#CircleIPO consumers hard, with RBC estimating 3,000to3,000to6,000 in added costs per vehicle—depending on foreign-made parts. These expenses will likely push up sticker prices for new cars, with inflationary effects lingering in CPI reports for at least a year.

As affordability worsens, buyers may pivot to the used car market, driving up demand—and prices—for pre-owned vehicles. This substitution effect could squeeze budgets even further, creating a domino effect across the auto industry.