While the midterm elections delivered a clear message about voter concerns over affordability, the results could reshape the policy environment facing auto dealers. During today’s CBT Live segment, San Tan Ford Owner Tim Hovik, joins us to break down how the shift in Congress creates an opportunity to revisit tariffs and trade agreements, bring greater certainty to automotive supply chains and address the rising costs putting new vehicles out of reach for many consumers.
Since affordability is changing how consumers evaluate their next vehicle, Hovik notes how dealers should focus on total cost of ownership rather than monthly payments alone. At San Tan Ford, affordable pre-owned EVs have become one of the strongest segments in the market, with vehicles generally priced in the low $30,000 range turning in as little as 24 hours. Hovik said he has struggled to keep them in stock and is hearing similar reports from other dealers. He also pointed to growing demand at auction, where more buyers are competing for available EV inventory.
Additionally, Hovik wants lawmakers to provide greater certainty around tariffs and regional trade agreements, particularly the United States-Mexico-Canada Agreement (USMCA). He said the automotive industry depends on integrated supply chains, with manufacturers in other parts of the world benefiting from regional trade relationships that allow countries to share production and sourcing responsibilities. In his view, tariffs that disrupt those relationships could put U.S. automakers at a disadvantage rather than strengthen domestic manufacturing. Notably, Hovik has spent time in Washington discussing trade policy and hopes a new Congress will help move negotiations forward.
Nevertheless, competition from Carvana is another reason Hovik believes traditional dealerships must continue improving the retail experience. Although he said Carvana has not significantly affected his dealership’s business, he noted that Carvana is moving substantial vehicle volume across multiple markets, making its business model worth watching as the industry evolves. Hovik said San Tan Ford is already investing in customer convenience through vehicle delivery, pickup and delivery services, and mobile service. His broader point is that dealers should learn from the parts of competing models that resonate with consumers and make the buying and ownership experience easier. Despite the industry’s headwinds, Hovik remains optimistic about 2027, particularly if lawmakers make progress on tariffs and supply chain issues.
