New AutoPacific Survey Reveals How Tariffs May Impact New Vehicle Buyers

The automotive industry is entering a time of significant change due to the enactment of tariffs that will affect vehicle pricing and production, sales volumes, and more. A new survey finds that consumers are in fact concerned about the effect of implemented tariffs on the cost of living and the economy, and many intend to make some changes to their future big purchase plans. The survey of nearly 2,000 U.S. residents ages 18 and older specifically sheds light into the impact of tariffs on vehicle purchase plans, revealing that 75% of respondents who said they plan to purchase a vehicle within the next year will change those plans in some way, whether it be choosing a cheaper vehicle or waiting until things are more stable, if vehicle prices rise.

When asked about planned major purchases within the next year, 80% of respondents said they plan some type of large financial commitment, with vacations being the most likely purchase (44%), followed by home renovations (34%), hobbies (33%) and a vehicle purchase (33%). Of those 33% who are planning a vehicle purchase, 59% intend to purchase a new vehicle, 27% plan used and 14% are currently unsure. The big question for the automotive industry: how might those plans change if vehicle prices rise due to tariffs?

“While rising vehicle prices are likely to have a negative effect on U.S. new vehicle sales, not everyone will be leaving the market,” says AutoPacific director of marketing and consumer insights, Deborah Grieb, “many still plan to make that purchase but have changed their expectations – some will simply pay more, some will choose something cheaper.”

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Source: AutoPacific Tariffs and Vehicles survey, March 2025

But the real concern is the potential of movement to the used car market and purchase delays, both resulting in reduced new vehicle sales. The study reveals that 20% of those intending to purchase a new vehicle will consider buying used instead of new and 23% may wait to purchase a vehicle until things are more stable.

“Consumers leaving the new vehicle market, even temporarily, would lead to devastating blows to the automotive industry, but there are options for consumers, automakers and finance companies that could keep new vehicle intenders in the market,” says Grieb.

According to Experian, the average term for new car loans is 68 months, yet 15% of new vehicle intenders say they may choose to finance for a longer term to keep their monthly payment down, and 16% may shift to leasing instead of buying if they can get a good deal. Even among those who said they will wait to purchase a vehicle until things are more stable, 20% are open to leasing instead of buying, 14% are open to financing for a longer term, and 27% may choose the same vehicle they planned, but with fewer features and options. It’s also notable that 16% of new vehicle intenders said they would buy a vehicle sooner than originally planned to avoid rising costs.

Despite the Threat of Tariffs, Many New Vehicle Intenders Are Willing to Pay More…but How Much More?

There are significant numbers of new vehicle intenders who simply expect to pay more for their vehicle than originally planned, or who will finance more than planned. For those new vehicle intenders who said they will pay more than originally planned, more than half (52%) say they’ll pay $3,000-$5,000 more. For those who will finance more than originally planned, 54% will pay less than $125 per month more, with the majority (20%) saying they’ll only pay between $100-$124 more per month.

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Source: AutoPacific Tariffs and Vehicles survey, March 2025

Political Leanings Don’t Impact Concerns About a Recession or Rising Costs of Everyday Goods

Republican and Democrat respondents alike say they are familiar with how tariffs work, 90% and 92% respectively, but Republican respondents are less likely to be concerned about rising costs having an impact on them personally than Democrat respondents. However, both respondent groups worry about rising costs of living and an economic recession being in their future, with the biggest concern being the higher price of everyday goods, like food, gas, etc. Republican respondents’ concerns tend to be less intense overall, being less likely to say “very concerned” to all presented scenarios and more likely to say “somewhat concerned.” Republican respondents are also less likely to change their vehicle purchase plans with 31% saying rising vehicle prices as a result of tariffs will not affect their vehicle purchase plans, compared to 21% of Democrat respondents.

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Source: AutoPacific Tariffs and Vehicles survey, March 2025

Older Consumers are the Least Concerned about Tariffs

Interestingly, the older consumer groups surveyed, those age 60 and older, as well as those who are retired, have the least concern about tariffs personally affecting them. As most older consumers have likely paid off their mortgage and possibly their vehicle loan, only 39% are concerned about paying their monthly mortgage or rent compared to 73% of respondents ages 18-29. Similarly, only 24% of respondents ages 70 and older are concerned about paying their monthly vehicle loan compared to 64% of respondents ages 18-29. However, the likelihood that older respondents are on a fixed income may contribute to their concerns about the rising cost of everyday goods and an economic recession; both concerns they have in common with the younger respondents.

