CLOUD THEORY "ON THE HORIZON" REPORT POINTS TO 153,000 IN "PULL AHEAD" SALES PRIOR TO TARIFF IMPLEMENTATION

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Apr 07, 2025, 12:59 ET

GRAND RAPIDS, Mich., April 7, 2025 /PRNewswire/ -- Consumer fears over the cost impact of automotive tariffs led to an additional 153,000 new vehicle sales in March, according to automotive data analytics firm Cloud Theory. The findings are part of Cloud Theory's quarterly automotive industry report "On the Horizon" (Here's the link) released today.

New-vehicle pull-ahead sales from tariff-related fears hit 153,000 units in March.

New vehicle movement jumped 38% month-over-month, from approximately 960,000 units in February to 1.31 million units in March. While some gains were attributable to seasonality and tax refunds, a significant portion was related to consumer tariff concerns.

"Consumers are well aware of the risks that these tariffs pose in terms of future cost hikes, with price increases potentially moving from in the hundreds of dollars to the thousands," said Rick Wainschel, Vice President of Data Science and Analytics for Cloud Theory. "Consumers, in anticipation of these higher prices, rushed to buy new vehicles in the current period. While this provided a boost in the short run, the 'pull ahead' effect of these accelerated sales runs the risk of leading to a hangover effect that depresses results going forward."

Cloud Theory also found new vehicle prices were already rising sharply even before tariffs went into effect. From February 23 to March 31, prices rose daily, growing by $1,123 over this time. In addition, manufacturers scaled back on discounts and incentives in March. For the first time in more than a year, Cloud Theory's Market Adjustment metric pointed to a pullback in aggressiveness, with a decline of $249 for the overall month and $432 when comparing the end of March to the end of February.

"The industry is contending with the potential of much higher costs, which will trigger much higher prices for consumers going forward. While this led to very strong results in the short term as consumers got ahead of the price increase curve, the longer-term effects will likely be highly detrimental to industry prospects. And if the tariffs become entrenched and trigger an all-out trade war, marketplace dynamics could quickly go from worrisome to catastrophic."

In other findings:

Year-over-year inventory levels increased from 2.76 million in Q1 2024 to 3.03 million in Q1 2025;
Turn rate jumped from 34% in February to 42% in March;
Toyota Motor Corporation continued its dominance of Cloud Theory's Inventory Efficiency Index with Lexus and Toyota in the top two spots with scores of 280 and 223, respectively.

About Cloud Theory   

Cloud Theory is more than a concept. It is the eye of the storm, where cutting-edge data, software, and artificial intelligence meet deep industry knowledge and experience. Built for automotive manufacturers, agencies, and affiliates, Cloud Theory enables our customers to understand – in real time – the complex competitive world in which they do business and to make bold decisions that drive them forward. The combination of billions of data points, interactive tools, and expert consulting gives our clients the ability to weather any storm and find their way to clear blue skies. Learn more at cloudtheory.ai. To learn more about our entire portfolio of automotive brands, visit www.advancelocalautomotive.com.

About Advance Automotive

Created in 2017, Advance Automotive is a portfolio of automotive, technology, marketing, data, and software businesses providing AI-driven marketing solutions in the automotive industry. Advance Automotive includes independently operated agencies, ZeroSum, Adpearance, and Search Optics, as well as affiliate solutions from Cloud Theory and Hoot Interactive. Advance Automotive is part of Advance Local, a key unit of Advance, a privately held company founded in 1922.

Advance's portfolio of exceptional companies includes: