GREEN BAY (NBC 26) — Federal tariffs on foreign-made vehicles and auto parts could soon lead to increased car prices for consumers.
Kevin Quinn, Dean of the Donald J. Schneider School of Business and Economics at St. Norbert College, said that manufacturers at first absorbed the cost of tariffs imposed by the United States—but pressure is now growing to pass the cost on to car buyers.
At Le Miuex Toyota in Green Bay, business has been steady.
Owner Bob Le Miuex said his prices haven’t yet gone up, and demand is outpacing supply.
“We’re really competitive right now,” said Le Miuex.
Quinn warns that could soon change.
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"A lot of folks thought that we would see the price increases in the data right away," said Quinn. “We didn’t, and I think because the automobile manufacturers largely decided that they were going to ride it out—but, they're done doing that."
If new car prices go up, used vehicle dealerships will follow suit.
Dan Goben, owner of Dan Goben Cars, a used dealership in Green Bay, said that used car prices last spiked during the pandemic, when the supply of new cars was limited.
The good news, said Goben, is that with tariffs on the automobile industry in effect, banks are financing cars for longer terms than they previously have:
“So, they're [the consumers] getting the same payment—if not a lower payment—even with the price adjustment," Goben said.
If car prices do go up, Quinn said buyers should expect to pay a few thousand dollars more for their vehicle.
