New vehicle sales surge in March, global leaders respond to auto tariffs, car insurance affordability update

Hey everyone. Lots of dealerships are slammed right now:

• Spring market

• Looming tariffs

• End of month

The pressure flipped on like a switch.

Let’s see if it sustains.

— CDG

1. New vehicle sales are forecasted to surge in March

March is looking like a strong month for new car sales—and consumers are spending more than before.

By the numbers: New vehicle retail sales for March are said to land nearly 13% higher than last year.

At the same time, the average new-vehicle retail transaction price in March ($44,849) is up about $637 from the year before.

Worth noting…incentive packages and inventory levels are also up compared to 2024.

Bottom line: Solid March sales and inventory levels could give dealers some cushion as they brace for tariff impacts.

(Go deeper: 2 min. read)

With all the uncertainty swirling around—one thing is clear: it’s busy times in the auto industry…

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2. President Trump’s auto tariffs spark global backlash

President Trump’s 25% tax on imported vehicles and parts has sparked reactions from leaders around the globe.

What we know: Canadian, Mexican, and Japanese authorities are raising concerns about the economic impact of the tariffs. However, the United Auto Workers (UAW) union is confident the President’s move will boost U.S. manufacturing and create jobs.

Bottom line: With reciprocal tariffs hitting Europe soon and concerns from industry giants (even Tesla)—the road ahead is anything but clear.

(Go deeper: 5 min. read)

3. Auto insurance affordability takes a hit—but still better than the 2000s

Auto insurance affordability is taking a hit—but it’s not the worst we’ve seen.

The good news?

In 2022, U.S. households spent 1.51% of their income on auto insurance—down from the peak of 1.9% in 2003.

• That number is expected to climb to 1.6% in 2023 and 1.7% in 2024 as insurers work to offset inflationary pressures.

• And a closer look shows that auto premiums, though rising, are projected to slow in 2025 and beyond.

But now—tariffs are at play, and its possible rate hikes could see sharp increases in the years to come…

(Go deeper: 2 min. read)

• Called a 'scab' during the campaign, Donald Trump wins UAW backing on tariffs

• Top 5 critical moves Nissan MUST make to come back from the brink

• Michigan lawmakers react to Trump auto tariffs

• GM shares tank as U.S. auto industry digests new Trump tariffs

• Toyota's global output rises for second month in February on solid Japan sales

Thanks for reading everyone.

— CDG