Update: Auto tariffs suspended 1-month

[sprubs]

Many auto makers have already stated that 100% of the tarrifs will not be passed on to the customer.

it's fairly pointless to speculate since this administration is so volatile about the only thing you can reliably predict is volatility. but what the heck, let's say the tariffs stuck around. I don't see how the manufacturer absorbs that extra cost of doing business in the long term. maybe they'd take a hit in the short term but long term? No way. This isn't a dig at big business or something it's simply how things work.

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[NextTruck]

Had a Hybrid AWD XLT on order at a firm price quote and deposit. Dealer emailed me this AM and price will go up $3,800 so I asked for my deposit back...I was not desperate for the XLT. If I do not get my deposit back quickly, I will be PO'ed.

Sounds like your dealer is jumping the gun and taking advantage of the situation.

 

[NextTruck]

according to their SEC filing for 2024 calendar year, Ford's net profit margin was 3.18%. however, that's including massive losses from the Ford model e, the electric division.

Which is a lot of money, so there is room for Ford or any manufacturer to absorb some of it and try to keep prices stable. Ford can make the decision to keep loosing money on the e-division, or make changes there. Automakers/dealers didn't worry about consumers when they were adding
$10-$15k markups over MSRP. Storing inventory on remote lots to make it look like there were supply issues (there was for a while). And over the years when they continued to shift plants to Mexico did the commercials say, BTW, your vehicle was made outside the US to save you money and you are saving $X or did they just pocket the difference?

 

[NextTruck]

it's fairly pointless to speculate since this administration is so volatile about the only thing you can reliably predict is volatility. but what the heck, let's say the tariffs stuck around. I don't see how the manufacturer absorbs that extra cost of doing business in the long term. maybe they'd take a hit in the short term but long term? No way. This isn't a dig at big business or something it's simply how things work.

Instead of volatile, I would characterize it differently-playing chess. Remember, there is long game and not just one move - drugs, illegal migration, US manufacturing base, and fair trade. We need to let things play out and not just be listening to automotive YOU-tubers trying to act like they are economists, ultimate insiders, and the first to the internet to enlighten us.

 

[colinl]

Which is a lot of money

3.18% net profit margin is NOT a lot of money, it is terrible.

a small business that low would be on the verge of failure. granted, massive manufacturing companies are different, but it really should've been considerably higher like slingshot assumed/guessed.

Ford cannot absorb a 25% tariff on the Maverick, but I expect their lobbying efforts to ultimately be successful and either a lesser tariff or none at all ultimately applied.

 

[sprubs]

Instead of volatile, I would characterize it differently-playing chess. Remember, there is long game and not just one move - drugs, illegal migration, US manufacturing base, and fair trade. We need to let things play out and not just be listening to automotive YOU-tubers trying to act like they are economists, ultimate insiders, and the first to the internet to enlighten us.

I don't see how to respond to this in a fact based way that won't be perceived as political.

 

[Dave O]

Order now and pay for vehicle in full at the time of placing the order - this should lock in the price no matter what happens.

 

[Edge Haley]

All I was trying to say is that you won't see a line-item called "Tarrif" on a new vehicle window sticker or invoice. It does not work that way. Japanese cars have been subjected to US tarrifs forever. Have you ever seen that on a window sticker? I have not. And it better not show up as a "tax" or whatever you want to call it on a dealer's invoice. They don't collect the tarrif. If they are trying to get extra money from you that way, it is called fraud. The price of goods will reflect the tarrifs. How much of the tarrif gets passed onto the customer is up to the manufacturer/importer, not the retailer/dealer. Many auto makers have already stated that 100% of the tarrifs will not be passed on to the customer.

Wife and I have purchased 4 Honda’s in last 8 years. All manufactured in the United States so no tariffs applicable. Mostly in Ohio. Apple and Oranges.

Universally Tariffs are applied when the item crossed the "border". The on and off again, spur of the moment change can make it impossible to know if your truck will have a tariff since it may already be on a train.

 

[slashsnake]

But tariffs are never applied that way, far as I know. There have been tariffs on thousands of products coming into the U.S, for years. You'll never see it listed as a "tax" on a sales invoice. It's appliied at the border, and it is up to the importer to pay it. If, and how, the importer get the money from the customer (us) is up to them. It sure as hell is not a scumbag car dealer's job to collect it!

Depends, my company for ingredients rolls it into the prices for the overall item, but we use a separate line item for full products on our invoices to customers as they change for a few months before going back to rolling it into the price so if we have an increase they can see why.

Just like some places you'll see that "3% charge for credit cards" listed separately, while others roll it into their prices.

But like you say if you are purchasing something to be imported from overseas, and a new tax is added there's no magic want to make that cost disappear before it ends up in the customers hands. And that's why they have line items and that small print about why prices may be subject to change.

And I'm sorry about your choice in car dealers.

 

[Oscarcat]

Gotta love all the chaos. Really inspires consumer confidence, especially when one is contemplating a $30-$40k purchase.

 

[Edge Haley]

Depends, my company for ingredients rolls it into the prices for the overall item, but we use a separate line item for full products on our invoices to customers as they change for a few months before going back to rolling it into the price so if we have an increase they can see why.

Just like some places you'll see that "3% charge for credit cards" listed separately, while others roll it into their prices.

But like you say if you are purchasing something to be imported from overseas, and a new tax is added there's no magic want to make that cost disappear before it ends up in the customers hands. And that's why they have line items and that small print about why prices may be subject to change.

And I'm sorry about your choice in car dealers.

At least in my state, if you go to Walmart and buy something, you are paying taxes for city 1%, county 2%, state 3%, subway metro .5% +++ all rolled into one line item on your receipt
"Taxes 7%"… I do not remember the tax amount on the Maverick but it was something like $5,000 in taxes (one line item) and my State's tax should have been around $1,800…and the dealer pointed out excessive TAX AMOUNT INCLUDED THE TARIFF was in the tax line item. IF SOMEONE thinks that Ford or the Dealer will eat the TARIFF you need to take a small business course.

As mentioned earlier i did not cancel the Maverick order due to the Tariff I cancelled due to the "on again, off again, on again" traffic is not the way to run a RAILROAD….FORD’S, CHEVY’S AND GM presidents were yelling the same thing at the White House this week!

My salesmen told me yesterday he’s job hunting due to the on-off again BS…and he’s a Commissioned ONLY salesman.

 

[3Wheelin]

Had a Hybrid AWD XLT on order at a firm price quote and deposit. Dealer emailed me this AM and price will go up $3,800 so I asked for my deposit back...I was not desperate for the XLT. If I do not get my deposit back quickly, I will be PO'ed.

...Sounds like you need a new dealership. That one is scamming you

 

[3Wheelin]

Gotta love all the chaos. Really inspires consumer confidence, especially when one is contemplating a $30-$40k purchase.

Agreed..it gets a lot easier if one just listens on hear and gets a giggle. Sooo much drama from some. I grab my coffee & just laugh at a lot of it..

 

[3Wheelin]

Trump is running a "Pump and Dump" scheme. Tariffs are threatened/implemented > market goes down > he and his cronies buy up the discounted stocks. Then low and behold, the tariffs are delayed/repealed! The market rebounds, and they sell the same stocks at a profit. Rinse and repeat. Tariffs make absolutely no sense otherwise.

...wow, just wow...

 

[colinl]

IF SOMEONE thinks that Ford or the Dealer will eat the TARIFF you need to take a small business course.

no question prices will rise, but it's impossible to guess what percent. sales will fall off a cliff if it were to be the full 25%, which is kind of the point of a tariff. to reduce economic activity and create a reason for a trade agreement.

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