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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
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After all this time, it still amazes me that Trump has no idea how tariffs work.
jackjjackson · 61-69, M
It amazes me how clueless YOU are about how ANYTHING works. Probably starts with your never having a WORK ethic. @LeopoldBloom
Subsumedpat · 36-40, M
@LeopoldBloom The fact is that tariff barriers weaken the middle class. In the short term, they raise consumer prices. In the medium term, they weaken the nation’s manufacturing competitiveness and undermine middle-class jobs. In the long term, they inhibit innovation and the emergence of the next generation of middle-class jobs, weakening our children’s toe-hold in the middle class and sapping the nation’s prosperity over time .Tariffs are just an inflation causing tax.
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SusanInFlorida · 31-35, F
@LeopoldBloom trumps latest observation: "I couldn't care less if car prices rise".
jackjjackson · 61-69, M
There are plenty of NON TARIFFED cars to buy and plenty of reason NOT TO BUY tariffed cars. @SusanInFlorida
Subsumedpat · 36-40, M
@jackjjackson There are no non tariffed cars, Trump put a 25% tariff on car parts even for cars made in the US, there is no US car manufacturer who does not use foreign car parts to build their cars. Tesla is the least effected but the still use some foreign parts like batteries from China and a few other things.
@jackjjackson You're still stuck in the 1970s when there were American cars and foreign cars. As has already been pointed out to you, that paradigm doesn't exist anymore. GM sources parts from other countries, and Toyota builds cars in the US. About the only way to distinguish between American and foreign cars is to check which country the CEO lives in.

Even if tariffs only affected what you think of as "foreign" cars, as the prices of tariffed cars goes up, demand will shift to non-tariffed cars, causing their prices to go up to based on supply and demand. The idea behind tariffs isn't to "punish" foreign countries; it's to stimulate domestic production. Applied correctly, tariffs can be very effective. Applied for personal reasons the way Trump is doing it will have the opposite effect.
jackjjackson · 61-69, M
Ever hear of a gently used car duh? @Subsumedpat
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@jackjjackson The price of used cars will go up, too, as more people will want them to avoid the tariffs. Supply and demand.

If you think this is to "enhance American production," you're even more gullible than I thought. The tariffs are Trump's personal vendetta against countries he doesn't like. No business is going to make long-term investments in production capacity when they know Trump could change his mind next week.
jackjjackson · 61-69, M
Except they already have factories and offices and currently being built. The tariff plan is working. Time to get on board Leo. @LeopoldBloom
@jackjjackson Cite? Unless you're talking about agreements that were entered into during the Biden administration.

Narrowly targeted tariffs can be useful in certain cases. Trump's blanket tariffs will only cause inflation and unemployment. It's not like industries can ramp up domestic production overnight. You seem to have bought Trump's BS that foreign countries will pay the tariffs imposed here.
jackjjackson · 61-69, M
Biden left the tariffs created by Trump 1 in effect without change. @LeopoldBloom
@jackjjackson Yes. Those were targeted tariffs, not blanket tariffs imposed as part of a personal vendetta.
jackjjackson · 61-69, M
“personal vendetta “? Even the dims and MSM haven’t tried that one yet. Your imagination is seemingly boundless. @LeopoldBloom