A recent survey has indicated that the majority of Americans are reconsidering their plans to buy cars amidst expectations of a significant price surge. The report, issued by HarrisX and the marketing firm, Allison Worldwide, is based on a poll of approximately 1,760 adults. Respondents anticipated a rise of an average of 14.4% in car prices within the next year and over half of them also predicted an increase in interest rates for car loans.
Many potential buyers are cancelling their vehicle shopping plans altogether due to the anticipated price hikes. In fact, only 17% of respondents revealed that they were "very likely" to buy a car within the next year, a drop from 21% recorded in February. Furthermore, as many as 56% of consumers felt that this was not a good time to purchase a vehicle, an increase from 46% in the previous survey.
Rebecca Lindland, managing director of mobility advisory service at Allison Worldwide, emphasized that "consumers are significantly revising their purchasing plans, not just delaying them." Meanwhile, evidence of a rush to buy cars before the introduction of tariffs on Mexican and Canadian imports was seen in March, according to Deutsche Bank's analysis of "panic buying".
The survey also showed a consistency in buyers' preferences, with 62% most likely opting for a gas or diesel-powered vehicle and 71% likely to choose a domestic car. However, Lindland pointed out that even the perception of American-made cars was negatively affected, along with vehicles manufactured in numerous other countries. Lindland stated, "The tariff uncertainty and inflation have undoubtedly impacted consumers. The decline in buyer interest, even for American-made vehicles, signals that no automaker is immune to the economic pressures being experienced."