Tariffs on cars and parts are reshaping how Americans buy and budget for vehicles, with more than 70% of prospective car buyers adjusting their plans in response to rising costs, according to a new LendingTree survey.
Half of consumers planning to purchase a vehicle in 2025 said they’ve increased their budgets due to tariffs, while 72% reported changing their timeline — with 37% planning to buy sooner and 36% delaying their purchase.
LendingTree insurance expert Rob Bhatt noted that the long-term impact of tariffs remains uncertain. “We don’t know the full impact of tariffs on car prices yet, and we may not know for a month or longer,” he said. Bhatt advised buyers to budget cautiously and avoid decisions that might lead to excessive debt or reduce essential spending.
The survey, which included 2,000 U.S. consumers, found that 81% of those who already bought a vehicle this year did so earlier than planned due to concerns over tariffs. Among those still intending to buy in 2025, 67% are leaning toward U.S.-made vehicles, which are less exposed to cost hikes tied to imported parts.
Concerns extend beyond vehicle sticker prices. About 77% of Americans worry that tariffs will drive up overall car ownership costs, including vehicle repairs and imported components. Bhatt warned that even domestically assembled cars could be affected. “Very few cars are built entirely in America. Even those assembled in America often rely on imported parts,” he said.
Additionally, 55% of Americans expect auto insurance premiums to rise due to tariffs, with 84% of upcoming buyers planning to factor insurance into their budgets. “Insurance companies factor the cost of car repairs into their rates,” Bhatt explained. “If tariffs make the cost of repair parts go up, car insurance rates are also likely to go up.”
Among those concerned about increased ownership costs, 40% said they plan to drive less — a number that jumps to 54% among parents with young children and 50% for Gen Z drivers.
Bhatt added that while navigating tariffs is challenging, traditional strategies still apply. “Shopping around can often help you find cheaper car insurance,” he said, advising drivers to ask about discounts and to raise deductibles where appropriate.