Apr. 3—A 25% tariff on all cars and parts imported to the United States went into effect Thursday. President Donald Trump said taxing foreign-made vehicles and parts is intended to boost the American auto-manufacturing industry. But it's likely to cause price hikes across the board, including for used vehicles and repairs.

Here are a few things to know while navigating the new era of America's car market:

Are all cars going to become more expensive Thursday?

No. Importers — whether they be car manufacturers or dealers — will have to pay 25% extra for anything they buy that goes through domestic ports Thursday and on.

But dealerships still have cars on their lots that reached American soil before the policy went into effect. There will be a one- to two-month long buffer period during which dealerships clear out that supply.

But by June, it's likely most new cars sold in Maine will have arrived after Thursday and, in turn, be more expensive.

Does the tariff apply to used cars, too?

No. But the used-car market won't be unscathed.

"If you have a 3-year-old Jeep Grand Cherokee and the new one goes up in price, the price of that older one will go up, as well," said Adam Lee, head of Maine's largest auto dealer, Lee Auto Malls.

And if new car sales go down because people can't afford to make a purchase, then there could be fewer car-trade-ins. With fewer used cars for sale, the market would become more competitive and expensive, too.

Does this mean I'll get a cheaper car if I buy from a domestic manufacturer?

Not necessarily. While there are American carmakers, these companies aren't using parts built in America, nor are they assembling all vehicles in America.

"You'll see it across the board," said Andrew Koocher, the general manager at Pape Chevrolet in South Portland.

Domestic companies like General Motor, Jeep and Ford do import their parts and sometimes assemble cars in foreign countries like Mexico.

"It doesn't make any difference where the company is from," Lee said. "All that matters is where the car was produced."

Will it be more expensive to get repairs and routine maintenance done on my car?

Probably. Even a 20-year-old car could require parts ordered from out of the country. In that event, your bill will be higher. But it depends on the kind of service needed.

"We are prepared for increases in what it costs to repair your vehicle or service your vehicle," Koocher said.

I'm looking to sell my used car in the next year. When is the best time to do that?

It depends. Koocher, at Pape Chevrolet, said that the older a car gets, with more miles and wear-and-tear, the more it will depreciate in value. He thinks now is the best time.

Lee, however, says to wait a few months since the used car market could likely get more competitive.

When is the right time to buy a new car? How about a used car?

As soon as possible. Dealership lots are still filled with those un-tariffed vehicles. The same goes for used cars, not yet impacted by the tighter market.

And Koocher said manufacturers like Chevy have locked in car pricing and rebates (such as a cash discount or financial incentive) for April 2025. But come May, that could change.

"There's a chance a lot of those programs — rebates, incentives, low rates — might change and go away if the tariffs stay in place," he said.

And Lee anticipates it will take one or two months for his dealerships to clear out the current stock.

"If you need a car, my advice is to go buy one now — whether it's from me or anybody else," he said.

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