DENVER — It could soon cost a lot more to drive a new car off the lot and for now, that's a good thing for auto dealers.
"March, we had the busiest volume month in our 80-year history in Phil Long," said Kevin Shaughnessy, President/CEO of Phil Long Dealerships.
Shaughnessy said the new 25 percent increase on auto tariffs announced by President Donald Trump are bringing in more customers before prices go up.
"We've got over 3,400 vehicles on the ground, which is arguably a little heavy. But if that allows us to sell those rather than vehicles that may come in later with some sort of a price increase, then that's a good thing," he said.
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Vehicles currently in dealership lots won’t be impacted by the tariffs, but keep in mind, that window of opportunity won't last for long.
"The vehicles that are arriving after April 2, they're going to hold those until they figure out what's happening, and then figure out, you know, sort out what the implications are,” added Shaughnessy.
Those implications are hard to predict – so Denver7 tracked down an expert to give us a sense of what consumers can expect.
"Eventually, when we probably have a higher production of those goods here, like cars, for example, then the car prices will stabilize. But right now, in the short term, all prices are going to go up, and that's why the market is so nervous about this,” said MSU Denver Economics professor Dr. Kishore Kulkarni.
He said it depends on things like ramping up domestic production or the construction of new manufacturing plants.
"It's very hard to really predict calendar date," said Kilkarni.
It could be a year or two before prices level out, he added.
For now, auto dealers like Phil Long Dealerships are trying to create a buffer.
"I can just tell you, everybody's working their best to try to insulate the customers from a price increase because affordability is the number one challenge for automotive consumers right now," said Shaughnessy.
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