If you’re considering buying a Lincoln, it’s essential to understand how recent tariff policies may affect your buying decision. At the end of March, the U.S. government announced a 25% tariff on all imported passenger vehicles and key automotive parts. The auto tariffs impact and car prices impact has been and will continue to be strong. Today, your local Lincoln dealership in Bethesda, MD will explain these impacts so you can better understand how they affect you.
Understanding the Auto Tariffs Impact and Car Prices Impact from Your Lincoln Dealership in Bethesda, MD
Understanding Tariffs
Tariffs are taxes applied to goods imported into the country. Their purpose is to encourage domestic manufacturing and consumption, which can boost the economy. However, oftentimes, tariffs result in higher prices for consumers as the company responsible for the taxes typically passes the added costs onto consumers by raising the prices of their products.
Impact on Lincoln Pricing
The auto tariffs are expected to raise the price of many vehicles, including Lincoln. Lincoln imports its best-selling midsize SUV, the Nautilus, from China. Due to unique circumstances regarding China and the U.S., vehicles imported from China are subject to a 125% tariff. This is likely to significantly impact Nautilus pricing in the coming months.
Lincoln, as a luxury brand under Ford Motor Company, produces several models domestically, including the Navigator, Aviator, and Corsair. However, considering that vehicles contain thousands of parts, there are many that are imported from other countries. As these parts are subject to the tariffs, this means that even domestic models are likely to see their prices raised. Estimate suggest that consumers could see price hikes ranging from $5,000 to $10,000.
Availability and Supply Chain
If you’ve had your eye on a Nautilus for a while, you needn’t worry. Lincoln has indicated that they will continue to import the Nautilus, despite its substantial tariff, due to its strong sales performance in the U.S. Ford has emphasized its commitment to U.S.-based manufacturing, which indicates that domestically produced Lincolns are likely to continue to have strong availability.
Some companies are seeking alternative supply chains for material sourcing, manufacturing, and logistics. It is unclear whether Lincoln will change its supply chain strategies in the future but if they do, buyers should expect potential delays in production.
How to Navigate Tariffs
The tariff situation seems to be changing daily, leaving buyers confused and uncertain about how they should navigate them. If you’re considering buying a Lincoln, we recommend acting promptly. We have many vehicles in stock with pre-tariff pricing and have additional promotions such as employee pricing. Once these vehicles are sold, you are unlikely to have another opportunity to purchase a vehicle at their current price.
Tariffs have introduced a new layer of complexity to purchasing a Lincoln. Understanding how they work and how Lincoln is affected can help you make a more informed decision. To get started finding your pre-tariff Lincoln, stop by Koons Lincoln of Bethesda in Bethesda, MD.
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