Tariffs Create Cloud of Uncertainty Over Spring Car Buying Season


  • While car prices across most sectors are stabilizing, tariffs could cause significant price increases for brands like Ford, Toyota, and Chrysler with models imported directly from Canada and Mexico
  • With question marks remaining around the government’s EV tax credit, hybrid demand is picking up, with inventory down 10% year-over-year


Chicago, IL – Tuesday, February 11, 2025 – While car prices overall are leveling off, the prospect of tariffs – now set to go into effect on March 1 for imports from Canada and Mexico – has muddied the forecast for the upcoming spring car buying season. According to the latest data from AI car shopping app CoPilot, new car prices currently average $48,714, down 1% in the past month alone (equivalent to the amount that they fell in the entire year in 2024). Used cars, meanwhile, fell by about $200 last month to an average of $32,055. But it remains to be seen whether tariffs will erase these modest price dips in the coming months.




The impact of tariffs will likely be felt most acutely in terms of makes and models that are manufactured and imported directly from Mexico or Canada. Examples include the Toyota Tacoma - imported from Mexico, and currently priced $47,389 and with 46 market days supply; the Chrysler Pacifica – imported from Canada, currently priced $46,765 and with 89 market days supply; and the Ford Maverick – imported from Mexico, currently priced $33,653, with 95 market days supply.

“While the spring car buying season is typically busier, with consumers more flush with tax refund checks, the prospect of tariffs is clouding the outlook for sales this year,” said CoPilot CEO Pat Ryan. “Consumers may want to consider making a purchase in the short term if they can, or sticking to brands with less exposure to supply chain and manufacturing operations in Mexico and Canada.”

Other market trends to watch include:

  • This month, CoPilot’s top new brand to buy is Subaru, with an average price of $35,640, pricing it just 9% above its pre-COVID levels. The top used brand is Mitsubishi, priced on average at $14,692 (or 7% higher than its March 2020 levels).
  • Hybrid demand is picking up. Popular hybrid models include the Toyota Sienna (27 market days supply) and the Toyota Corolla (31 market days supply). While EVs saw a pop in sales toward the end of 2024, as consumers rushed to buy in anticipation of the potential end of tariffs, they have since reversed course, with supply up by 13% in 2025 so far.
  • Minivans, long the most inflated segment in the used car market, saw a 4% drop in prices last month. Now averaging $29,962, the average used minivan price is approaching that of a crossover ($28,300). Still, minivan prices remain significantly elevated above their pre-COVID levels (34% more expensive than March 2020).



About CoPilot

For journalists and publishers, CoPilot’s data has the best real-time view on prices, sales, and inventory in the new and used car market. By monitoring the online inventory of virtually every dealer in the country, every day, CoPilot:

  • Provides fresh, comprehensive, and daily data
  • Offers insight on the new and used market, broken down by segment, brand, model, and fuel type
  • Looks at current retail prices, which (unlike wholesale prices) are a much more accurate reflection of how much consumers are currently paying for cars

For consumers, CoPilot offers the first-ever AI-assisted car shopping app, which:

  • Searches virtually every dealer and analyzes millions of vehicles to find the best car for your needs, at the right price
  • Helps you avoid add-ons and hidden fees, and negotiate the best price
  • Does not take money from dealers, providing customers with truly unbiased recommendations


Media Contact:

Kerry Close Guaragno

kclose@groupgordon.com

732-609-2644