The Best Cars and SUVs to Buy in Tight Times: Tariffs, Rising Inflation, Uncertainty

This is a wait-and-see situation even though some tariffs are active now. While it may seem like politicians are playing chicken with our household budgets, tariffs are also a negotiating tactic and can change in an instant. A few things to keep in mind:

• A car on a dealer’s lot was already purchased by the dealer and is not subject to tariffs; this goes for 2024 models still for sale
• A car you’ve ordered has a contracted price that the car maker and dealer are obligated to; a purchase order is a binding contract
• Tariffs may not impact the entire price of the car, but rather, only certain components, so some cars may not have price increases due to tariffs
• Just because a car is made in the US does not mean it won’t have tariffs; the tariff is on the parts, not the car as a whole
• Most of the organizations that track the origin of car parts lump the US and Canada together so extracting exact details on which components should be tariffed will be sticky business
• For now cars wholly made in the US, Korea and Europe are unaffected but that may change; the US has global tariffs targeted for April 1, 2025
• Last, there may be exclusions or exceptions to tariffs on cars, or on certain cars, so pay attention to the news before starting a new car purchase

The best cars and SUVs to shop for if tariffs cause price increases? Those mostly made in Korea or Japan, including many Kia and Hyundai models, Toyota, Lexus and other models built in Japan or assembled in the US with Japanese parts, and European models built in Europe and the US, including VW, Mercedes-Benz and BMW. Keep in mind that not all cars from a carmaker are made in the same place so just because one model faces a tariff, others in the brand family may not. And all that may change in an instant, or in a month when the next round of tariffs are scheduled to become effective.

Read: New Car Tariffs?!? Should I Freak Out? Keep Your Cool. Here’s the Need-to-Know

If we’ve learned nothing else in the last couple of decades, we’ve learned that recession can pop up fast and hit hard. Always be prepared by standing on solid financial footing. Before starting a car purchase, thoroughly look at your credit score and clean it up if you can, understand how much your budget can comfortably absorb and look at the investment value of a new car: its resale value and cost of ownership.

Some of the best cars and SUVs are recession-proof and include Toyota CorollaCross, Subaru Outback, Honda Civic and Mazda CX-5.

There are almost always good lease deals on the market, not as a function of the market but as a function of supply and demand. A lease is a chance to drive a brand new car for a lower-than-purchase monthly payment for two or three years, then simply give it back at the end. Here are the caveats:

• Leases build no equity, so you’re simply renting the car
• Lease downpayment requirements can be hefty
• Leases are typically on entry-level models with smaller engines and fewer features
• Often manufacturers may offer good lease deals on oversupply just to keep the market moving. In the event of a recession or tariffs, there may be good deals, even on the best cars and SUVs

If you decide to lease, make sure that overall it makes sense for your particular circumstances. Best cars and SUVs to look for leases on? Our picks include Chevrolet Equinox, Mazda CX-30, Subaru Outback and Toyota Prius and any electric car, which pose particularly good values right now.

It’s the inevitable rule of supply/demand/cheaper supply: when there’s price pressure on new cars, used cars suddenly become more expensive. That’s because buyers want the cheapest option and sellers see that right away. Also, sellers don’t have any obligation to keep prices at a certain level, so prices fluctuate according to what people will pay.

Buying used can offer some good advantages, even in a hot market; a used car will depreciate less, may still have some of the original manufacturer’s warranty and can represent a good value over a new car.

Best cars and SUVs to buy used? Honda Pilot, VW Atlas, Toyota Camry, GMC Yukon, Ford Mustang.

If you just can’t stomach the idea of buying a new car, it’s probably a good time to take a thorough look at your current car and ensure its maintenance is up to date. Start with the obvious—tires, windshield wipers, an oil change and fluid flush. Then look at your owners manual for upcoming recommended services and schedule those. Last, ask your mechanic to give your car a thorough inspection to look for any potential problems.

This might also a good time to renew your AAA membership or add tow and rental coverage to your insurance policy.

Here’s how to know which maintenance items are DIY and which need a mechanic‘s attention.

And here’s a great place to find a new mechanic if you need one.

If you leased a car several years ago (and you’re happy with it, it’s been reliable and it still suits your needs), this is a good time to pull out your paperwork and see what your buyout price is. This is what the carmaker estimated the car to be worth at the end of the lease.

Now, check KBB.com or another used car valuation site to find out what your car would cost were you to buy it used. If the difference is in your favor, that is, prices are higher than your buyout price, buying the car is probably a good idea. In some years, especially when used car prices increase, lease buyouts present a great way to control your costs.

Read: Is Your Car Lease Up? Don’t Lease Another Car. Buy The One You’re Leasing Now

We are still seeing incentives like 0% financing and low interest rates on certain cars, cash back and low lease payments. Shop the dealers in your area, look for 2024 models still on dealers lots or shop the car you want across the country, but be prepared to have it shipped, which can typically cost $1,000 or more. With some tariffs active and others on the horizon, you may find car dealers eager to sell you a car before sooner rather than later.

Some of the best cars and SUVs with current incentives include the Chrysler Pacifica, Hyundai Tucson, Jeep Gladiator, VW Tiguan and for those who need a sweet treat, the Mazda Miata.

Just because the market, the economy and global politics are in upheaval doesn’t mean you have to be. Take a breath, do your homework and find the right solution to your next-car needs.