Dealerships across Central Texas are preparing for potential consequences as new tariffs on imported cars have now taken effect, with auto parts set to be affected next.
On Wednesday, the Trump administration introduced a 25% tax on every imported vehicle and automotive component, which experts say might push up the price of new cars by over $6,000. This development has led some used car sellers to expect substantial alterations in their expenses and stock levels.
Nicolette Perez, who works as the Operations Manager at West Auto Sales, expressed her worries to KVUE regarding the increasing financial pressure within the sector.
Perez, who comes from a family that has operated the dealership for 27 years, mentioned that even prior to the introduction of the new tariffs, locating cost-effective and premium pre-owned cars had grown progressively more challenging.
We believed things were tough during COVID," Perez stated. "Now, let’s wait and see what comes our way.
Perez mentioned that before selling their vehicles, they cover the repair costs. Currently, they are concerned about the potential price hikes and whether there will be sufficient stock available.
Currently, when we talk about simple maintenance like replacing water pumps or, you know, gaskets and seals, both the costs of parts and labor have increased," Perez explained. "The expenses required to maintain our operations are quite steep within this sector.
Perez mentioned that the ambiguity in the sector leaves her with an unsettled feeling. Although it’s still early to assess the complete effects, she stated that she would closely monitor the shifting costs.
“We’ve discussed this extensively," Perez stated. "Now, we simply need to be savvy when buying the cars we plan to resell and understand what’s required to prepare them for customers.”
Post a Comment