Rush to the showroom and buy a car NOW? Media sparking lemming-like behavior among car shoppers.
Photo above - Guess how much a fully equipped Equinox RS (gas engine) will cost beginning April 3rd. Disclaimer - although this car is shown attempting an off-road maneuver, this is NOT recommended. A closed course and professional driver were involved.
If you want a good deal on a car, you have just 4 days. 3 if your car dealer is closed on Sunday. It probably won’t be closed this Sunday however . . . it’s the end of the month.
Trump’s 25% tariffs take effect at midnight on April 2nd (Wednesday). Clearly someone selected this date with care, to avoid any confusion that the new tax was an April Fool's joke. Anyway, automakers are taking it seriously. This week at least one Chevy dealership got as many cars and trucks from GM factories at it normally receives in a month. (see link below)
Will this tsunami of vehicles in the showroom spark price cuts, to clear out the overstocked inventory? Or will prices soar, because salesmen know the clock is ticking? It’s never been more important to NOT be an idiot if you’re car shopping.
Okay . . . suppose you want to be safe. No gas guzzling full size American made SUV or pickup trucks. Nothing electric. Nothing made in Korea, Japan, Mexico, Germany, Canada, England, or Krgyzstan. Something like the rock-solid Chevy Equinox should be in the zone, right? The traditional gas powered one. Not the new all electric Equinox that costs as much as a Tesla, but has shorter range, accelerates slower, and gets worse MPGe.
Gas Equinox? Not so fast. The all-American Equinox will be subject to the 25% tax on midnight on April 2nd. WTH!!! Evidently no Equinox is made in America. They come from Ontario Canada. And Ramos Arizpe, Mexico, And Hubei, China. Check the window sticker to be sure if you insist on casting shade on one of these cities.
If you DO decide to buy a new car on or before April 2nd, make sure that you finalize all the paperwork on THAT day. And accept delivery before midnight too. No telling what the fine print says about taking delivery on April 3rd. Nothing to our own benefit, I’m guessing.
The lowest spec, most affordable Equinox you can today get stickers for $28,600. That will jump to $35,800 on April 3rd. Before delivery, taxes, registration fees, rust proofing, extended warranty, and tire/rim damage insurance. You figure it out. The top of the line Equinox (gas) RS will be $55,151 on Wednesday, plus $1,395 delivery fee and all the other stuff. The era of the $60,000 4-cylinder 1.5-liter Equinox has arrived. With BMW style pricing.
The Trump administration has threatened retaliation against Detroit if car prices go up. I’m not sure what weapons he’s threatening to use. More car tariffs? Making Elon Musk the government "car czar"? That's a position which has been vacant since President Obama named his buddy Steven Rattner to the job. Rattner got busy right away. He immediately put Saturn (GM) out of business. The only non-union auto factory operated by GM. He then set his sights on Pontiac, Oldsmobile, Plymouth, and Mercury. Czar Rattner decided the marketplace had too many choices, and government needed to step in put an end to all this. And make sure all the assembly lines were unionized.
In related news, the White House floated a trial balloon yesterday to RAISE personal income tax rates on high earning Americans. And use the new tax money to make good on Trump's campaign promise to end the income tax on tips. But even this does come together, waitstaff at Chipotle probably won’t be swarming Chevrolet showrooms to buy Equinoxes with this sudden windfall . . .
I’m just sayin’ . . .
Car Buyers Who Fear Tariff Price Hikes Are Rushing to Dealers
Trump 25% auto tariff on imported cars, trucks starts April 3
White House weighing tax hikes for the rich to pay for Trump’s no tax on tips promise: report