s check, I can tell you from experience that almost all sellers will take the cash. It shocks them usually. You mentally calculate a reasonable figure then cut $500. Offer that in cash. Sure they would prefer $500 more but the cash is worth it.
I’m a firm believer in being fair. In a small community, goodwill is gold. There is no need to insult the seller. In fact, if he or she is desperate, maybe YHWH wants you to pay them a little more? There is no valid reason to cheat people. That would be a sin.
If they do rise, it is the companies raising the costs out of greed and hiding behind this nonsense argument.
Anon:
Yes $7,000 is too much to pay for a new car. Back in the day, a Volkswagen cost that much new, and I thought it was way too much.
This is sensationalism. But the fact that prices overall are going up justifies Preppers and proves unequivocally that they were right to have prepared by stocking up on food and supplies. Think of all the money we saved. Think of all the people who laughed at our paranoid behavior. Who is starting to look crazy and foolish now. And it has barely begun.
If you aren’t prepping for higher prices in the near future, don’t expect the government to ride in on white horses to save you. You and your children will suffer for your failure to read the writing on the wall.
_
Of course the tariffs cause short term pain for some people. But in the long run, they will bring manufacturing back to the US and make the economy better.
Before the income tax, tariffs paid for our government.
We need to straighten out this mess that we have made.
Tax on vehicle based on weight alone, Build a simple car
For the masses like Dodge Omni, VW golf. Populate the
City with zip scooters, electric bikes and robotic Uber’s.
We have fleets of SUV,s and Pickup Trucks that can be
Rebuilt several times for way less money than a New one.
Car share from McDonalds and Walmart, offer a discount
For the driver, make businesses pay for customers they
Are the primary business centers in these towns.
Stan,
I own a VW golf TDI. It is NOT simple in anyway shape or form.
I’m fortunate in that I have a shop, air tools, internet in my shop, shop manuals and amazon.com, so I can fix and maintain it. It is the nastiest car to work on, you have to disassemble it to replace the simplest of things like one of two temperature sensors. Alternator took three hours because I don’t have a lift. In 40,000 more miles I have to replace a timing belt that will probably take me 8 hours and $200 worth of software to re-time the fuel injector pump.
This article has some truth to it. I work in construction and management just ordered all the materials needed for a current two year project. According to the purchasing agent, he said after October 1st the same shipment of goods would of cost an additional 30% in cost and when they bid the project they didn’t account for that. I support Trump and the American workforce, but things could unravel. Stay prepared.
Thanks for an “on the front lines report” about price increases. I just mentioned to my significant iother that I’m really surprised at the across the board increases in food.
This may sound cruel but lower income Americans are absolutely the last people who should have a car. Their obesity rates are outrageous and most could do with walking around A LOT more. Here in Europe, lower income people walk, ride a bike or take public transit. They do not shift their food stamp/EBT card fat asses into a car and drive places.
Lower income Americans wouldn’t need much healthcare if they walked more.
The hard numbers show that wealthy Americans deserve cars because they are on average in far better health because they eat right, excercise and take care of themselves.
A car should be something you earn by saving and succeeding in life, not a “right” for the lazy to get around.
FT, good points but the REAL reason low income walk, ride a bike, or use public transit is because they cannot afford cars. The government, depending on which EU nation they live in, take 60-90% of their annual income in taxes so cars in Europe are definitely for the wealthy. I don’t see how low income people in the EU survive.
Are you really that ignorant of America? Most of Europe’s population is crammed into small areas so it’s possible to walk to places. There’s also mass transit.
Where I live, it’s miles to anything, way too far to walk. Besides, if you bought groceries, how could you actually carry them home? Also, there’s no mass transit here at all. The buses were discontinued years ago when black people got enough money to afford taxis.
Archivist, great points. I live in Northern Virginia where there are loads of buses and train stations. Here’s the catch: they are great at taking you to work and back quickly and safely.
