Trump’s Tariffs Drive Average Listed Price of New Vehicles Above $50K Once More | Carscoops

      Prices are anticipated to continue increasing unless the US government changes its stance on import tariffs.

      April 21, 2025, at 17:11

      by Andreas Tsaousis

      Cloud Theory is a company that has been monitoring pricing data across the US since 2018.

      Automakers and dealerships began reducing incentives and discounts in February, concerned about Trump's tariffs. Once these tariffs were enacted, advertised prices increased and are likely to keep climbing unless there are any changes.

      On December 7, 2024, the average listed price of new cars was $50,030. Since then, it briefly fell below $50,000, which was positive news for buyers. However, on April 14, the average price of new vehicles once again slightly surpassed that milestone, reaching $50,025. Even more concerning, this figure is projected to rise due to Trump’s tariffs.

      What Is the Advertised Marketed Price?

      The Average Transaction Price (ATP) indicates what consumers ultimately pay. In contrast, the average marketed (or advertised) price is what dealers offer for a vehicle, often including incentives and discounts. Consequently, it does not always represent the actual amount a buyer pays. The true price can only be ascertained through daily transaction tracking, which is the focus of Cloud Theory.

      More: Detroit Is Urging Trump to Halt His Import Tariffs That Threaten Thousands of Auto Jobs

      Cloud Theory has been monitoring average marketed prices by VIN at franchised dealerships across the country daily, in part to assess the impact of actions taken by Trump's administration, such as the import tariffs implemented on April 2, on the automotive market.

      Rick Wainschel, vice president of data science and analytics, informed Auto News that the recent price hikes result from manufacturers and dealers cutting many discounts and incentives around mid-February, coinciding with President Trump’s announcement of significant tariffs on imports.

      “Every industry, including automotive, is uncertain about how to plan for this,” Wainschel stated, noting that this decision reflects a precautionary approach as everyone worries about potential outcomes: “There are reductions happening with future uncertainty in mind.”

      Conditions Were Detrimental During the Pandemic; They May Deteriorate Now

      With a comprehensive database since 2018, Cloud Theory has a wealth of information. For instance, in March 2021, during the COVID pandemic, it observed a significant rise in advertised prices as automakers faced historic inventory lows due to the microchip shortage and shifted production toward more profitable vehicles. Six months later, in September 2021, advertised prices exceeded $40,000 for the first time, climbing to $51,824 on July 7, 2023.

      More: Stellantis Faces Downgrade Amid Tariff Challenges

      Over the past year, the highest average marketed price reached $50,590 on June 6, 2024, before gradually decreasing as inventories grew to nearly 3 million vehicles. By February 2024, the average marketed price dropped to $48,544. This number began to rise again following the announcement of new tariffs by the Trump administration. Since April 1, just one day before the tariffs were due to take effect, average advertised prices surged further and have continued to increase.

      While numbers may not always reflect the complete situation, Cloud Theory's data unmistakably indicates that unless the administration alters its approach, prices will escalate as automakers are reluctant to absorb the financial burden alone, meaning buyers will ultimately face higher costs. It’s straightforward.