Pre-tariff ‘pull-ahead demand’ adds extra 153,000 vehicle sales in March

With so many people pulling purchases forward, analysts warn the next few months could feel a lot slower. (2 min. read)

Author

Marcus Amick
April 11, 2025

March set off a mad race to a dealership—akin to a sugar high. But the next leg or so of the run will set the pace, as that high settles into the new reality of tariffs.  

First things first: Fears of winding up on an episode of “Tariffs Gone Wild” prompted car shoppers to drive, pedal, or walk to their local dealerships—sending new vehicle sales surging last month, according to a new Cloud Theory report.

  • Consumers hoping to completely avoid the land of the unknown—the new world of 25% tariffs—led to an additional 153,000 new vehicle sales in March.

  • Buyer concerns about higher prices drove new vehicle sales from roughly 960,000 units in February to 1.31 million units in March, a 38% jump month-to-month.    

Sure, those seasonal, lifesaving tax refunds helped—they always do, right? But the biggest driving force behind the mad dash to showrooms was consumers’ fears of having to dish out more for those new rides they’ve been eyeing.    

What they’re saying: “Consumers, in anticipation of these higher prices, rushed to buy new vehicles in the current period. While this provided a boost in the short run, the 'pull ahead' effect of these accelerated sales runs the risk of leading to a hangover effect that depresses results going forward,” said Rick Wainschel, Vice President of Data Science and Analytics for Cloud Theory. 

Zooming in: Despite avoiding major MSRP hikes, the March dash to dealerships likely caught a few buyers off guard when they arrived.

  • From February 23 to March 31, the marketed priced new vehicle rose daily, growing by $1,123 over this time led by extra-large SUVs, full size pickups, and heavy-duty trucks.

Big picture: While the short-term allowed buyers to get ahead of the price increase curve (spiking sales and stakeholder spirits in March), the longer-term effects of the levies are poised to set an entirely different kind of mood.  

"Consumers are well aware of the risks that these tariffs pose in terms of future cost hikes, with price increases potentially moving from in the hundreds of dollars to the thousands,” said Wainschel.

Outsmart the Car Market in 5 Minutes a Week

No-BS insights, built for car dealers. Free, fast, and trusted by 95,000+ auto pros.

Subscribe now — it’s free. 

Dealers, you do have a choice.

Most dealerships think they’re stuck with the payment processor baked into their DMS. PayJunction is here to change that.

PayJunction offers an alternative integrated option that gives dealers the freedom to choose a payment solution with more features, lower rates, and tools (like surcharging) to keep more of their revenue without compromising on integration.

Don’t let your payment system limit your success. PayJunction’s industry-leading tech helps auto dealers streamline operations, save time, and boost profitability.

Ready to see how much you could save? We’re offering the first 10 people who book a demo a $100 Visa gift card, just for showing up.

Reply

or to participate.