If you want to go somewhere else like say grocery shopping, be prepared to walk quite a ways to your destination (in many cases) if it goes near them at all. If you happen to live in an area with shops you want to patronize, be prepared for high prices both for your home and for the goods you need.
Then there is the “fun” weather we have that must be accounted for in moving about on foot and “fun” neighborhoods.
Oh, if you are a female going about alone, be prepared for anything even in so-called better neighborhoods since the low-rent set-asides (Section 8 program) brings “quality” people in to rent. Plus panhandlers and homeless camps in odd spots can add more sport to walking somewhere all alone.
One last item is the lack of sidewalks or even bike lanes/paths that are actually continuous so a person can avoid walking/riding on the side of the road or worse, in the ditch.
“The hard numbers show that wealthy Americans deserve cars because they are on average in far better health because they eat right, and exercise and take care of themselves”. This is the most preposterous rational I’ve ever heard. It makes more sense to say the wealthy have better means to insure better health. The poor population cannot afford to buy more expensive “good” food, they have to buy cheap in order to buy more to fill their bellies. The poor cannot afford health club memberships or personal trainers or workout equipment. The poor cannot afford doctors or medicine, so they do without. In my opinion you’re better off staying away from doctors as much as you can, that is if you know how to treat yourself. Frank where are you getting these “hard numbers”?
Frank, for once I totally agree with you.
Marcus, good one. Only a dumbass would buy a brand new car. I buy used everything except preps. Even my woman was like a used when I got her.
Donald laid out the new rules at the UN, you dictator wannabees better get with the program and get used to Donald’s foot up your asses.
HCKS.
HCKS, that used pussy is still good once you get past the used part, LOL.
Yep sloppy seconds, you can have it after I’m done.
HICKS, Your woman was used when you got her. Did you buy your trailer used too?
The bigger the foot, the better.
“Could”.
Almost anything “could” happen, but what happens rarely ends up being what was promoted -especially if it is a fear instilling “could”- as what “could” happen.
Mariachi, R&B, rapid acceleration from stops, swerve for the sport of it, play-chicken, street race, hit-and-run.
I have seen the same general driving style, progress from Tijuana, up through Orange County, and un-apologetically refuse to call this a universal civil right, under brown-washing.
You are not credit worthy, so get repo’ed in rush hour traffic, get in accidents on my street, are unable to follow directions or request help, in English.
I would be willing to call it an actual car, when it is built to outlive the warranty, again, and can be purchased without debt peonage.
Beaumont, the same things happen in my area and it’s ‘minorities’ that do those things. In TN, the state’s insurance law is NOT enforced equally among all drivers. If a WHITE driver is caught driving without coverage, he/she gets a citation but if the driver is a ‘minority’, they’re just let off with a verbal warning but still don’t get coverage. That’s called ‘selective enforcement’ and it’s wrong.
(I don’t know who is B from CA, but I am from Beaumont, California. We are two different posters.)
Mestizos get away without having registration, here, near the 60-10 interchange, a major right of way between Los Angeles and Las Vegas. If you are watchful, authorities are very clearly pacing you white people, near the corners of your vehicle and scanning your license plate.
Near Hemet, is a major right-of-way, connecting Mexico and Temecula-Murrietta, where the farms are reinforced, like border crossings.
http://www.policemag.com/channel/patrol/articles/2010/06/duty-dangers-booby-traps.aspx
The demographic, here, has almost completely changed, in the last 20yrs. Very noticeable, when school lets out. We pick up friends of family, in nearby cities, and most students look like thugs or skinheads, with very little in between.
We can very clearly see where they have been red lined into new developments and what few jobs we have, locally, yet have to hear about their great jobs numbers. I’m sorry; that’s not traditional nor conservative. Someone telling you that should get an F.
Same thing in Northern Virginia.
I’ve also noticed that in certain areas new crosswalks–including a stoplight–have been installed because people just cross the street any old way disregarding traffic, even mothers pushing strollers.
