Can you elaborate? Because the tax also applies on spare parts, do the car will cost 40% more to purchase (25% is the tax that the manufacturer has to pay, so in order to keep the same net profit margin they had to increase much more the MSRP) AND will cost 40% more to repair
The “import” may have been made in the US and the “local” brand built over there. Granted either likely had parts from anywhere other than where they were assembled. Tarrif hits it all - quality is very much to the model. Stellantis, Mitsubishi are reminders.
A car dealer, buys cars to sell, using cash supply that he expects to make 30% profit on (for example). Now that the cars suddenly require 25% more of his cash supply, he will still want to make the same percentage profit. So that car is going to cost you Original price+ 25% tariff +(30% of the 25% tariff).
TLDR The price of the car goes up MORE than just 25%. The dealer pays upfront, so he wants profit on however much he needs to pay. He’s not going to just charitably advance an extra 25%, which he probably borrows from an overdraft and has to pay fees/interest on, for free.
These numbers are hypothetical.
If the car costs 25% more on purchase, but costs 40% less in repairs, I’m gonna call that one a win 10 days out of 10.
Can you elaborate? Because the tax also applies on spare parts, do the car will cost 40% more to purchase (25% is the tax that the manufacturer has to pay, so in order to keep the same net profit margin they had to increase much more the MSRP) AND will cost 40% more to repair
American cars are way less reliable than imports, alwylays have been. It’s always cheaper to own an import because they need less repairs.
You and Trump have the same understanding.
The “import” may have been made in the US and the “local” brand built over there. Granted either likely had parts from anywhere other than where they were assembled. Tarrif hits it all - quality is very much to the model. Stellantis, Mitsubishi are reminders.
make logic out of what you said
A car dealer, buys cars to sell, using cash supply that he expects to make 30% profit on (for example). Now that the cars suddenly require 25% more of his cash supply, he will still want to make the same percentage profit. So that car is going to cost you Original price+ 25% tariff +(30% of the 25% tariff). TLDR The price of the car goes up MORE than just 25%. The dealer pays upfront, so he wants profit on however much he needs to pay. He’s not going to just charitably advance an extra 25%, which he probably borrows from an overdraft and has to pay fees/interest on, for free. These numbers are hypothetical.