It's been a buyer's market in 2025 for car shoppers, as original equipment manufacturers (OEMs) like Ford (F) have been offering incentives to get buyers through the door.
President Donald Trump's trade war is forcing buyers to race to the dealership to get the cars they want before prices inevitably rise due to 25% tariffs on auto imports.
“People are buying cars because they think tariffs are coming,” one Mazda dealer said.
Related: Popular Ford newcomer overtakes Jeep in a key area
U.S. companies like Ford are in an especially advantageous position because they (usually) import fewer vehicles than their foreign competitors.
To help push sales and take advantage of buyers rushing to dealerships to buy inventory before tariffs hit, Ford launched its “From America, For America” campaign to provide customers with employee pricing.
“It's really paid off for us in the last 60 days. You've seen a lot of the results in the market. Last month (May)…we actually posted a 14.7% share here in the U.S. That's up 1.9 points of share on a year-over-year basis. A lot of times in this industry we fight for tenths of share, and to have a 1.9% increase year over year was very strong,” said Ford Blue and Model e President Andrew Frick.
Image source: Ford
Ford has special military offers for July 4 shoppers
Ford has been actively offering incentives for months, but it's stepped them up in recent weeks.
Ford doubled its military discounts to $1,000 and expanded them to all veterans instead of just those with two years of separation. Ford's Expanded Military Recognition Exclusive Cash Reward program runs through the July 4th weekend and ends on Monday, July 7.
More on autos:
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- Ford CEO Jim Farley has a scary message about China EVs
- Jeep, Dodge parent Stellantis doubles down on the US
The offer is valid for active military, reservists, retirees, spouses, and family members within the same household. Most 2024 through 2026 model year Ford and Lincoln models are eligible.
The deal is not available for Mustang Dark HorseTM, Mustang GTD, F-150 Raptor, Ranger Raptor, Ford GT, and Bronco Raptor.
Veterans must register and verify their military status through ID.me or Ford's own website.
Bank of America data shows car buyers need the incentives dealers are offering
Concern over higher prices due to tariffs has shaken consumer confidence, and the reality is that American pocketbooks are already stretched thin.
Nearly half of American drivers cite car expenses as the reason they can't save any money, and the average American spends about 20% of their monthly income on auto loans, fuel, insurance, and maintenance.
Most financial experts cap the monthly income you should spend on a vehicle at 15%.
But according to a MarketWatch Guides survey, about 10% of drivers say they spend 30% of their monthly income on driving, while another 12% said they “found themselves living paycheck to paycheck due to the financial strain of their cars.”
Bank of America recently saw an increase in $2,000 a month auto bills among people making less than $50,000 a year and between $50,00 and $100,000. Meanwhile, that type of spending decreased among people making more than $100,000.
“Bank of America payments data shows that overall median car payments are already more than 30% higher than the 2019 average and have now outpaced both new and used car prices, possibly as there is a push towards more expensive cars,” analysts Taylor Bowley and David Tinsley wrote.
Related: Car buyers should shop these brands for the best tariff deal
