Allie, a Salt Lake City resident, faced a dilemma many car buyers can relate to: should she pull the trigger on purchasing a vehicle earlier than planned to avoid potential price hikes due to tariffs?
Originally, Allie and her husband had planned to buy a car in the spring of 2026. However, with concerns about tariffs driving up the cost of new vehicles, she began reconsidering that timeline.
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They were planning on spending around $35,000 on a used car, but were also considering buying a new one if they could find the right deal.
“We are wondering if we should move that purchase up and buy now because car prices might decrease because of the tariff.” Allie explained to The Ramsey Show co-hosts Jade Warshaw and Ken Coleman
Allie said with the media reporting that tariffs will potentially drive up the cost of vehicles, she wanted to know if buying now would be wiser than possibly paying more later.
The experts weigh in — patience over panic
The show’s financial experts quickly offered guidance.
Coleman’s first advice was clear: don’t act out of fear.
“We have no idea what the tariff situation is going to be,” he said.
“And by the way, it’s already too late. If you’re going to get a car, the costs will be affected by tariffs … we just don’t know what that’s going to look like.”
Coleman emphasized that while tariffs might impact the prices of new vehicles, they wouldn’t directly affect used car prices, which he says are more influenced by market demand.
On this point, Warshaw cautioned that while media headlines may push consumers toward fear-based decisions, it’s impossible to predict how the tariff situation will evolve.
"That media pressure is real,” Warshaw said. “ And then all the car commercials are going, ‘We are gonna stand by our payment. We’re not raising our payment.’ Everybody’s talking about it.”
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Buy now or stick to the plan?
Allie and her husband also had to consider where they would borrow money for the car purchase. They had $30,000 in a high-yield savings account that was earmarked for future vacations and sinking funds, but the couple was considering repurposing those funds for the car purchase.
However, the experts suggested that Allie wait for her husband’s stock options to vest next spring as initially planned.
The co-hosts were adamant about not letting fear dictate a large purchase like a car. They encouraged Allie to stick with her plan and advised her to buy the car when it made more financial sense.
“You don’t do this out of fear. You do it out of ‘Are we ready to buy the car today?’” Warshaw said. “If you think, ‘Hey, we don’t need it yet,’ then don’t do it.”
“Let these stocks vest regardless of what you do,” she added.
Both co-hosts noted that by waiting, Allie could have an opportunity to find a great deal.
“A year from now, when they want to buy. There’s gonna be some people who overextended themselves,” Coleman said,
“ I can promise you a year from now, there’s gonna be some people driving around with a car payment of $700 or more. We know this from the data. And they gotta unload it.”
Warshaw and Coleman emphasized the importance of patience and careful planning, advising Allie to avoid making a fear-driven purchase. Instead, it’s best to align her decision with her long-term financial goals.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
