While most car buyers are keeping an eye on MSRP, automakers are quietly increasing the actual cost to consumers — without changing the sticker price. These are known as stealth price hikes, and they’ve become the go-to strategy for car manufacturers adjusting to new tariffs imposed by the U.S. government.

In April 2025, a 25% tariff on foreign-built vehicles and auto parts was enacted. The result? Manufacturers like Ford, Toyota, Hyundai, and VW are seeing costs rise by thousands of dollars per vehicle — and they’re passing those costs on to consumers in subtle ways.

How Are Prices Going Up Without Changing Car Prices (MSRP)?

Stealth pricing isn’t about slapping a new number on the window. Instead, automakers are:

• Cutting cash-back incentives
• Raising destination fees
• Reducing lease support
• Offering fewer low-interest financing options

A recent Los Angeles Times article explains that Ford raised the cost of its Mexico-built models (like the Bronco Sport and Maverick) by $2,000. But instead of hiking the base MSRP, which consumers would quickly notice, the majority of the price increase came from higher delivery fees and vanishing discounts.

According to Kelley Blue Book, the average transaction price for a new vehicle is now $48,699, up 2.5% from the previous month — the sharpest increase in five years.

What This Means for Dealerships

Customers are walking into dealerships expecting one price and encountering another when it’s time to sign. The numbers on paper haven’t changed much — but the monthly payments have. That disconnect creates frustration, erodes trust, and can lead to lost sales.

It’s critical for dealerships to get ahead of the message.

That doesn’t mean blaming manufacturers or diving into political debates about tariffs. Instead, it’s about transparency and reassurance:

• Be honest and explain how new costs are affecting the industry.
• Promote vehicles not as impacted by the tariffs.
• Reinforce your commitment to providing value even if prices have to go up.

How It’s Relevant TV Helps Dealerships Deliver the Message

Here’s where It’s Relevant TV steps in as a game-changer for in-store communication.

Instead of relying solely on salespeople to explain these changes — often after sticker shock has already set in — dealers can use their existing TVs to deliver helpful, targeted content before that moment of tension.

Here’re some ways dealerships are combatting the changes with their It’s Relevant TV:

• Display brief explainer videos about how tariffs affect prices.
• Showcase special offers on U.S.-built or pre-tariff inventory.
• Blend in entertainment with their licensed TV shows, to keep the experience light and engaging.
• Reinforce your dealership’s commitment to your customers while customers wait in the showroom or service lounge.

This kind of communication reduces anxiety and builds trust. When customers understand what’s happening and feel informed rather than surprised, they’re far more likely to follow through with a purchase.

Turning a Pricing Challenge Into a Sales Opportunity

Yes, prices are rising — but dealerships that handle the messaging well can come out stronger. Smart, in-store communication can:

• Turn confusion into clarity
• Build customer confidence
• Highlight urgency around pre-tariff deals
• Drive sales with greater transparency

The key isn’t to pretend prices haven’t changed — it’s to explain why they’ve changed in a way that keeps the customer on your side. As automakers adjust to tariffs with behind-the-scenes pricing changes, dealerships need to lead with clarity, empathy, and strategy. With tools like It’s Relevant TV you’re not just selling cars — you’re building trust, educating buyers, and creating a showroom experience that will bring them back time and time again.