Automakers need incentives, transparency to keep buyers engaged — report

So, maybe there haven’t been as many people as initially thought making mad dashes to dealerships—trying to beat the tariff rush. 

First things first: A study by CarEdge reveals that a lot of car buyers are ditching their plans to cop a new ride as the entire Tariffs Gone Wild reality show plays out under the direction of President Donald Trump. 

• Tariff price increases aside, 42% of car buyers surveyed say they’ve already canceled their new car purchase plans due to high prices.

• 65% of new car buyers say they would scratch a new car off their list entirely if monthly payments rose by just 5%.

• 78% would bow out if payments rose by 15%, and more than 83% would stop shopping entirely if payments climb 25%.

More to consider: Even some who have been thinking of purchasing a used ride are now scrolling right past those vehicle listings that are nearly impossible to shake once you start a car search online. 

• 37% of used car shoppers report they’ve already given up on buying due to high prices.

• 60% of those surveyed would be out of the market if used vehicle prices rose 5%. 

• 74% would forget it with a 15% price increase, and 82% would be out if payments rose 25%.

Putting it in context: Given the state of the current market, the idea of even 15% of car buyers pulling back is concerning. 

Digging deeper: Good insight, right? But what does the survey reveal about what automakers and dealers should be doing now to pull those would-be buyers back into the fold? CDG News reached out to Shefska directly for a few tips to pass along. 

• 1) “If automakers want to hold on to potential buyers, they need to act now, not later. That means bringing back incentives, spotlighting models that haven’t gone up in price, and finding ways to stabilize monthly payments.” 

• 2) “Instead of waiting for panic to set in after tariffs hit prices, this is the moment to lean into transparency and value. Make it easy for shoppers to understand what they’re paying and why. If you can’t lower the price, lower the pain.”

• 3) “The mistake for dealers and OEMs right now would be going silent. Consumers haven’t just paused their purchases, they’re watching to see who’s on their side. Automakers and dealers need to stay present by offering helpful tools, honest market updates, and creative ways for people to stay engaged without feeling pressured.”

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