President Trump's recent auto tariffs, implemented at 12:01 a.m. on Thursday, could significantly raise vehicle costs, complicating financial decisions for consumers. With cars being a major purchase, the impact may stretch beyond just transportation—potentially affecting housing affordability for many. Specifically, increased car loans may hinder consumer capacity to purchase homes, particularly as affordable vehicle options diminish. Industry experts predict that while some manufacturers may absorb costs temporarily, dealers and consumers will soon feel the financial strain, particularly impacting low-cost models crucial for working-class families.
"Tariffs of this scale will reshape pricing across the board," says Scott Kunes, CEO of Kunes Automotive and RV Group. "While some automakers may temporarily absorb the cost, that won't hold."
"Price increases will land on dealers and customers," Kunes says. While there's some debate on whether luxury cars will be hit hardest, his bet is that the most affordable models will take the first blow.
"Compact sedans and starter cars, models that had just started to return to the market, could disappear again. Tariffs will squeeze the very category that working-class families rely on."
The added financial burden of a pricier car loan could be more than just a speed bump and prove to be the final roadblock between you and homeownership.
Collection
[
|
...
]