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Source: AutoPacific Tariffs and Vehicles survey, March 2025

Consumer Familiarity is Key to Demand for Advanced Driver-Assistance Systems (ADAS)

AutoPacific’s Future Attribute Demand Study (FADS) measures consumer demand for 163 features, including 13 ADAS features such as Emergency Evasive Steering Assist and Unresponsive Driver Stop Assist. When looking at consumer demand for these features over the past few years, AutoPacific has noticed that demand has become quite stagnant, which begs the questions, why and what can automakers do to increase this demand? To answer these questions, AutoPacific reached out to over 500 current vehicle owners and asked about their familiarity and experience with various ADAS safety features, as well as their interest in having these features in their next new vehicle. As is the case with many of today’s popular infotainment and convenience features, awareness and first-hand experience using various ADAS safety technology was found to result in a greater interest rate amongst consumers.

In this new short survey fielded in February 2025, AutoPacific presented 19 different ADAS features and their definitions to current vehicle owners ages 18 and older to gauge their interest, familiarity, and perception of these advanced systems. While real-world usage may be limited, there is strong awareness and consequently strong demand for many of these more advanced ADAS features. Some premium ADAS features, like Automatic Lane Change Assist, are often reserved and found on more costly upscale vehicles, while the remaining features surveyed are readily available across the industry at all price points.

Demand for ADAS Features Dependent on Awareness Moreso than Experience

There’s a marked difference in consumer awareness of an ADAS feature and actual real-world usage. While this is especially true for certain ADAS features that are relatively new and less accessible due to their pricing or availability at time of purchase, a lack of real-world usage of a well-known ADAS feature can also be attributed to the possibility that the consumer simply hasn’t had a situation to experience the feature first-hand, even if their vehicle is equipped with it. Some ADAS features, like Automatic High-Beam Headlights and Adaptive Cruise Control with Active Lane Centering engage often throughout the course of a consumer’s drive, resulting in 62% and 57%, respectively, of respondents who have heard of the features saying they’ve also experienced them. Conversely, ADAS features that typically only intervene in the event of a required emergency maneuver, like Cyclist and Pedestrian Detection or Safe Vehicle Exit Assist have a much lower percentage of use, 23% and 11%, respectively. As such, in many cases demand for the feature correlates closely with awareness.

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A rather unique exception is Night Vision, a feature with moderate awareness (44%) and very low real-world usage (11%), yet strong interest amongst consumers with almost 60% of consumers wanting it on their next new vehicle. A helpful feature that’s been around for decades since pioneered by GM in the 1990s, today’s Night Vision systems are more accurate and advanced than ever before, some being able to recognize and alert a driver of possible objects, animals, or pedestrians in darkened conditions. These systems are scarce, however, and are just starting to trickle down to mainstream brands and vehicles, but that hasn’t slowed consumer interest based on the perceived benefit of improved visibility.

“Credit clever advertising both on social media or television and word of mouth, as many consumers know about these safeguarding features, even if they have yet to use the feature in the event of emergency,” says Robby DeGraff, Manager of Product and Consumer Insights, “Some of them are true lifesavers, and once one of these ADAS features activates, that’s bound to boost trust in the technology itself and quickly turn into a “must-have” for the driver.”

Younger Consumers Have Highest Awareness of ADAS Features but Not Necessarily the Highest Interest

Overall, consumers have the highest awareness of ADAS features that vehicles have been equipped with for many years, like Blind Spot Cameras (73%) and Rear Cross-Traffic Alert With Automatic Emergency Braking (63%). Awareness drops sharply for newer, more advanced ADAS features, like Unresponsive Driver Stop Assist (25%) or Emergency Evasive Steering Assist (34%), that have only recently started to trickle into today’s vehicles. Younger consumers under the age of 40, however, have higher awareness of all features surveyed, including the newest, and least-known features, compared to those 40 and older. Furthermore, the gap in awareness grows with age for several of these newer, more advanced ADAS features. For example, 89% of respondents between the ages of 18-39 say they’ve heard of Automatic Lane Change Assist compared to just 47% of those age 60 and older.

