The new tariffs are shaking up the Canadian automotive market, and if you’re shopping for a used car, you’ve probably noticed it’s getting more challenging. Here’s what’s happening and how you can prepare.
What’s the Deal with These New Tariffs?
When the United States imposed a 25% tariff on Canadian goods, Canada retaliated by imposing 25% tariffs of its own on American automobiles that violated the Canada-United States-Mexico Agreement (CUSMA). This causes higher prices and supply chain headaches for cars imported from the U.S., which is a major source of used vehicles for Canada.
If a car doesn’t meet CUSMA’s rule of having at least 75% North American content, you’re looking at even steeper costs.
Why Are Used Car Prices Going Up?
Experts estimate that depending on the car and market conditions, used car prices in Canada will increase by $1,000 to $8,000 CAD as a result of these tariffs. Supply chain problems also make it more difficult to locate cars and the growing cost of new cars is pushing more people into the used car market.
So more demand + less supply = higher prices.
The Importance of Pre-Purchase Inspections
Making a wise purchase is more crucial than ever at these high prices. A pre-buy inspection can be extremely helpful in this situation. It helps make sure you’re not spending a lot of money on a car that has unreported issues.
We at Greasemonkey Inspectors offer comprehensive automotive inspections, including under-the-hood checks, road tests, and comprehensive reports.
Also read our blog on tips for buying a used vehicle
New Tariffs | What Can You Do?
It’s difficult to buy a used car in Canada right now, but it is possible. Do your research and find cars that aren’t affected by tariffs before you buy. Make sure to also have the car inspected by reputable companies like Greasemonkey Inspectors. That way you can get your money’s worth- even under the effects of the new tariffs.