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READ MORE: Experts reveal why it will cost more to own a car this year
Carmakers are
finding ways to pass tariff costs on
to their customers even if the sticker price for vehicles remains steady.
Currently most car parts that enter the US are slapped with a 25 percent tariff.
As such some popular makers such as Toyota have
announced that their models will get more expensive
.
But other automakers are already boosting prices in a way that seems almost invisible initially.
Some brands have quietly slashed rebates and cheap financing deals, which will add hundreds of dollars to consumers’ monthly payments,
Bloomberg
reported.
Average incentives which once took 10 percent off the price of a new car are now around 6.7 percent instead, according to the Kelley Blue Book car buying guide.
Some dealers are also sucking more out of their customers by hiking their delivery fees by as much as $400, according to Edmunds.com.
The stealth charges are a way for automakers to pass on the cost of tariffs without putting consumers off with a large upfront price hike.
‘On the consumer side, they’re seeing several thousand dollars of actual-experience price increase, whereas the factory is saying, “No man, we didn’t raise prices at all,”‘ Ford Dealer Morris Smith III told Bloomberg.
‘Stealth is a good word for it,’ he added.
Such stealth hikes also help companies avoid Trump’s wrath for blaming price increases on his policies.
The President hit out at Walmart earlier this year after it
revealed that it would be raising prices
to help cope with the cost of tariffs.
‘Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected,’ he seethed on his social media site Truth Social.
‘Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!’
As well as the subtle price hikes, the average sale price for a new car rose 2.5 percent in April compared to the month before.
Subaru said that Americans will see
price increases between $750 and $2,055 on new cars
starting this month.
The increases were made in response to ‘current market conditions,’ Subaru said in a statement.
‘The changes were made to offset increased costs while maintaining a solid value proposition for the customer,’ the company added.
Ford also announced price hikes as a result of tariffs, which analysis calculates will add roughly
$480 onto the price of each new vehicle
.
General Motors said it expects to pay between $4 billion and $5 billion annually if tariffs remain at their current levels.
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