I have a minority friend who is forever telling me to just do certain things such as requesting help for a special thing but I haven’t the heart to tell her that a white person won’t get the same treatment.
y says, “requesting help for a special thing.”
Same here.
y says, “I’ve also noticed that in certain areas new crosswalks–including a stoplight–have been installed because people just cross the street any old way disregarding traffic, even mothers pushing strollers.”
When brown people drive, they will either run white pedestrians over, or give you that impression. I have long legs, am fit, and being pulled by dogs — not being fashionably slow, like them.
Property tax on anything you own in my opinion is just plain government theft. Once the government starts getting desperate at any level; federal, state, county, city, I believe they will promptly begin raising those taxes enormously to get our property. I’m telling them I will kill the ones that come for my home and then I will seek out and kill the ones responsible for the order.
That’s how it goes with personal property tax, too which is another reason I get cheap cars and use them forever.
That’s too dam bad. This is about the nation, not you or your industry. We can’t spend $500billion a year out to infinity and remain solvent. Stop crying and figure it out.
Ok Mac, we get it. You are against either Trump in general or at least the tariffs. Were you good with the ass screwing we have been taking trade wise from China for such a long time?
Where thousands of unsold vehicles sit —
https://www.pinterest.com/pin/366128644683597039/
In a free market meritocracy, they would not be worth as much.
Think of materials and, in the case of automation, the cost of unskilled labor. These are like toys, not works of art, in most cases.
Some of the frames will not stand up to a hydraulic lift.
Accepting that a price increase of automobiles is true, let alone as much as claimed, then the solution is simple – don’t buy the damn foreign-made car. Buy an American-made car and give your neighbor (and their family members) both a job and a living wage instead of having to live off welfare or on the streets. I’d be willing to pay a little more to see Americans making the cars, in the United States, and more of my fellow citizens enjoying a middle-class lifestyle once again. The people complaining about the price increase would obviously prefer that foreign car makers enjoy the profits and jobs, homes, health care and education, not Americans.
Only problem with that is: we don’t buy Chinese cars at all.
We buy Transmissions, Alternators, Radios, steering wheels, suspension parts, Shocks, interior parts, Seats etc. engines, brake systems, exterior panels, fuel pumps,
injectors, filters, windshields etc etc etc and then Assemble it.
each one of those items were made by companies with hundreds if not thousands of American workers.
recovery from the last 30 years of Government Stupidity
will be long and dificult
This 1991 4 speed stick Tercel drives great now with 171,000 miles after buying new. Cheap on gas, cheap repairs even by today’s standards. Plenty of access to work on under the hood, what a deal for $6,488 list price then. Yeah, people on the bumper in a hurry, come around idiot come around. To replace this car now would cost at least 20 grand. I hope to drive it until I’m dead.
Pull over and take the bus.
One does NOT have to pay $7000 more for a car.
Buy an American car made in America. How hard is that?
China ships cheap junk where they paid a sweatshop
30 cents to make something they sell in the USA for
$15. We would have to pay a job shop $35 to have
it made here.
We have such a throw away society, that people will
buy the cheap jjunk and throw it away if it doesn’t
work,
You only make a quality life if you obtained things that
last forever or there about.
Rednecks buy stuff over and over because
they like the NEW JUNK. It’s called, “reckless spending.”
If you live in another country……. well you are screwed for
now……until we sell our products equally ….dollar for dollar.to China.
Here is how it works. China and other countries subsidize their important industries and put tariffs on American products. They then can dump cheap products into America until our industries go out of business. America then has to buy their products at their prices because our jobs moved over seas.
This because the Chamber of Commerce and the Politicians have shut all the Factories down and sent them to China, laid off all the workers and buy all the parts from China to help them build their WAR MACHINE to fight us like they did in the 1930’s with Germany. Now they are paying for their GREED and CRYING about it.