As we all have heard, the automotive industry is facing a significant shift with the recent announcement of new tariffs. But if the last 5 years during and post-pandemic have taught us anything, it’s that car dealers and manufacturers are resilient. We can focus on the right things, adopting new ways and processes to continue to drive business, innovate new strategies and find opportunities within a disruption.
On March 26, it was revealed that a 25% tariff on all cars built outside the U.S. will take effect on April 3, 2025. This change is expected to impact all Original Equipment Manufacturers (OEMs) due to increased parts costs, leading to market-wide price hikes.
But as your trusted partner, Autotrader has mapped out a few actions and strategies for you to focus on. And remember – just because the road gets bumpy, doesn’t mean it still won’t take you to a desired destination and there aren’t opportunities for continued success and growth.
“The automotive industry has always been dynamic, and those who adapt quickly often come out ahead.”
– Jade Terreberry, Senior Director of Strategic Planning, Autotrader and Kelley Blue Book
To help you prepare and navigate as strategically as possible, especially when it comes to your business and marketing strategies, we’ve outlined some of the recommended actions to take as soon as possible.
Embracing Change: The Only Constant
In times of uncertainty, it’s essential to stay agile and make real-time decisions based on real-time data. Jade Terreberry, Senior Director of Strategic Planning at Autotrader and Kelley Blue Book with Cox Automotive is emphasizing this approach to come out ahead:
“Make real-time decisions with real-time data every day. Keep your foot on the gas and recognize that current conditions are creating urgency for the consumer.”
What will the new tariffs most likely mean for the automotive industry?
The announcement of the new tariffs has created a sense of urgency among consumers and dealers alike. Here’s a breakdown of not only what this means for you, but also some of the opportunities you should have (strongly!) on your radar. Make sure your business and marketing strategies are laser sharp to capture these opportunities:
Surge in Shopper Activity
Shoppers are expected to flock to the market to buy before the price increases take effect. Over the past weekend March 29th and 30th, traffic to our sites spiked significantly: Kelley Blue Book saw a 26% increase in visits on Thursday, and Autotrader experienced a 16% increase in used car leads on Saturday. Dealer.com also reported a 50% increase in new car leads – the highest single-day lead volume YTD.1
April Buying Frenzy
With tax return season peaking, consumers who have been hesitant will act now to get ahead of these changes. This creates a perfect storm of consumer urgency and opportunity for you. Looming rising prices and peak tax refund season are likely motivating buyers to act quickly.
OEM and Dealer Urgency
It’s critical to market and list your inventory now to capture this ready-to-buy audience. The market share shifts and shakeups create opportunities for proactive dealers like you.
Sales Forecast
The full-year Seasonally Adjusted Annual Rate (SAR) has been revised from 16.3 million to 15.6 million due to economic uncertainty, affordability challenges, and tariff impacts.2 Make sure your business forecasts align with this shift and map out additional ways to get your vehicles in front of ready-to-buy buyers on third-party marketplaces like Autotrader and Kelley Blue Book.
The compounding effect of tariffs and tax season
The timing of the new tariffs coincides with tax season, which adds another layer of urgency for consumers. Some might consider this a golden window of opportunity before the storms hit. Here are some key points to consider to market to and capitalize on this opportunistic timing:
Consumer Urgency
Consumers who have been on the fence are already getting off the fence. The next couple of days and weeks can be really good for both import and domestic sales. Make sure your marketing is pointing to this consumer urgency, your dealership is aligned with a sales strategy, and processes have been put in place to help deals go through as quickly and efficiently as possible. Remember your 3 P’s – People – Process – Product.
Tax Season
Refund amounts are higher than last year, and the peak of tax season is early to mid-April. This means consumers have additional purchasing power, which can drive market activity.
