‘It’s fear of the unknown’: Car buyers and dealers ride the tariff storm

Local car dealers are urging customers to purchase vehicles now before tariffs drive up prices. CTV London’s Sean Irvine explains.

In response to U.S. auto tariffs, some London and area new car dealerships are promoting Canadian-made vehicles.

At one dealership, a luxury SUV is wrapped in the flag to entice buyers.

Just down the road, Subaru of London is promoting the idea that its new cars and SUVs are exempt from any new tariffs. Cars assembled outside of North America were already tariffed at 6.1 per cent, and that remains in place.

“All of our models, except for two, are built in Japan,” said Joe Prossler, the general sales manager

However, like most automakers, Prossler is preparing for possible tariff-related price fluctuations on the two models made in the United States.

“We’re on almost a day-to-day call to see what’s changing and when it’s changing and how much it’s changing.”

In the meantime, the rush is on to buy. Prossler said business has boomed over the past month as customers here - and elsewhere - hope to avoid paying more.

For now, he has good news.

“We’re told that cars that are already on the lot are not impacted.”

Don Roth joined his wife, Gwen, as they picked up her new SUV Friday.

The pair had been considering waiting until the fall to make a purchase, but the threat of tariffs moved up their decision.

“We knew we were going to want to make a decision and move forward with a new purchase,” explained Don. “And so rather than just waiting to find out, we just thought, well, that moves the timeline up.”

Another couple told CTV News London they had considered a new ride months before tariffs were threatened and markets became volatile.

However, as the world economic and political environment changed, they opted to put money down sooner rather than later.

“It contributed to making the decision more quickly, perhaps than we would have,” said Michael Furmaniak

But as he and his wife got ready to drive away in their new vehicle, others wondered what they should do next amid a car market heavily impacted by decisions made in Washington.

“Customers are looking for updates. And, unfortunately, we don’t always have the answers that they’re looking for,” conceded Prossler. “It’s fear of the unknown, for sure. You know, dealers don’t know what’s going to happen and consumers don’t know what’s going to happen.”