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Yet while younger consumers are more familiar with all surveyed ADAS features, that doesn’t translate into higher demand across the board for them when compared to older consumers.

“Historically, when looking at AutoPacific’s FADS data, demand for features that enhance visibility has been higher from older consumers than younger consumers,” says Deborah Grieb, AutoPacific director of marketing and consumer insights. “The same holds true here where demand is higher from respondents ages 40 and older for Night Vision, Blind Spot Cameras, and Rearward Automatic Emergency Braking – all features that assist the driver with their ability to easily see around them.”

Additionally, when looking at feature reception by age group, whether it be younger generations or those north of the age of 60 years old, there’s positive sentiment for several popular ADAS features. For example, 74% of those under the age of 40 and 78% of those over the age of 60 stated they liked using Adaptive Cruise Control with Active Lane Centering AND Stop and Go. Interestingly, compared to those under the age of 40, those consumers over the age of 60 were more likely to report that many of the ADAS features they used made them feel much safer behind the wheel.

Constant Nagging, Lack of Adjustment Ability Can Lead to Lower Satisfaction

Just because a consumer has heard of and/or actually used a particular ADAS feature before doesn’t necessarily guarantee retention and desirability for it down the road. This proved to be especially true with common ADAS features that closely track a driver’s behavior like Speed Limit Warning and Distracted or Drowsy Driver Monitoring. Both ranked relatively high in awareness (7th and 5th, respectively), as well as real-world usage; however, demand is consequently low (16th and 11th respectively). These two features also have the highest percent of dissatisfaction from users with 18% of those who have experienced Distracted or Drowsy Driver Monitoring and 17% of those who have experienced Speed Limit Warning saying they didn’t like the feature.

It's important to note that for the two aforementioned ADAS features, as well several ADAS features that ranked much higher in terms of demand, consumers have to be able to adjust or change the sensitivity of the feature and have the option to turn it on or off. 44% of those who have used Speed Limit Warning felt neutral about it and 17% didn’t like it, mostly due to annoying nagging reminders and beeping alerts. In addition to complaints about it not working properly, nearly half of those who didn’t like Distracted or Drowsy Driver Monitoring complain of not being able to adjust or change the sensitivity. Alternatively, when asked about feedback on Rearward Automatic Emergency Braking, one of the top wanted ADAS features, some of those who have used it voiced concerns about the braking action being too abrupt or harsh, and the sensing too sensitive.

“As more and more automakers fortify their lineups with expansive suites of standard ADAS features, it’s going to be of paramount importance that consumers have the flexibility to make adjustments that suit their preferences and comfort level,” says DeGraff.

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Using AutoPacific’s Data and Insights to Plan for Success in the Emerging Electric Three-Row SUV and Crossover Market

Source: Rivian

Even as the U.S. vehicle marketplace faces the threatening possibilities of steep tariffs on imported vehicles and the elimination of helpful federal tax credits, automakers will continue to expand their EV offerings. In order to remain competitive, there’s a key segment strongly desired amongst many consumers wanting to go all-in on electrification: three-row crossovers and SUVs. Data from AutoPacific’s 2024 Future Vehicle Planner, which surveyed over 14,000 consumers who intend to acquire a new vehicle within the next three years, revealed nearly half of all future three-row SUV/XSUV shoppers would consider purchasing one that’s specifically an EV and another 8% actually intend to do so – a high percentage considering the limited options currently available.

Electric Three-Row SUV/XSUV Segment Expected to Grow

With automakers spreading their mix of EVs across multiple segments, expect more three-row SUV/XSUV models in the coming years. AutoPacific’s North American Competitive Battleground, a continuously updated online service that tracks future product intel, shows significant growth in the number of three-row electric offerings in the coming years. As of December, consumers can pick from only seven electric three-row SUV/XSUV nameplates: the Volvo EX90, VinFast VF9, Tesla Model X, Rivian R1S, Mercedes-Benz EQS SUV and EQB SUV, and Kia’s EV9. Customer deliveries for a handful of other upcoming models, like Cadillac’s Escalade IQ, are also expected to commence by the end of 2024. Starting next year and beyond, more battery-powered three-row SUV/XSUVs are slated to arrive, both from mainstream and premium makes. 

