The president and chief executive officer of Rick Case Automotive Rita Case breaks down the way in which the prices of the automotive industry will affect the Americans on “the countdown of the Claman”.
President Donald Trump Prices in the automotive industry are not only planned to increase prices for cars. These samples could also increase the cost of repairs, according to industry experts.
Since Trump imposed a price of 25% in April on all imported passenger vehicles, car experts feared that the cost of new vehicles across the industry will take a solid blow. The National Automobile Dealers Association has issued concerns this year, saying that “matching customers with vehicles they can afford” has already been “was a continuous challenge for new American car and truck dealers”.
However, people who currently have a car will face problems because vehicles on the road age. The average age of cars and light trucks in the United States reached a 12.6-year record last year, according to data published by S&P Global Mobility.
Todd Camper, leader in the secondary market practice at S&P Global Mobility, said that with the average age growth, more vehicles “are now entering the main range for the spare service”, which is generally six to 14 years. More than 110 million vehicles are “in this sweet spot,” said Campeau.
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The car parts carry over time, so the more a car is elderly, the more repairs you need to keep them well and effectively.
A mechanic works on a car. (Pia Bayer / Picture Alliance via Getty Images)
The administration attempts to stimulate national manufacturing and settled on prices as a fix. The administration also plans to impose a separate 25% rate on automotive parts from May 3. Initially, the documents in accordance with the American-mexico-Canada agreement will be exempt, although the Commerce Department should develop a plan to impose the price on non-American components. The agency should also establish a process to impose prices on other automotive parts by the end of June.
Key car parts such as motors, transmissions, electrical training parts and electrical components will be affected.
A mechanic and his tools (istock)
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“Brake pads and bumper and sensors batteries, many parts used to repair and maintain vehicles are imported,” said Jenni Newman, chief editor of Cars.com. “If these parts are affected by prices, suppliers should transmit the additional cost to repair workshops and concession service services.”
Not only would this increase repair invoices for consumers, but it could also cause longer waiting times if the parts become more difficult to obtain or if the inventory is reduced, said Newman.
Used cars for sale (Justin Sullivan / Getty Images)
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“For current cars owners, it is an alarm clock: the maintenance of your vehicle has become more important. Our advice is to be proactive,” added Newman.
Brian Moody, editor-in-chief of Autotrade, agreed, saying to Fox Business that it is important for consumers to realize that the same parts used to build new cars are the same which are used to repair cars on the road, car owners should therefore consider making an appointment today if they think they need a maintenance.
