Will tariffs increase the value of 2nd hand cars?
Discussion
Unlikely in the UK, at least for the foreseeable future. If anything used values will drop as manufacturers from the EU and Far East will look to offset their reductions in US sales in other markets. Bear in mind most of the UK's imports come from these countries, it's quite possible these manufacturers will look to the UK to help plug some of the shortfall. And as we've yet to introduce reciprocal tariffs on the US, it shouldn't really affect imports from the US either, albeit this is a much smaller number.
Of course, if you're based in the US then it's likely used cars will hold their value more due to a shortage in supply of new imports and a lack of US based manufacturing capacity to backfill.
2021 / Covid was very different - interruptions to supply chains, reduced manufacturing, etc, means a global shortage of new cars which is why used kept their value back then.
Of course, if you're based in the US then it's likely used cars will hold their value more due to a shortage in supply of new imports and a lack of US based manufacturing capacity to backfill.
2021 / Covid was very different - interruptions to supply chains, reduced manufacturing, etc, means a global shortage of new cars which is why used kept their value back then.
AudiMan9000 said:
Topic. Thereby closing the negative equity gaps between the value of PCP cars and their settlement figures?
Similar thing happened in 2021. My Q3 broke even after just 12 months despite not having paid any deposit on the PCP.
Where in the world are you?Similar thing happened in 2021. My Q3 broke even after just 12 months despite not having paid any deposit on the PCP.
If you're in the USA, then quite possibly.
If you're in another affluent market, it's more likely to have the opposite effect as car makers look to shift as much of their sales as they can away from tariff central, flooding (might be too dramatic a term) your market with new cars.
If you're not in the USA, or anther affluent market, it's unlikely to make any difference.
If anything, "tariffs" - and the associated market downturn, global trading uncertainty and possible recession - will soften the value of expensive/new cars and increase demand for cheaper/older cars. There will always be outliers but I see that as a general trend. Of course, its quite vague.
I would be more worried for the UK and European manufacturers such as JLR, Mercedes, BMW etc who rely somewhat on sales in the USA. Its inevitable there will be a downturn there, and a squeezing of their bottom line. We saw it post-dieselgate with Volkswagen. They stopped offering "interesting" cars such as the Golf convertible, Beetle, Scirocco etc and we were left with the ID3, Mk8 Golf and other more "core" to their people's car mass manufacturing bread and butter offerings.
We had to suffer the T-Roc convertible. That alone, is a reason to be concerned.
I would be more worried for the UK and European manufacturers such as JLR, Mercedes, BMW etc who rely somewhat on sales in the USA. Its inevitable there will be a downturn there, and a squeezing of their bottom line. We saw it post-dieselgate with Volkswagen. They stopped offering "interesting" cars such as the Golf convertible, Beetle, Scirocco etc and we were left with the ID3, Mk8 Golf and other more "core" to their people's car mass manufacturing bread and butter offerings.
We had to suffer the T-Roc convertible. That alone, is a reason to be concerned.
Gassing Station | Car Buying | Top of Page | What's New | My Stuff