What a Trump Victory Could Mean for Car Buyers and the Auto Industry

So... we had an election last week, and that means it's time for everyone's favorite game: speculating what the new administration might mean for various industries. In the case of the automotive world, that speculation matters more than you might think. Automakers and their suppliers make up the largest manufacturing sector in the U.S., accounting for a full 3% of our gross domestic product. That may not sound like a lot, but for a single industry, it’s a huge slice of the economic pie.

When the auto industry struggles, the entire economy feels it. That’s why they got a bailout during the not-so-great recession of 2008-2010. So when a new president comes into office, automakers, suppliers, and dealers all start paying close attention to what might be coming.

The CARS Rule Might Get Axed

One of the first things potentially on the chopping block? The Federal Trade Commission's CARS Rule (Combating Auto Retail Scams). This rule was designed to bring more honesty and transparency to car buying and leasing. It would:

• Ban bait-and-switch pricing tactics

• Require clear disclosure of the actual price of a vehicle

• Mandate informed consent before dealers can charge any add-ons

• Prohibit dealers from charging for worthless add-ons or inflated "market adjustments"

Sounds like common sense, right? But the rule hasn’t even taken effect yet. It was supposed to roll out in July 2024 but is currently tied up in litigation, contested by the National Automobile Dealers Association. If the CARS Rule is scrapped, it means business as usual: hidden fees, sketchy pricing tactics, and shady sales strategies will continue in many places.

Of course, protections vary by state. Some, like California and New York, already have laws in place to protect consumers. Others, like South Carolina (where I live), are more of a regulatory Wild West.

Whether the rule stays or goes, your best protection is knowledge. That’s why I created my online course to teach you how to navigate the system and avoid getting taken for a ride.

Electric Vehicles Could Lose Support

A second Trump term is widely expected to result in looser regulations around EV adoption. That might sound good for automakers who have been scrambling to meet aggressive production goals, often at the expense of quality control. With more flexibility, they could slow down and catch their breath.

But here’s the flip side: EV tax credits are probably going away. That $7,500 incentive that made EVs more affordable for many Americans? Consider it on the endangered species list. Since many EV buyers have depended on those incentives to make the leap, we’d likely see another slowdown in electric vehicle adoption.

If you're thinking about buying or leasing an EV, now might be the time to make your move.

That said, we may see some pro-EV policy stick around—if only because Elon Musk had a seat at the table. Tesla could benefit from policy changes that fast-track the rollout of their autonomous robo-taxis. National standards for self-driving cars may also become a reality, which could reduce the regulatory chaos from state to state.

The EV Charging Infrastructure

The Biden administration prioritized building out a national EV charging network through the Inflation Reduction Act. That investment has helped roll out more charging stations, especially across the interstate system, which is critical in a country that loves road trips.

It remains to be seen if a second Trump term would halt or slow that build-out, though Tesla's involvement in the charging infrastructure may allow development to continue under a different banner. Either way, public EV charging access could become more privatized and less consistent.

Tariffs and the Price of Everything

And then there are tariffs.

The Trump campaign has floated steep tariffs on Chinese imports—even higher than the ones already in place. And Biden continued many of the earlier tariffs while increasing some. Both administrations have shown a willingness to go toe-to-toe with China on trade.

But here’s what matters to you: tariffs are a tax paid by the importer, not the exporting country. So if an automaker in the U.S. is bringing in parts from China, those tariffs get added to the cost of production—and guess who ends up footing the bill? That’s right: the buyer.

Increased tariffs on Chinese batteries, chips, and other components raise the price of manufacturing cars. That means new cars cost more. And so do the parts used to maintain and repair your current vehicle. Which means higher maintenance costs, and potentially higher insurance premiums.

And don't forget—even legacy brands like BMW and Mercedes are sourcing more parts from China. GM is even looking to partner with a Chinese tech company for EV battery production (which they’d assemble in the U.S. to dodge the tariffs).

Bottom line: tariffs mean higher costs across the board, especially when the global supply chain already runs heavily through China.

What This Means for You

Will prices go up or down? Will EVs become more or less accessible? Will federal policies help or hurt you as a car owner or shopper?

The truth is, nobody knows exactly. But speculation is part of the business. Automakers, dealers, and suppliers are already gaming out every possibility so they can protect themselves—and so should you.

Whatever the political winds may bring, the strategy for buying a car doesn't change. You still need to do your homework. You still need to be vigilant. And you still need to be a savvy shopper.

That’s exactly why I created The No BS Guide to Buying a Car. My online course gives you the exact strategy and insider tips I use to buy cars for my clients, no matter what government regulations are in play or what tricks the dealers try to pull.

🎧 Want to hear more about how politics and policy changes impact your wallet at the dealership? Listen to the full episode of The Straight Shift podcast here, or wherever you get your shows.