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Home » Nationwide car sales grow but maybe not for much longer

Nationwide car sales grow but maybe not for much longer

EV-cars parked in a lot

Washington launched its instant rebate program for buying and leasing electric vehicles on Aug. 1. These are among the models on which rebates could apply.

Courtesy Washington Department of Commerce
March 7, 2025
TCAJOB Staff

The increased number of newly purchased vehicles with temporary plates you may have noticed around the Tri-Cities is more than a local phenomenon. 

Nationally, new light-vehicle sales in February reached a seasonally-adjusted annual rate of 16 million units, an increase of 2.1% compared to February 2024, according to the National Automotive Dealer Association. 

Sales of battery electric vehicles increased year over year through February, totaling nearly 185,922 units, an increase of 18.8% year over year. Conventional hybrids sales also were up significantly, totaling 274,189 units, an increase of 38.6%. Hybrids have consistently seen the highest sales and market share growth among alternative-fuel vehicles. 

But industry officials say affordability continues to be a challenge. 

J.D. Power reported the average monthly payment on a new-vehicle finance contract was $738 in February, an increase of $17 year over year and the highest on record for any February. And while President Donald Trump’s planned 25% tariffs on automotive imports from Canada and Mexico have been paused for one month, prices could increase by thousands of dollars per vehicle if they are implemented. 

“Should they go into effect, we expect that no vehicle sold in the U.S. will be immune from these tariffs, as even the most ‘American-made’ vehicles have a maximum 75% content originating in the U.S/Canada and vehicle components will be tariffed along with finished vehicles,” said Patrick Manzi, the association’s chief economist, in a release. 

And even if you haven’t bought a new car recently, those tariffs could still hit you in the pocketbook. The state’s Office of the Insurance Commissioner says new parts and materials for repairing vehicles following a collision also will go up in price. As a result, insurance companies will seek to increase premiums to cover that additional expense. 

According to the U.S. Bureau of Labor Statistics, car insurance increased an average of 11.8% in 2024. In Washington, rates increased an average of 17.5% in 2024. 

“Tariffs – taxes – are the last thing inflation-weary drivers want or need,” said Robert P. Hartwig, clinical associate professor and director of the Center for Risk and Uncertainty Management for the Darla Moore School of Business at the University of South Carolina, in a news release. “Presently, there is little relief in sight for motorists.” 

    Latest News Manufacturing Transportation
    KEYWORDS March 2025
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