Americans Expect Auto Prices to Jump Nearly 15%, Dampening Buyer Interest, New HarrisX-Allison Worldwide Poll Finds

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04/10/2025 - 06:05 AM

WASHINGTON--(BUSINESS WIRE)-- Americans are preparing for a surge in auto prices — and some are already holding off on buying because of it. According to new polling from HarrisX and Allison Worldwide, U.S. consumers now anticipate vehicle prices will rise by an average of 14.4% over the next year, a steep increase that is showing early signs of chilling consumer demand.

The nationally representative survey with more than 1,750 American adults reveals that 17% say they are “very likely” to buy a vehicle in the next 12 months — down from 21% in February. Meanwhile, the share of consumers who are “very unlikely” to purchase has jumped from 28% to 41%.

A majority of Americans (56%) now believe it is a bad time to buy a car, up from 46% less than two months ago. Fifty-three percent also expect auto loan interest rates to rise over the next year while just 14% think the rates will decrease.

“These numbers paint a clear picture: price expectations could at least temporarily freeze the U.S. auto market,” said Dritan Nesho, Global CEO of HarrisX. “When consumers expect vehicles to cost nearly 15% more in the near future — on top of already high interest rates — some might make the choice to wait.”

U.S. Automakers Not Immune to Lower Consumer Interest

In addition to the overall consumer sentiment and pricing expectations, the HarrisX-Allison Worldwide poll tracked consumer sentiment toward vehicles made in various countries, and the data paints a worsening picture for both foreign and U.S. automakers.

Vehicles produced by U.S. automakers remain the most preferred, with 71% of consumers saying they’re likely to buy an American-made brand — though that’s down from 80% in February. Openness to buying Japanese auto brands dropped from 59% to 47%, German from 47% to 37%, and Korean from 39% to 32% over the same period.

“Consumers are clearly feeling the pinch of tariff uncertainty and inflation,” said Rebecca Lindland, Managing Director of Mobility Advisory Service at Allison Worldwide. “The drop in buyer interest, including for American-made vehicles, shows no automaker is immune to the ripple effects of these economic pressures. Shoppers aren’t just delaying purchases; they are rethinking them entirely.”

Americans Are Firmly Sticking with Gas Vehicles

Sixty-two percent of U.S. consumers say they are most likely to buy a gas or diesel-powered vehicle (63% in February). Just 15% would prefer a non-plug-in hybrid (down from 17% in February), followed by 9% choosing an electric vehicle (8% in February) and 7% a plug-in hybrid (8% in February).

“Cost, concerns about EV infrastructure, and broader economic uncertainty are keeping consumers anchored to the traditional mobility choices they know best — with preference for EVs and plug-in hybrids stuck in the single digits,” added Rebecca Lindland.

General openness to purchasing hybrid and electric vehicles remains significantly below that for gas-powered vehicles:

Gas/diesel: 80% open to buying
Hybrid (non-plug-in): 45%
Plug-in hybrid: 35%
Electric (battery): 32%

Broader Economic Signs

The auto industry, according to a recent report, accounts for nearly 5% of U.S. GDP and employs 10 million Americans. With demand potentially cooling due to a mix of price expectations and high financing costs, even a temporary U.S. auto market downturn could extend beyond showrooms and into the broader economy.

“Several key questions emerge from this data,” said Dritan Nesho. “Will automakers absorb the cost of tariffs to stay competitive with American consumers? And if people are pulling back from major purchases like cars, what does that say about broader economic confidence? The road ahead for the auto industry — and the U.S. economy as a whole — is increasingly uncertain.”

Study Methodology
The study was conducted online across the United States April 4-6, 2025 with 1,762 U.S. adults by HarrisX, in coordination with Allison Worldwide. The sampling margin of error of this poll is +/-2.3 percentage points. The results reflect a nationally representative sample of U.S adults. The survey sample was weighted for age, gender, region, race/ethnicity, income, and region where necessary to align it with the actual proportions in the population. Respondents for the study were recruited through opt-in, web-panel recruitment sampling. Recruitment occurs through a broad variety of professional, validated respondent panels to expand the sampling frame as wide as possible and minimize the impact of any given panel on recruiting methods.

About HarrisX
HarrisX, a Stagwell company, is a leading global market research and data analytics company that conducts multi-method consumer and voter research across the U.S. and over 40 countries. With offices in the United States, Canada, the United Kingdom and Australia, HarrisX advises Fortune 100 companies, public policy institutions, global leaders, NGOs, and philanthropic organizations. According to The Washington Post and American Research Group, HarrisX was the most accurate pollster of the 2020 U.S. presidential election. Learn more at www.harrisx.com.

About Allison Worldwide
Allison is a global integrated marketing and communications consultancy dedicated to driving growth, innovation, and positive change for clients, colleagues, and communities. With a diverse range of expertise and a forward-looking mindset, Allison delivers game-changing results that make a lasting impact. Allison is owned by Stagwell (NASDAQ: STGW), one of the fastest growing and most influential marketing and communications networks in the world. Agency partners leverage Stagwell's technology, data analytics, insights and strategic consulting solutions to drive measurable results and optimize return on marketing investment for more than 1,700 clients worldwide. Learn more at www.allisonworldwide.com.

About Stagwell
Stagwell is the challenger holding company built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 10,000+ specialists in 30+ countries are unified under a single purpose: to drive effectiveness and improve business results for our clients. Join us at www.stagwellglobal.com.