Tariffs Are Rising - What Auto Dealers Need to Know

Tariffs Are Rising - What Auto Dealers Need to Know

Two men engaged in a handshake in front of a car, representing a successful car purchase.

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A proactive approach can protect your margins and keep your dealership running smoothly.

The global trade environment is changing quickly, and U.S. auto dealers are likely to feel the effects in the coming months. Recently announced tariffs on imported goods are expected to drive up the cost of a wide range of products β€” not just vehicles, but also the everyday materials and tools that keep dealerships running.

If you want to avoid the financial strain of rising prices, now is the time to take action β€” both by securing key supplies and by preparing your operations to weather the changes ahead.

🚨 Tariffs Are Raising Costs β€” What This Means for Auto Dealers

While headlines often focus on the impact of tariffs on cars and parts, many dealers may not realize that the ripple effects go much further. Supplies like signage, service materials, forms, and everyday office essentials are also affected, especially those sourced or manufactured overseas.

What to expect:

  • Higher supply costs on essentials like key tags, dealer forms, and promotional items
  • Longer lead times due to supply chain disruptions
  • Tighter margins as operating costs rise faster than vehicle pricing

πŸ›’ Secure Key Supplies Before Prices Rise

If you’ve been holding off on reordering dealership essentials, now’s the time to do it. Prices are likely to climb steadily over the coming weeks, and stocking up in advance can help you maintain your margins.

Popular items to lock in now:

πŸ“ˆ Smart Moves Beyond Stocking Up

A row of small cars parked neatly in a line on a car dealership lot.

Buying ahead is just one part of the strategy. There are also several non-purchasing actions you can take today to protect your dealership’s bottom line β€” and position yourself for growth, even as costs rise.

πŸ’» 1. Embrace Technology to Improve Efficiency

Successful dealerships don’t just rely on sales β€” they lean on smart systems to streamline their work. From digital inventory tools to CRM systems and DMS software, technology can help reduce paperwork, improve accuracy, and make everyday tasks easier for your team. Consider also improving your digital retailing experience: the easier it is for customers to browse, connect, and buy online, the stronger your position will be in a competitive market.

πŸ“£ 2. Strengthen Your Sales & Marketing Strategy

The more visible and customer-focused you are right now, the more resilient your business will be. Invest in sales training to help your team handle price conversations confidently. Update your marketing strategy to blend digital channels like PPC, email, and social media with traditional promotions on your lot. Dealers who maintain visibility and consistency β€” especially during uncertain times β€” are often the first to recover and grow when the market stabilizes.

πŸ“’ Boost Visibility While Competitors Pause

In times of uncertainty, many dealerships pull back on marketing β€” which can actually create a competitive advantage for those who stay active.

Promotional tools like Feather Flags , Windshield Banners, and Under-Hood Signs can help you drive traffic and stand out from the competition, especially when customers are watching their spending more carefully.

Staying visible now ensures you’re top-of-mind when buying decisions are made.

πŸ—‚οΈ Stay Organized, Stay Nimble

Operational efficiency is more important than ever. A well-organized dealership is faster, leaner, and more agile β€” which pays off when the unexpected happens.

Helpful tools for staying on track:

βœ… Take Action Now β€” And Stay Ahead

The tariffs are coming, and costs are already starting to rise. But with a combination of smart planning and strategic stocking, you can stay ahead of the curve β€” and even come out stronger on the other side.

Whether it’s tightening operations, investing in your team, or locking in supply prices, the moves you make today will shape your profitability tomorrow.

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