WASHINGTON — American consumers are bracing for what many believe will be a significant rise in vehicle prices — and a growing number are responding by staying out of the market altogether. According to new polling released this week by HarrisX and the communications consultancy Allison Worldwide, U.S. car buyers now expect vehicle prices to climb an average of 14.4 percent over the next 12 months, a spike that could put a chill on what has been a steadily recovering auto market.
The nationally representative survey, conducted in early April among 1,762 American adults, shows a marked decline in consumer confidence around car buying. Just 17 percent of respondents say they are “very likely” to purchase a vehicle within the next year, down from 21 percent in February. Meanwhile, those who say they are “very unlikely” to make a purchase jumped from 28 to 41 percent over the same period.
More than half of Americans — 56 percent — now say it’s a bad time to buy a car, up sharply from 46 percent in the previous poll conducted less than two months earlier. Concerns over financing costs are also mounting: 53 percent of respondents anticipate that auto loan interest rates will continue to rise in the coming year, while only 14 percent expect any relief.
“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 percent more in the near future — on top of already high interest rates — some might make the choice to wait.”
A Cooling Effect Across the Board
The survey also offers a snapshot of shifting sentiment toward vehicles from various countries of origin. While American-made vehicles remain the top choice for U.S. consumers, enthusiasm is waning. Seventy-one percent of respondents said they were likely to purchase a U.S.-made vehicle, down from 80 percent in February. Interest in Japanese cars dropped even more sharply, falling from 59 percent to 47 percent, while favorability toward German vehicles slipped from 47 percent to 37 percent. Korean brands fared similarly, declining from 39 percent to 32 percent.
“Consumers are clearly feeling the pinch of tariff uncertainty and inflation,” said Rebecca Lindland, managing director of the 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.”
Sticking With What They Know
Despite automakers’ increasing investments in electric and hybrid vehicles, the vast majority of Americans remain loyal to traditional internal combustion engines. Sixty-two percent of consumers say they are most likely to purchase a gas- or diesel-powered vehicle, a figure virtually unchanged since February.
Interest in electric and hybrid options remains in the single digits: 9 percent say they are most likely to purchase a battery electric vehicle, while 7 percent would choose a plug-in hybrid. A slightly higher 15 percent express a preference for a non-plug-in hybrid, but even that figure is down from earlier in the year.
“Cost, concerns about EV infrastructure, and broader economic uncertainty are keeping consumers anchored to the traditional mobility choices they know best,” Lindland added. “For now, the EV revolution remains more of a policy vision than a consumer reality.”
More broadly, openness to alternative powertrains remains tepid:
- Gas/diesel: 80% say they are open to purchasing
- Hybrid (non-plug-in): 45%
- Plug-in hybrid: 35%
- Battery electric: 32%
Economic Tremors Beyond the Showroom
The auto industry represents a substantial pillar of the U.S. economy, accounting for nearly 5 percent of GDP and employing some 10 million Americans. A downturn in vehicle sales, even if temporary, has the potential to ripple far beyond dealerships and manufacturers, affecting suppliers, local economies, and job markets.
“Several key questions emerge from this data,” Nesho noted. “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.”
Methodology
The HarrisX-Allison Worldwide survey was conducted online from April 4 to April 6, 2025, and included 1,762 U.S. adults. The results reflect a nationally representative sample, weighted for key demographics such as age, gender, race/ethnicity, region, and income. The margin of error is +/-2.3 percentage points. Participants were recruited via professional, validated web panels to ensure broad representation.