Denver (KDVR) – With a new tariff on cars and car parts that are expected to enter next week, prepare not only a jump in the costs of new vehicles but also used and repairs as well.
These new customs duties are scheduled to start on April 3 and can expand more weeks to follow up. This is expected to reach your wallet in several different ways, as it is expected that the prices of new vehicles will rise.
“This can be anywhere in zero to 25 % of what it is today,” said Matthew Groups, President and CEO of the Colorado Automobile Association.
He said that there is a lot of uncertainty, especially when the prices rise exactly.
“It will depend on the type of car you are looking for and how this individual company responds,” said Grouvs.
Some companies may increase the costs immediately, while others may choose to eat their losses for as long as possible, and with the tariffs of definitions that affect auto parts as well, many may not realize that even the American brand vehicle may see repair costs.
“I do not think, as you know, that the medium F-150 owner, for example, knows the American parts for the parts or final gathering, which is international,” Group said.
Used car prices may also rise, with increased demand, but we expect to come with delay. However, it is believed that consumers will continue to get options even if the uncertainty is now waving on the horizon.
“For every work, there is an equal and opposite reaction, right? So the market will respond to this and discover the best way to make cars within their consumers.”
There was also talk about insurance rates that rise with these definitions. Grouves believes that coverage costs will not be affected immediately because the value of the car does not change, but he said it is something to be monitored.