Money MoveIf you are planning to buy a car in 2026, the clock is ticking. New tariffs on imported vehicles and auto parts are expected to add anywhere from $2,000 to $8,000 to the price of a new car, depending on the make and how much of it is built overseas.
This is not a hypothetical. The 25% tariff on imported vehicles that took effect in early 2025 has already started rippling through the supply chain. Even "American-made" vehicles use a significant percentage of foreign parts, which means the price pressure hits nearly every brand on the lot.
Who Gets Hit Hardest
Imported brands like Hyundai, Kia, and Volkswagen are the most exposed since they manufacture a larger share of their vehicles outside the U.S. But even domestic automakers like Ford and GM source engines, transmissions, and electronics from Mexico, Canada, and Asia.
According to Consumer Reports, shoppers should expect sticker prices to climb across the board in the coming months as manufacturers pass along higher production costs.
The average new car transaction price already sits near $49,000. Adding $3,000 to $5,000 on top of that puts a lot of buyers in a tough spot, especially when you factor in today's average auto loan rate hovering around 7%.
Smart Moves Before Prices Jump
Here is what you can do right now to protect your wallet:
Consider buying sooner rather than later. Vehicles already on dealer lots were built before the latest tariff round. That inventory is your best bet for pre-tariff pricing. Once it sells through, replacement stock will carry the higher costs.
Look at domestic-heavy models. Vehicles with a higher percentage of U.S. and Canadian content tend to be less affected. The NHTSA's American Automobile Labeling Act data shows exactly how much of each model is domestically produced. The NHTSA AALA list is publicly available.
Do not ignore certified pre-owned. CPO vehicles come with manufacturer-backed warranties and skip the tariff markup entirely. With new car prices climbing, CPO is becoming the smart money move for 2026.
Lock in financing now. If rates climb alongside prices, the total cost of ownership goes up on both ends. Getting pre-approved before shopping gives you leverage at the dealership.
Run the real numbers on what you already own. Sometimes the best car deal is the one you do not make. If your current vehicle is in good shape, keeping it another year or two while the market adjusts could save you thousands.
The Bigger Picture
Tariffs are not the only cost pressure on car owners right now. Insurance premiums climbed roughly 12% nationally in 2025 according to Bankrate, and repair costs continue to rise as vehicles get more complex.
The total cost of owning a car is going up, and it is going up fast. The buyers who come out ahead are the ones who plan ahead, compare aggressively, and avoid overpaying on any single line item.
Whether you are buying new, buying used, or holding onto what you have, the smartest thing you can do right now is know your numbers. What is your car actually worth? What should you be paying for insurance? What does your loan really cost you over time?
That is exactly what Sidekick helps with. We break down the full picture so you can stop guessing and start saving.