25% Tariff Official Thread
- Thread starter Brian Michael West
- Start date
Just my two cents!
Tesla will be the least affected by Tariffs!Short-Term Sales Surge, Then Slowdown:
People will rush to buy vehicles before tariffs increase prices.
Long-Term Higher Cost for Cars and Parts:
Manufacturers are likely to pass those costs along to the dealerships.
The new tariffs caused countries like Canada and China to implement tariffs against the U.S. which can impact the supply chain for parts that travel through multiple countries in the production process.
This means slower sales for dealerships as more consumers are priced out of the new car market.
Dealerships will try and eat some of the costs, making it difficult for them to be profitable.
More Shipment Delays, Which Could Affect Inventory
Tariffs will slow shipments due to additional customs inspections.
Many automakers use just-in-time so minor delays can disrupt production.
Pressure on Service Departments:
Tariffs on auto parts not only drive up the cost of new vehicles but also increase repair costs. Higher parts prices mean that repair shops and the service departments will need to increase their prices and maintenance will cost more.
These increases in prices could lead to higher insurance premiums.
Tariffs will cause layoffs
With rising interest rates, mass layoffs, the rising cost of vehicles, the lowering of wages, war, electric vehicles being shipped directly to the consumer, rising food prices, rising gas prices, and consumers developing a total distrust of dealerships...how does the dealership survive?
I've always felt like it is better to plan for the worst and hope for the best!
