Never missing an opportunity, car dealers in Elk Grove and across the county seizing on Trump tariffs

Bigger Problems on The Horizon for Elk Grove? | 

If there is one thing about new car dealers, it's that they never miss an opportunity to move the metal. Whether it is Presidents' or Independence Day sales events, complete with free Little Debbie Cherry Pies or Bar S Hot Dogs, car dealers will use any reason to get you on the lot and ask the proverbial question, What do I need to do to get you in this car!  

It should be no surprise that new car dealers use the impending Trump tariffs to attract buyers to their showrooms. A reader below shared the image from Elk Grove Nissan they received this weekend, and another reader told Elk Grove News they received an almost identical message from Elk Grove Mazda, which they immediately deleted.  

This scheme is not a local phenomenon. This weekend, a general manager of an Iowa new car dealer said they are marketing the impending tariffs similarly.

Elk Grove residents will recall a similar marketing maneuver by Elk Grove Mazda two years ago. In the days before the one percent Measure E sales tax went into effect, they urged people to buy now before prices increased (see video below).

A temporary spike in new vehicle sales could provide a short-term boost to the city of Elk Grove's sales tax revenues. However, during the recent mid-year budget review, the city reported lower-than-expected sales tax revenues, the plurality of which come from new car sales.

The 25 percent tariff will raise prices, and if the Elk Grove Auto Mall sales rates are maintained, it could generate more tax revenues. However, economists and auto industry analysts generally agree that new vehicle sales could drop about 10 percent. 

Not coincidentally, Goldman Sachs issued a report today saying they have increased the chances of a recession in the next 12 months to 35 percent, up from 20 percent. Another forecaster is less optimistic, saying there is a 50-50 chance. 

For Elk Grove, any drop in new auto sales and a decrease in other retail sales revenues from a coming recession will significantly affect city operations. 

But don't worry - the new car salesman at the Elk Grove Auto Mall will still try moving the metal, recession or not. Mayor Bobbie Singh-Allen better start greasing the wheels with the new car salespeople!