As some automakers like Toyota openly announce price increases on their new models, others are employing subtler tactics to boost costs without changing the advertised sticker price. According to a Bloomberg report, several manufacturers have quietly reduced rebates and cut back on low-interest financing deals, effectively raising the monthly payments for consumers by hundreds of dollars.
Incentives that once slashed about 10 percent off the price of a new car have dropped to roughly 6.7 percent, based on data from the Kelley Blue Book car buying guide. Meanwhile, some dealerships are increasing delivery fees by as much as $400, according to Edmunds.com.
These “stealth” price hikes allow automakers to pass on the burden of tariffs and rising costs without alarming buyers with a significant upfront sticker price increase. As Ford dealer Morris Smith III told Bloomberg, “On the consumer side, they’re seeing several thousand dollars of actual-experience price increase, whereas the factory is saying, ‘No man, we didn’t raise prices at all.’ Stealth is a good word for it.”
Such discreet price adjustments also help companies avoid political backlash. Earlier this year, President Trump criticized Walmart for raising prices in response to tariffs, accusing the retailer of unfairly passing costs onto consumers despite its strong profits. He posted on his social media platform Truth Social, urging companies to “eat the tariffs” instead of charging customers.
In addition to these indirect increases, the average sale price of a new car rose 2.5 percent in April compared to the previous month. Subaru announced that starting this month, new vehicle prices would increase by between $750 and $2,055 due to “current market conditions.” The company stated these adjustments were intended to offset rising costs while maintaining value for customers.
Ford has also implemented price hikes linked to tariffs, with DailyMail.com’s analysis estimating the increase adds roughly $480 to the cost of each new vehicle. General Motors projects annual tariff-related expenses between $4 billion and $5 billion if current tariffs remain in place.
As the industry continues to absorb tariff pressures and supply chain challenges, consumers should prepare for ongoing cost increases—some more visible than others.
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