Tariffs Loom, But Shoppers Still Have Options: Cars.com Releases Its 2025 Affordability Report

LISTEN UP, CAR BUYERS! The automotive market is on the brink of a seismic shift, and you need to be ready. Cars.com has just dropped its 2025 Affordability Report, and the news is a mix of challenges and opportunities. Let's dive in and see how you can navigate these choppy waters.



THE TARIFF TIDAL WAVE IS COMING!

Mark your calendars, folks! April 3, 2025, is the day when a 25% tariff on non-US assembled vehicles could hit. This means prices for new vehicles could skyrocket by $3,000 to $10,000. OUCH! But don't panic just yet. There are still some great deals out there if you know where to look.

BEST VALUE VEHICLES: YOUR LIFELINE IN THE TARIFF STORM

Cars.com has done the heavy lifting for you and identified the best value vehicles across segments. Here are the winners:

- Subcompact Car: Nissan Versa (SV)
- Compact SUV: Ford Escape (Active)
- Electric Vehicle: Hyundai Ioniq 6 (SE Long Range)
- Full-Size Pickup: Ford-150 (XL 4x2 SuperCab)

These vehicles offer a great balance of price, safety features, tech inclusion, and fuel costs. So, if you're in the market for a new ride, these are the ones to consider.

THE GOOD NEWS: AFFORDABILITY IS IMPROVING!

David Greene, Analyst at Cars.com, says, "Affordability is improving, but we're not out of the woods." Two interest rate cuts in late 2024 have provided some relief, but the average new-car price remains stubbornly high at $49,000. However, there's a silver lining: new-car inventory priced under $30,000 rose by 42% year over year in November 2024. This means there are more affordable options out there for budget-conscious buyers.

THE BAD NEWS: HIGH PRICES AND FINANCIAL STRUGGLES PERSIST

Despite the improvements, high loan delinquencies and falling used-vehicle values are making it harder for consumers to trade or sell vehicles. This means you need to be extra careful with your financial planning. But don't worry, Cars.com's newly enhanced platform aims to simplify the process for shoppers, enabling easy comparisons of vehicles and financing options.

THE EVOLVING DEFINITION OF "AMERICAN-MADE"

The concept of "American-made" vehicles is undergoing significant changes. Foreign automakers with US-based facilities are increasingly challenging traditional Detroit brands. This means you might find some surprising options when you're shopping for a new car.

THE EV MARKET: ADJUSTING TO CHANGING DEMAND

The EV market is balancing supply and demand, with declining prices for used EVs driving increased accessibility. In 2024, used EV prices fell more than twice as fast as the broader used-car market, making them an attractive option for cost-conscious buyers. For new EVs, inventories increased by 35% year over year, though price sensitivity remains an issue.

THE BOTTOM LINE: YOU STILL HAVE OPTIONS!

So, car buyers, don't let the looming tariffs scare you. There are still great deals out there if you know where to look. Stay informed, do your research, and don't be afraid to negotiate. The automotive market is changing, but with the right strategy, you can still come out on top.

BOO-YAH! You're ready to tackle the tariff tidal wave and find the best deals on the market. Happy car shopping!