Consumer data and insights from AutoPacific’s Future Vehicle Planner show that 59% of electric three-row SUV/XSUV intenders and considerers want to spend less than $50,000, indicating there are affordability barriers that need to be overcome as well as a need for more non-luxury electric three-row products. At the moment, the Kia EV9 and Mercedes-Benz EQB are the least expensive electric three-row SUVs/XSUVs with starting MSRPs starting in the $55,000 range. Clearly, the data indicate there is room in the market for more affordable three-row electric offerings.

According to AutoPacific’s most recent forecast of U.S. light vehicle sales, fully-electric SUVs/XSUVs are expected to more than double in total light vehicle market share from 2024 to 2029, from 5.8% in expected this year to over 13% in 2029, while three-row fully-electric SUV/XSUVs specifically are forecast to nearly quadruple from well under 100,000 sales in 2024 to around 400,000 sales in 2029. “All-electric three-row SUVs and crossovers are set to become one of the most important growth segments in the EV space,” says Ed Kim, President and Chief Analyst at AutoPacific. “There is a perfect storm of life stage needs and EV acceptance that will power consumer interest and sales in this rapidly emerging space.”

Who is the Electric Three-Row SUV/XSUV Buyer and What do they Want?

Data from AutoPacific’s Future Vehicle Planner reveals Millennials are the most likely generation to want to go fully electric, and they are also very likely in their family-raising years. The typical consumer who would consider buying an electric three-row SUV/XSUV is a married female Millennial parent living in a single-family home in the suburbs and driving less than 30 miles per day. More than half of all shoppers and considerers believe they can have home charging equipment installed relatively easy and cost effectively, while a quarter are aware of possible required extensive, expensive electrical upgrades.

Consumers interested in an electric three-row SUV/XSUV are eager for the most modern technology available (including ADAS) and more than half are willing to pay more for an environmentally-friendly vehicle, but not necessarily willing to make trade-offs for that ownership. These buyers are fans of long road trips and shuttle children around, but also rely on their vehicle for commuting. While the brand of vehicle may not be as important of a factor amongst these particular shoppers at time of purchase, the mix of desired features does matter.

Following a similar trend for other vehicle segments and powertrains, intenders and considerers of electric three-row SUV/XSUVs are interested the most in features that bring added comfort and convenience. More than half want wireless charging pads for front and rear passengers, followed by other comfort and conveniences like heated and ventilated/cooled front seats, a household 110v outlet, an integrated air compressor, and a refrigerated center console. Other helpful must-haves like a hands-free power liftgate, second-row captain’s chairs, and power-folding rear seats (both 2nd and 3rd row) are also desired by more than a third of these shoppers. Even 30% are interested in swiveling second-row captain’s chairs, a feature recently showcased on Hyundai’s new 2026 IONIQ 9 that will be offered globally but not for the U.S. market.

There is also strong demand for features and technology that are exclusively for EVs, primarily features that increase convenience, charging speed, and range. “Just like we’ve seen with the current crop of gas and hybridized three-row SUV/XSUVs, the competition is fiery fierce and this notion of brand loyalty isn’t as relevant when cross-shopping,” says Robby DeGraff, Manager of Product and Consumer Insights, “Oftentimes it really does come down to which vehicle has the hottest features and tech a consumer can get their hands on right now.” While EVs, regardless of bodystyle or seat count, can entice consumers with striking new innovative features, AutoPacific data shows it’s imperative they still be loaded with popular, common must-haves found on ICE vehicles that these new consumers may be exiting.

About AutoPacific

AutoPacific is a future-oriented automotive marketing research and product consulting firm providing clients with industry intelligence and sales forecasting. The firm, founded in 1986, also conducts extensive proprietary and syndicated research and consulting for auto manufacturers, distributors, marketers, and suppliers worldwide, including its highly recognized Future Attribute Demand Study (FADS), a part of the larger Future Vehicle Planner. The company is headquartered in Long Beach, California with affiliate offices in Michigan, Wisconsin, and the Carolinas. Additional information can be found at http://www.autopacific.com. 

