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Auto Blog
10-08-2025
- Automotive
- Auto Blog
Should You Buy a New Car Before Tariff Price Hikes This Summer?
Dodge skipped a Hemi V8 reveal for the Charger at Roadkill Nights, but CEO Matt McAlear has hinted strongly that the engine's return is still on the way. If you're in the market for a new car, move fast Auto tariffs have been in effect for a few months, so what's the big deal? So far, car manufacturers have been footing the bill. New car prices haven't gone up significantly yet, thanks to several factors, including dealership lots still holding pre-tariff stocks. But most experts agree this situation won't last forever. It may not even last a few more months, with prices likely to rise once 2026 models hit showrooms this summer. Here's what you need to know before making your next vehicle purchase. Manufacturers Softening The Blow For Now The current tariff on imported cars stands at 15-25%, dependent on where manufacturing is based and where their parts are imported from, in addition to the pre-existing 2.5% base tariff. Even cars made in America are hit, since manufacturers still import several parts even if production is in the country. For example, nearly 80% of the vehicles Ford sells in the US are assembled in America, but it still imports about 10% of parts, resulting in high tariff burdens. Right now, car makers are essentially absorbing the cost of tariffs to maintain market share. However, manufacturers can't eat these costs indefinitely, as they are essentially paying the government from their profit margins. New Car Prices to Rise Between $1,200 to $5,000 Industry experts Cox Automotive predict that new car prices could rise between 4-8% by the end of the year, depending on the manufacturer's tariff liability. The 25% tariff on imported vehicles will apply to nearly 80% of vehicles priced under $30,000. Expect a price increase between $1,200-$5,000 on several models across manufacturers, based on the variety of ever-changing tariff factors. By that metric, the Toyota RAV4, which currently has a starting price of $29,550 could be between $1,182-$2,364 more expensive in the coming months. The average price of new cars is set to go well over $50,000. Source: David Paul Morris/Bloomberg via Getty Images American Automakers Are Hurting Too The tariff impact isn't hitting everyone equally. The brands feeling the most pressure are those heavily reliant on imports from Mexico, Canada, and other countries. Most Affected Manufacturers: General Motors – Roughly 22% of U.S. sales are assembled in Canada and Mexico – Roughly 22% of U.S. sales are assembled in Canada and Mexico Ford – Just under 15% of sales from Mexico, but with three major plants there exporting 90% of production to the U.S. – Just under 15% of sales from Mexico, but with three major plants there exporting 90% of production to the U.S. Volkswagen Group – Over 43% of sales affected by tariffs – Over 43% of sales affected by tariffs Nissan – Sources about 27% of its U.S. sales from Mexico, making it heavily vulnerable – Sources about 27% of its U.S. sales from Mexico, making it heavily vulnerable Stellantis (Jeep, Dodge, RAM, Chrysler) – About 23% of sales sourced from Mexico; already halted production at Mexico/Canada plants (Jeep, Dodge, RAM, Chrysler) – About 23% of sales sourced from Mexico; already halted production at Mexico/Canada plants BMW – The Mexico plant produces the top-selling 3 Series, 2 Series Coupe, and M2, with nearly all output going to the U.S. Moderately Affected: Honda – Sources nearly 13% from Mexico – Sources nearly 13% from Mexico Hyundai – About 8% of sales are produced in Mexico – About 8% of sales are produced in Mexico Toyota – Around 8% of sales are produced in Mexico Least Affected: Brands with significant U.S. manufacturing footprints are in a much better position. These include Toyota and Honda, which have large domestic production facilities and can avoid many of the tariff impacts on their most popular models. Prices of New Cars to Go Up This Summer All signs point to new car prices going up in the summer of 2025. Industry analysts suggest that the current price stability is temporary, as manufacturers run through existing inventory and absorb costs in the short term. Manufacturers typically make midyear price adjustments over the summer months, even without the looming threat of tariffs. With more price increases expected, we're likely approaching a tipping point, one of no return. Is Now the Right Time to Buy a New Car? If you're in the market for a new car, the window for current pricing is closing soon. While prices will likely increase, the hope is that manufacturers will continue to offer incentives to move cars off lots. If you can wait, you might find better deals on domestically produced alternatives, though pricing on those will also see market correction. If you have your eyes set on a particular model that is affected by tariffs, now might just be the best time to get a good deal on it. About the Author Simran Rastogi View Profile
The Drive
08-08-2025
- Automotive
- The Drive
Dodge CEO All but Confirms Hemi V8-Powered Charger
The latest car news, reviews, and features. The gas-powered Dodge Charger is back. SRT is back. The Hemi is back. So when are we going to see them all in one place? I'm going to go out on a limb here and say 'soon' — maybe even by the time you're reading this. Because at this point, it seems like Dodge has all but confirmed that we're going to get a new V8-powered Charger. Setting aside the fact that the Challenger is now the Charger 2-Door, there are already four different ways (three, technically ; the base Charger BEV is still M.I.A.) to build one: two electric, and two gas. But for V8 diehards, that number might as well be zero. So go ahead and hold your breath, Hemi fans, because it's only a matter of time. At a preview event for the turbocharged Sixpack, Dodge CEO Matt McAlear spent quite a bit of time answering questions about the future of the company's bruiser of a sedan. In light of those recent Hemi and SRT announcements, it should come as no surprise that the first round of questions were all about whether we'd see even more power from the new Dodge Charger. The short answer was one we'd hear again and again throughout the course of the Q&A: 'We're just getting started.' Byron Hurd Stellantis 'At this point, we're here to talk about the six-pack,' McAlear said. 'And I'm extremely excited for what the team has turned out. I mean, I think hopefully you all agree it sounds incredible. When you get behind the vehicle or inside the vehicle, it sounds even better. This is the next generation of performance, and these powertrains outperform the V8 they replace,' he said. 'But long-term, there's more to come.' More cylinders, certainly. But maybe not necessarily more power. As we've seen from the revived Hemi Ram, the V8 is not being positioned as its range-topping engine. The 670-horsepower Daytona EV will wipe the floor with any ICE-powered Charger, eight cylinders or otherwise, and on the combustion side of things, the 550-horsepower high-output inline six has quite a bit of headroom over both the 5.7-liter and 6.4-liter V8s that it replaces. Dodge has no incentive to dethrone the Sixpack with a garden-variety Hemi, so a truly dominant V8 will have to come in Hellcat form. But will it even fit? 'I'll let you come up here and take a look and get your tape measure out,' McAlear. 'But, uh, don't be surprised if it would fit.' Yep, that's would . 'But, you know, that's the beauty of this platform. Some could say we're lucky, some can say we're smart. Uh, you know, we did not commit to one technology, one powertrain,' he went on. 'And that's why the beauty of this is in the multi-energy. A lot went into this platform from the beginning to be able to evolve over time and flex with consumer demand and changes in [regulations].' But make no mistake, even a revived Hemi won't mark the end of the electric Charger. 'It's no secret that we're absolutely flexing more into ICE production right now,' McAlear said. 'But we are not walking away from the power, the performance, and the excitement that battery electric can provide.' Got a tip? Drop us a line at tips@