Vehicle Purchase/Lease Plans
Understanding consumer behavior is always important, but it’s crucial during tax season. Autotrader’s research reveals that many consumers are gearing up to make their vehicle purchases or leases in the coming months:
- 14% plan to purchase within the next month
- 33% within 2-3 months
- 28% within 4-5 months
- 18% within 6-12 months
- 75% plan to use financing to supplement their purchase
These statistics underscore the urgency and timing of consumer behavior. Knowing that a significant number of consumers are planning to purchase or lease soon allows you to better prepare your inventory, marketing, and sales efforts to align with these timelines. Additionally, with 75% of consumers planning to use financing, offering attractive financing options becomes crucial to capturing these buyers.3
It’s time to hyper-focus on your advertising and inventory
To capitalize on the current market conditions, and prepare for the upcoming tariffs, it’s essential to focus on advertising and inventory management. Here are some strategies to consider:
Inventory and Pricing
When new car prices go up, used car prices also increase, which means you can offer consumers more for their trade-ins. This creates an opportunity to boost your inventory with valuable trade-ins. Have your BDC’s in your service department calling customers that passed on your previous offers to buy their car, making sure they know current Kelley Blue Book values.
Diversified Revenue Streams
Focus on fixed operations, certified pre-owned (CPO) vehicles, and inventory acquisition. Keeping your marketing dollars up to stay in front of consumers is crucial.
Relevant Autotrader Advertising Solutions
To help you navigate the current landscape of tariffs and tax season, here are some key Autotrader advertising solutions that can increase your inventory reach and exposure:
- New Car Boost: Show used-car shoppers they can afford new with similar monthly payments. This feature can help convert used-car shoppers into new-car buyers, especially during tax season when consumers have additional purchasing power.
- Spotlight Ads: Drive more clicks and engagement to your inventory, whether it’s hot vehicles or cold vehicles. This solution is perfect for capturing the attention of consumers who are ready to buy before prices increase.
- Advanced Ads Premium: Retarget shoppers with compelling ads across social media and premium websites. This ensures your inventory is visible to buyers acting now before prices increase.
- eLot: Target real-time shoppers during their valuation and search journeys, serving up relevant inventory based on their recent search history. This helps you connect with consumers who are actively looking to make a purchase.
For the Road Forward
As we navigate these changes, it’s essential to stay proactive and adaptable. We leave you with some final key strategies to consider in order to focus on in the face of new tariffs:
Encourage Shoppers to Act Sooner Rather Than Later: With the impending price hikes, it’s crucial to encourage consumers to make their purchases now.
Diversify Inventory and Revenue Streams: Incorporate used and CPO vehicles into your inventory to maintain stability.
Utilize Real-Time Data and Robust Marketing Strategies: Stay competitive by making data-driven decisions and leveraging effective marketing strategies. If you’re an Autotrader client, then you have access to nVision.
The automotive industry is no stranger to disruption, but with every challenge comes an opportunity. By staying proactive, making real-time decisions, and leveraging the tools and strategies available, you can navigate this new landscape successfully.
“Keep doing what you’re doing and recognize
that consumers that need a car are still going to need a car.
Meet them where they are and keep your foot on the gas.”
– Jade Terreberry
By embracing change and staying ahead of the curve, you can turn this period of uncertainty into a time of growth.
Autotrader is considered best-in-class for a reason, especially as the #1 marketplace for better leads and highest close rates in the industry.4 We have the data that connects and activates your data, and we have the shoppers. We know what they want, and our goal is to match them with our dealer partners, driving quality leads that have the highest gross profit on average industry wide. We connect you with customers virtually, to move shoppers to you, so that you can focus on building and letting your brand shine.
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1: Source Data: Pixall, 3/29/2025 compared to average Saturday YTD
2: Source: https://www.coxautoinc.com/insights/#snapshot
3: Source Data: Cox Automotive Research & Market Intelligence – Consumer Community 3/3/2025 – 3/7/2025 – 2025 Cox Automotive Proprietary and Confidential
4: Based on average profit on vehicle sales across Autotrader and Kelley Blue Book compared to sales across other third-party listing sites, VINSolutions, January – December 2023