Deborah Grieb

Director, Marketing & Consumer Insights
AutoPacific
deborah.grieb@autopacific.com

Younger Americans Most Open to Chinese-Brand Vehicles; Willing to Overlook Privacy Concerns

There are currently no Chinese vehicle brands for sale in the U.S., but what if there were? In a recent survey issued by AutoPacific, nearly half of respondents said they are familiar with Chinese vehicle brands and about 35% of respondents said they would consider (definitely or maybe) purchasing a new vehicle from a Chinese brand. The results are part of AutoPacific’s bi-monthly Fuel Price Impact Survey, issued to a proprietary panel of vehicle owners in the U.S. The survey yielded responses from nearly 800 respondents aged 18-80 who were asked a unique set of questions about Chinese-brand vehicles and privacy concerns. However, that overall purchase consideration doesn’t tell the whole story. When broken down by age, 76% of respondents under 40 said they would consider buying a vehicle from a Chinese brand. Consideration then declines significantly by age group with only about 26% of those 60 and older willing to consider one. “A surprising number of American consumers are familiar with Chinese car brands even though none are sold here currently. This is especially true among savvy Millennials and Gen Z, who would be the most likely to consider acquiring a vehicle from a Chinese brand” said Ed Kim, President and Chief Analyst at AutoPacific.

Concerns About Privacy are High Regardless of Age Range

Overall, 44% of respondents said they would be very concerned about their privacy if Chinese-brand vehicles were sold in the U.S., and another 34% would be somewhat concerned. Even younger respondents, those under age 40, have concerns about privacy, with 73% saying they would be concerned about their privacy. However, despite strong concern among the under 40 age group, purchase consideration remains high. “Privacy concerns about Chinese-brand vehicles are likely to eventually subside given that most of the connected smartphones, smart watches, laptops, connected home devices we are comfortable using every day are in fact manufactured in China,” explained Kim.

Respondents of all ages were similarly concerned about potential national security risks if Chinese automakers were to sell their vehicles in the U.S. (68% to 82% depending on age group), and regardless of manufacturing location of the Chinese-branded vehicle: China, U.S., or other countries including Mexico.   

The Biggest Game-Changer for Consideration is Vehicles Built on this Side of the Globe

North American vehicle assembly is becoming more of an imperative “must” among automakers with EVs in order to meet eligibility requirements for mainstream vehicle shoppers to take advantage of federal tax credits for electric vehicle purchases. Could U.S. assembly of Chinese-brand vehicles also be a way to bolster consumer consideration? 16% of all respondents and 39% of those under age 40 said that knowing a Chinese-brand vehicle was built in the U.S. would increase their purchase consideration. Even 12% of respondents aged 60 and older, the least likely to consider a Chinese-brand vehicle, stated they’d be more open to one.

Heading south, a handful of Chinese automakers are already selling and will soon build lower-cost vehicles in Mexico for the Mexico market. Under current USMCA free trade rules, such vehicles could potentially be eligible for the full tax credit if they are sold in the U.S., as well as avoid the just-announced 100% tariff announced by the Biden Administration on Chinese-built vehicles.

When gauging consideration for a Chinese-brand vehicle if it were assembled in Mexico and then sold here in the U.S., about 37% overall would definitely or maybe consider a Chinese-brand vehicle made in Mexico, with that jumping to 73% among those under 40. Only about 29% of those 60 or older would consider a Chinese-brand vehicle built in Mexico.

EVs from Chinese Brands Could Solve Many of the Roadblocks Holding Up U.S. Buyers

It’s no secret Chinese brands are building some of the most innovative new EVs with striking technology, cutting-edge software, hyper-fast charging speeds, and fun features desired by younger buyers, and doing so at price points that significantly undercut what EVs from American, Japanese, Korean, and European brands currently sell for in the U.S. market. AutoPacific research has shown a main reason many Americans are hesitant towards EVs is purchase price, and Chinese-brand EVs could potentially offer appealing EV products that could generate excitement for EVs at much more affordable price points.

Despite the punishing new 100% tariff on Chinese-built automobiles, it is likely only a matter of time before they arrive on these shores – just as Japanese automakers did decades ago despite efforts to limit their presence here. “Younger generations of shoppers are clearly aware of the enticing products Chinese automakers are cooking up overseas,” said Robby DeGraff, AutoPacific’s Manager of Product and Consumer Insights. “It’s only a matter of “when” they’ll be able to get their hands on them.”

