Your Money Minute Auto Tariffs All Drivers 4/16/25
Apr 16, 2025
Exploring the effects of auto tariffs, this discussion reveals how rising prices are pushing consumers to keep their older cars longer. It highlights the financial strain families face as maintenance costs increase during an economic slowdown. With the automotive market under pressure, listeners gain insights into how tariffs are reshaping their driving choices and budgets.
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Drivers Keep Old Cars
- Most people facing higher new car prices due to tariffs choose to keep their current cars.
- Tom Maoli, a car company owner, shares this real customer behavior from his experience.
Old Car Costs Rise Too
- Keeping older cars becomes more expensive because parts and maintenance costs rise in line with tariffs.
- Repairs like tires and brakes will cost more, squeezing car owners financially.
Transportation Demand Is Inelastic
- Demand for cars remains steady despite tariff-induced price hikes for new and repairs for old cars.
- Transportation is essential; people will pay for vehicles to meet daily needs regardless of cost.