CarEdge Insights
Car Buyer Survey Reveals How Drivers Are Navigating Tariffs in 2025
CarEdge, the best place to buy, sell, and own a car with confidence, recently surveyed 408 U.S. drivers to better understand how consumers are navigating the car market in 2025. The survey, conducted from May 16 to May 19, comes at a pivotal time. Following the implementation of U.S. auto tariffs on April 3, car prices, interest rates, and inventory levels have all been in flux. With uncertainty growing, CarEdge sought to answer a critical question: how are real drivers adapting their car buying behavior?
Survey participants represent a broad cross-section of car shoppers and owners, from those who’ve recently purchased to those holding off for the foreseeable future. The full survey is available at CarEdge.com. Below, we break down the most important findings from this May 2025 snapshot.
How Americans Are Approaching the Car Market in 2025
The survey responses paint a picture of a divided car market, shaped by mixed economic signals and widespread caution. Among all respondents, 16% reported purchasing a car after the April 3 tariff announcement, while another 12% said they had bought a vehicle shortly before the tariffs went into effect. A much larger share (52%) said they are still actively shopping for a car, while 20% said they have not purchased a vehicle in the past six months and do not plan to buy one in 2025.
Tariffs have clearly impacted perceptions. Interestingly, among those who bought their car before April 3, 38% acknowledged they made the purchase early specifically to avoid the risk of higher prices. Among those who purchased after April 3, 16% said they believe they paid more due to the tariffs, with the vast majority of post-tariff buyers (84%) saying they believe they did not pay more.
Looking ahead, half of respondents are still planning to buy a car before the end of 2025. Of those future buyers, about a third plan to purchase new, another third are shopping used, and the remaining 30% are still undecided.
When it comes to what’s keeping people on the sidelines, affordability challenges and a lack of compelling deals top the list.
These are the barriers to buying (as a percent of all respondents who have not purchased):
With these top-line insights in mind, we next explore specific groups within the survey to uncover how recent and future car buyers are thinking about today’s market.
Pre-Tariff Buyers – Beating the Clock
Survey respondents who purchased a car in the six months leading up to April 3 offer another layer of insight. Among these buyers, 61% purchased new and 39% purchased used.
What stands out most in this group is that more than a third (38%) said they intentionally bought their car early to avoid potential price hikes from tariffs. For the remaining 62%, tariffs didn’t factor into the timing of their purchase.
Income again played a role in how buyers approached the market. Among households earning $200K or more, just 22% said they made their purchase early in response to the looming tariffs. Nearly half (48%) of buyers earning between $100K and $199K did the same. In contrast, 39% of buyers earning under $100K said they bought early to avoid tariff-related price hikes.
This suggests that low- to middle-income consumers were more likely to act on policy changes and proactively adjust their buying timeline. Higher-income households, on the other hand, may not have been as concerned about the possible impact of tariffs on car prices this spring.
Post-Tariff Buyers – Adjusting Expectations
For respondents who bought a car after the April 3 tariff rollout, the data reveals a blend of resilience and skepticism. Among this group, 81% purchased a new vehicle, while 19% opted for a used one.
Despite the added costs associated with the new tariffs on imported vehicles, most post-April 3 buyers didn’t feel the sting. A strong majority—84%—said they don’t believe they paid more as a result of the tariffs. Still, 16% acknowledged they believe they did.
Among buyers who purchased after the April 3 tariff implementation, a different pattern emerged. Higher-income households were more likely to believe tariffs increased the price they paid. Specifically, 27% of households earning over $200,000 said they believed they paid more because of tariffs. In contrast, only 11% of households earning between $100,000 and $199,999 felt the same. Meanwhile, 17% of buyers with incomes under $100,000 said they believed tariffs had raised their purchase price.
These results suggest that while tariffs haven’t universally discouraged buyers, those with tighter budgets and those with a keen eye on policy changes are the most attuned to their potential impact.
Active Shoppers – Cautious and Calculated
Among those still planning to buy a car in 2025, the data reveals a thoughtful and strategic group of shoppers. Less than half (44%) of active shoppers expect to make their purchase within the next three months, while a majority (56%) plan to buy later this year.
When it comes to what they’re looking for, 54% say they’re in the market for a new car. About 19% are shopping for used vehicles, while just over a quarter are still unsure.
As for why these shoppers haven’t yet moved forward, deal quality remains the leading barrier. Respondents were asked to select all reasons why they have yet to purchase in 2025. 50% say they haven’t seen an offer worth acting on, while 30% are waiting for prices to come down. Another 21% say they haven’t found a car or truck they like. A smaller group is holding out for lower loan rates (18%), while tariffs were cited by just 11% of active shoppers.
One-fifth of active shoppers said that their decision to keep their current vehicle for longer was a factor in delaying their purchase.
Looking at the income distribution of active shoppers, the data continues to reflect a largely middle-income profile. The majority fall between $50K and $149K in household income, suggesting that many of these buyers are financially capable, but remain cautious in an uncertain economy.
Opting Out – Those Sitting on the Sidelines
Among drivers who have neither purchased a car in the past six months nor plan to buy one in 2025, a few clear themes emerge. This group is not driven by fear of rising costs or policy uncertainty, but rather by satisfaction with their current vehicle, and a lack of appealing options in today’s market.
The majority of these respondents (71%) say they’re sticking with their current vehicle longer, a sign that many Americans are adopting a “wait and see” approach to the market. Beyond that, 23% haven’t seen a deal worth moving on, while 9% say they haven’t found a car or truck they like. Price sensitivity remains a factor, with 20% waiting for prices to drop and 14% holding out for lower loan rates.
Concerns about tariffs are present, but not widespread. Among those on the sidelines right now, the reasons cited are roughly the same for all income segments. About one quarter say that they’re keeping their current vehicle for longer, while roughly 20% say they haven’t seen any deals worth acting on yet. The third most common reason for sitting out today’s car market is waiting for prices to come down. Only 7% cited tariffs as one of their reasons for not planning to buy a car in 2025.
A Market Shaped by Uncertainty
The 2025 CarEdge Consumer Survey shows that the American car market remains fractured and cautious in the wake of economic headwinds and new policy shifts like auto tariffs. While some shoppers are moving forward with confidence, many are hesitant, skeptical, or simply waiting for conditions to improve.
The overarching takeaway? The car market in 2025 is no longer defined by pent-up pandemic demand or rapid inflation. Instead, it is being shaped by deal quality, interest rates, and policy awareness. For automakers, dealers, and car buyers alike, understanding these shifting motivations is key to navigating what’s shaping up to be one of the most complex car buying environments in recent history.
About CarEdge
Founded in 2019 by father-and-son team Ray and Zach Shefska, CarEdge is a leading platform dedicated to empowering car shoppers with free expert advice, in-depth market insights, and tools to navigate every step of the car-buying journey. From researching vehicles to negotiating deals, CarEdge helps consumers save money, time, and hassle. Join the hundreds of thousands of happy consumers who have used CarEdge to buy their car with confidence. With trusted resources like the CarEdge Research Center, Vehicle Rankings and Reviews, and hundreds of guides on YouTube, CarEdge is redefining transparency and fairness in the automotive industry. Follow us on YouTube, TikTok, X, Facebook, and Instagram for actionable car-buying tips and market insights.
