NerdWallet's Smart Money Podcast
Economic Chaos and Car Costs: How to Weigh Risks in Uncertain Times
Thu, 05 Jun 2025
Learn how to keep calm and carry on with smart money moves and car buying plans amid tariffs, market swings, and rising prices. Should you buy a car now or wait — even if prices are expected to rise? How can you navigate the financial noise of today’s economy without losing your cool? Hosts Sean Pyles and Elizabeth Ayoola discuss coping with economic uncertainty and the impact of tariffs on consumer behavior. Joined by NerdWallet data journalist and senior economist Elizabeth Renter, they explore how ongoing policy whiplash — from tariffs to spending bills — is fueling market volatility, price instability, and stress for financially savvy households. They share strategies for cutting through the noise, including setting boundaries on news consumption, sticking to the fundamentals of budgeting, and staying focused on what you can control. Then, Shannon Bradley, a NerdWallet authority on auto loans and car buying, joins Sean and Elizabeth to discuss whether now is a smart time to buy a car. They explore how rising tariffs, depleted inventory, and market unpredictability are reshaping the auto market. They also discuss when buying makes sense, how to tell if your current car is worth holding onto, and tools to assess financing tradeoffs. Plus: used car loan interest rates, prioritizing transportation in your budget, signs it's time to replace your car, and how to budget for future vehicle purchases. Use NerdWallet’s free auto loan calculator to estimate a monthly car payment and total loan cost: https://www.nerdwallet.com/calculator/auto-loan-calculator In their conversation, the Nerds discuss: how tariffs affect car prices, economic uncertainty 2025, car prices and inflation, used car financing tips, emergency fund during inflation, average car payment 2025, best time to buy a car, auto loan calculator, how to deal with market volatility, economic stress coping strategies, when to replace your car, saving for a car down payment, impact of tariffs on economy, trade policy and car prices, high yield savings for emergencies, used car interest rates 2025, how to manage financial anxiety, budgeting during inflation, how to stay calm during economic turmoil, effects of tariffs on global trade, how to get a good deal on a car, Kelley Blue Book car value, how to plan for a recession, used car inventory shortage, when to shop for cars, employee pricing car deals, how to choose a car loan, and NerdWallet car buying tips. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]. Like what you hear? Please leave us a review and tell a friend. Learn more about your ad choices. Visit megaphone.fm/adchoices
Chapter 1: Should you buy a car now or wait?
Sean, how's your car doing these days?
I love my car. She is happy and healthy and ready to roll. How's yours?
It's all good for now, but for at least one of our listeners, it might be time to get into the car market. But they're wondering about the effect of tariffs on that decision.
Well, we've got thoughts and advice, so rev the engines. Welcome to NerdWallet's Smart Money Podcast, where you send us your money questions and we answer them with the help of our genius nerds. I'm Sean Piles.
And I'm Elizabeth Ayola. This episode, we're looking at whether tariffs and other factors mean it's a good time to buy a car or not. But first, our weekly money news roundup, where we break down the latest in the world of finance to help you be smarter with your money.
Elizabeth, I'm sure you'd agree that these are confusing times for our financial lives.
I would agree, Sean. And if I didn't work in the news business, I'd try to avoid the headlines as much as possible.
But we can't, and a lot of other people can't either. So how do we navigate all the uncertainty around us? It's not the first time we've asked that question on the show, but we're asking it again to get some perspective from NerdWallet economist and longtime friend of the show, Elizabeth Renter. Welcome back, Liz. Sean, Elizabeth, thanks so much for having me.
I don't know about you, Liz, but I find it incredibly difficult these days to just tune out the daily machinations of the U.S. and global economies, and not just because I host a finance show. It seems like we're on this wild roller coaster, and a lot of us would really like for the ride to end so we don't have to pay attention anymore.
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Chapter 2: How do tariffs affect car prices?
Well, I must say that people are not asking me what to do with their money, but I know what I'm doing with my money. I have personally been reviewing my budget more frequently, cutting back on unnecessary expenses like Instacart, Uber Eats. Can you believe I canceled my Amazon Prime? Proud of you. Thank you. Thank you. And also just upping my emergency savings.
I've also increased the amount I'm contributing to my retirement accounts. And to Liz's point, I do spend time reading the news, but spend the most of my time focused on what I can control.
So Liz, how do you know when it's really time to worry? Are there some signs to look for that tell us, yeah, maybe it's actually time to think about doing something different than we've been doing? What worries you?
The things that worry me as an individual aren't always the same things that worry me as an economist. And honestly, it's that difference that makes my job challenging. As an economist right now, the thing I'm concerned about is long-term effects on global trade relations and the place of the U.S. economy within the world.
Day to day, I'm watching things like inflation and the impact to the labor market, and I anticipate we're going to see some uncomfortable changes in both of these areas. But bigger picture, I'm concerned that the approach to economic policies under this administration could undermine the strength of our economy longer term. This is...
less of a sure thing than higher prices due to tariffs, that will happen. But it's a big concern of mine. And then what worries me as an individual is what I think worries most of us. What does the market volatility mean for my retirement? How will tariffs impact the cost to maintain my car? Because I really love my car too. So that's a big one.
If the worst case happens and we do enter a recession, who around me might lose their job? Is my emergency fund big enough? And can it ever be? I think these concerns are pre-universal.
Yes, I have many of these too, Liz, so I feel you. So is there anything I can absolutely 100% ignore?
I think the answer to that might be different for everyone. In an effort to stay informed, you may be putting yourself under undue stress. So I think the key to knowing how much information to consume is weighing the costs of that information. And that involves first understanding why you're paying attention.
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