Top Tips for Buying a Car in Canada’s New Tariff Reality
As we navigate through 2025, many Canadian car buyers question how the recent shift in tariffs might affect car prices. From rising vehicle costs to changes in trade dynamics, it's no surprise that shopping for a new or used car has become a bit more confusing. If you’re feeling overwhelmed or uncertain, you're not alone. This blog is designed to help you make smarter, more informed decisions when buying a car in Canada’s new tariff reality—without getting lost in the trade talk.
Let’s break down how tariffs impact car prices, explore the pros and cons of new versus used vehicles in this environment, and give you practical tips to guide your car-buying journey.
New vs. Used: What Makes More Sense Right Now?
The current global tariff landscape clearly impacts car prices. Many car buyers ask: Should I buy a new vehicle, or is it better to go for a used one? Both options have advantages and challenges in the current market.
Buying New: The Tariff Impact and Benefits
The new tariffs on vehicles and parts may affect new cars, especially imported ones.
Colin Mang, an economics assistant professor at McMaster University, explained to CBC that the U.S. tariffs and Canada's response will influence the increase in car prices, which could rise by anywhere from $1,000 to $8,000 CAD.
"What we're going to see is prices start to increase in the United States, and that's going to have spillover effects here in Canada as well, because the prices will track each other," Mang said.
This means you could see higher prices at the dealership. However, the upside is that you get the latest technology, a full warranty, and the peace of mind of driving a new car straight off the lot. Plus, with a new car, you’re often eligible for additional incentives from manufacturers or dealers that may help offset some of the price increases.
Pros of Buying New:
- Full warranty and the latest features
- Lower repair and maintenance costs in the first few years
- More financing options and incentives available
Cons of Buying New:
- Higher initial cost due to tariffs and demand
- Depreciates faster than used vehicles
Buying Used: The Tariff-Free Option, But With Challenges
Used cars, on the other hand, generally avoid the added tariff costs. This makes them a more affordable option up front. However, there’s a catch—used vehicles are currently in high demand, which can drive up their prices. Additionally, finding a well-maintained used car with a clean history can take more time and effort.
Pros of Buying Used:
- Lower initial cost and better value for your money
- Avoids tariff impacts
- Slower depreciation
Cons of Buying Used:
- Higher demand means higher prices
- Limited warranty or no warranty on older models
- Potentially higher maintenance costs
Look Local: Canadian-Built Cars That Dodge the Tariff Drama
One way to avoid some of the tariff-related price increases is to purchase Canadian-built vehicles. Cars manufactured in Canada often don’t face the same tariff challenges as imported models, which can help keep their prices more competitive. Additionally, choosing local options supports Canadian manufacturers and helps boost the national economy.
Top Canadian-Made Cars to Consider:
- Honda Civic (Ontario)
- Toyota Corolla (Ontario)
- Ford F-150 (Ontario)
- Chevrolet Equinox (Ontario)
These vehicles are tariff-friendly and known for reliability, fuel efficiency, and long-lasting value.
Smart Tips for Car Buying in a Tariff-Driven Market
To help you navigate the complexities of buying a car with tariffs in the mix, here are some smart tips to make your car-buying process easier:
- Know Your Budget: Given the impact tariffs have on car prices, it’s important to assess your budget before making any decisions. Use Go Auto’s Payment Calculator to get an accurate picture of your monthly payments, and make sure your budget aligns with your financial goals.
- Check Your Trade-In Value: If you have a car to trade in, make sure you know its value before heading to the dealership. Go Auto’s Vehicle Value Estimator lets you estimate what your current car is worth, helping you plan your next move.
- Consider Used Inventory: With prices on new vehicles on the rise due to tariffs, shopping for a used car can offer significant savings. Go Auto’s Used Inventory is full of well-maintained vehicles at competitive prices.
- Stay Flexible: While it’s tempting to go for the latest model, sometimes a slightly older model might offer the features you need without the tariff-driven price hike. Use Go Auto’s New Inventory tool to see a wide range of options and find the best fit for your needs.
- Shop Smart with Go Auto’s Sell/Trade Tool: Whether you're selling or trading, Go Auto’s Sell/Trade Tool can help you get your vehicle's value and the right deals quickly.
In either case, Go Auto’s inventory tools are here to help you navigate these choices. Explore both used and new cars to make the best decision for your budget and lifestyle.
How Go Auto Can Help
Buying a car in today’s tariff-influenced market doesn’t have to be overwhelming. By understanding how tariffs affect prices and knowing where your vehicle is made, you can make a more informed decision. Remember, whether you’re considering a new or used vehicle, Go Auto has the tools to help you every step of the way. From estimating your payments to finding the best deals, we’re here to help you shop smarter.
Ready to Start Your Car Search?
- Shop used vehicles today to see the latest deals on used vehicles.
- Check our new inventory for the newest models.
- Estimate your payments with our easy-to-use payment calculator.
- Get a trade-in value for your current vehicle.
- Sell your car or get a quote with Go Auto’s Sell/Trade Tool.
In a world of changing tariffs, Go Auto is here to help you buy with confidence and find great value no matter what the market looks like.