About AutoPacific

AutoPacific is a future-oriented automotive marketing research and product consulting firm providing clients with industry intelligence and sales forecasting. The firm, founded in 1986, also conducts extensive proprietary and syndicated research and consulting for auto manufacturers, distributors, marketers, and suppliers worldwide, including its highly recognized Future Attribute Demand Study (FADS). The company is headquartered in Long Beach, California with affiliate offices in Michigan, Wisconsin, and the Carolinas. Additional information can be found at http://www.autopacific.com. 

Contact(s): Ed Kim, Deborah Grieb

Consumer Demand for In-Vehicle Marketplace Capabilities is Growing

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With automakers prioritizing connectivity and exploring new ways to generate revenue after the point of sale, consumers are becoming more interested in the ability to purchase items or services directly from a vehicle’s center infotainment screen. This feature isn’t necessarily “new.” Over the past decade, automakers have tried testing the waters with in-vehicle marketplaces but to the reception of little actual interest among consumers. However, recent breakthroughs in screen sizes and intuitive software with over-the-air updates, and a booming e-commerce scene have prompted automakers to give this feature another go. AutoPacific research has seen demand for the ability to purchase products, technologies, and vehicle upgrades directly from a center infotainment screen grow by 8% pts YoY. We predict that figure to continue to rise.

18% of all new vehicle intenders, and 29% of EV intenders want to use their touchscreen for transactions

When surveying new vehicle intenders, 18% of those who plan to buy a new vehicle within the next three years want the ability to purchase products, technologies, and vehicle upgrades directly from a center infotainment screen. Past research has shown younger consumers are generally more comfortable and open to connected technology in their vehicles, as well as electrification. That’s expectedly the case here, with demand peaking among those ages 30-49 before dropping sharply.

Befitting, intenders of EVs who likely anticipate spending time waiting for their vehicle to charge, want this feature the most and considerably more so than ICE intenders (+16% pts). Automakers with EVs in their lineup could benefit by providing consumers in-vehicle marketplace capabilities, since these EV intenders frequently use a vehicle’s center infotainment screen for certain activities while parked, including streaming video content, playing games, partaking in video conferencing, and browsing the internet.

Regardless of powertrain or segment, this feature could become a must-have among families, as demand was more than twice that of households without any children. From placing food orders while waiting in the school pickup line to purchasing heated rear seats while on a winter road trip, obtaining products and services conveniently through the center infotainment screen can be a reprieve for busy parents. Relevant products, services, and upgrades catered specifically to families’ needs should be readily available via an in-vehicle marketplace.

Enhancing the vehicle and ownership experience over time

Beyond common goods and services, certain features and technologies that weren’t initially offered or added to a vehicle at time of purchase can be downloaded later through an in-vehicle marketplace. These can include ADAS features, comfort amenities, and even performance-focused treats like quicker acceleration and extra range for EVs. “This opens the door for manufacturers to let an owner easily enhance and better their vehicle over time,” says Robby DeGraff, Manager of Product and Consumer Insights at AutoPacific. “Maybe you didn’t think you’d need a hands-free highway driving assist when you first drove your vehicle off the lot…but now you suddenly do because you’re road-tripping a lot. A few minutes and taps on the center touchscreen, and you’ve just upgraded your vehicle without ever stepping foot in a dealership.”

Concerns and considerations to ensure seamless transactions

Earlier attempts at in-vehicle marketplaces were flawed by complicated on-screen steps, lagging connections and syncing of an owner’s payment methods, as well as a relatively small number of participating vendors. In order to ensure best practice for a consumer to purchase products, technologies, and vehicle upgrades directly from a center infotainment screen, the process must be as quick, easy, and straightforward as it would be to do so using a mobile device. Any interruption, glitches, or difficulty during an on-screen transaction would likely see the consumer immediately resorting to completing the transaction on their smartphone.

Furthermore, privacy may be a real concern for some consumers, even those open to having connected technology in their vehicle. 66% of all respondents, and 70% of those who want the ability to securely purchase products, technologies and upgrades from their vehicle’s center infotainment screen say they are concerned about their privacy due to use of various technologies. Transparency, a way to opt out of a transaction if desired, and of course security for all stored payment methods need to be guaranteed by the automaker.