NerdWallet's Smart Money Podcast
Car Prices, Tariffs, and Trade-Offs: What to Know Before You Buy or Move Out
Apr 10, 2025
Shannon Bradley, an auto writer at NerdWallet, shares insights on how tariffs are reshaping the car market and the potential for rising prices. She offers tips on when to buy a car to avoid increasing costs. Amanda Barroso, a personal finance expert, discusses balancing saving and spending, tailored budgeting strategies, and how to enhance credit scores for moving out. The hosts navigate the emotional aspects of financial independence while helping listeners align their financial decisions with personal goals.
37:09
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Quick takeaways
- Recent tariffs, particularly on imported cars, are expected to raise average car prices significantly, prompting consumers to act quickly in their purchasing decisions.
- Balancing savings with purposeful spending is crucial for financial well-being, encouraging individuals to create flexible budgets that support both security and life experiences.
Deep dives
The Impact of Tariffs on Car Prices
Recent tariffs, particularly the 25 percent levy on imported cars and another on auto parts, have significantly affected car prices in the market. In 2021, the pandemic caused car prices to soar due to supply chain disruptions, resulting in average prices approaching $50,000 by the end of 2022. With the implementation of these tariffs, analysts project an increase in average car costs by thousands, complicating the situation for consumers already grappling with high prices. Vehicles that do not comply with the U.S.-Mexico trade agreement face even higher tariff rates, affecting the affordability of many models in the U.S.
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