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More than four in 10 consumers plan to delay vehicle purchases amid an even wider sentiment reluctant to incur debt, KPMG found in a national survey last month.
The uncertainty of global tariffs and how they’re ultimately going to affect inflation and prices is driving the caution, according to the online survey of 2,500 consumers. It found 43% plan to delay auto purchases due to tariffs while 68% have a “low appetite’’ for taking on more credit and other debt.
“Today’s economic landscape has triggered remarkable consumer caution nationwide,’’ said Joe Paradise, KPMG’s Charlotte-based managing partner for the firm’s 11 offices in the Carolinas, Florida and Puerto Rico.
“From our vantage point in Charlotte, we’re observing this shift toward financial mindfulness as households balance immediate needs against long-term stability, not driven by fear, but by strategic planning,’’ Paradise said. “This calculated approach reflects consumers’ determination to maintain control despite market uncertainties, signaling a new era of economic resilience.”
Broadly, the survey reflects concern that prices may rise, an expectation bolstered today by Walmart, the nation’s largest retail. CFO John David Rainey told CNBC tariffs are “still too high’’ and may lead to higher prices by the end of May.
“Americans are becoming more discerning with their personal finances, evaluating ways to cut costs and weighing major purchase decisions amid escalating economic volatility including tariffs, sticky inflation, and elevated prices,’’ said the second annual KPMG American Perspectives survey, released today.
Signaling that “value is a premium,’’ seven in 10 respondents are using or likely to view free ad-supported TV instead of ad-free streaming over the next six months, the survey said. The caution is far reaching, with 21% having switched auto insurance or shopped for cheaper options and half saying traditional higher education degree is no longer essential.
Six in 10 people planning to buy a car are adjusting their plans, based upon their assumptions about tariffs, the survey found. Forty-three percent are delaying while 17% are speeding up purchases before potential price increases.
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Author: staff report
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