The Trump administration’s imposition of a 25% tariff on all imported vehicles is creating seismic shifts in the US automotive market, sending ripple effects through manufacturers, consumers, and advertising budgets alike.
As production costs climb and sales forecasts dim, AM/FM radio may emerge as a strategic bright spot for auto dealers seeking to maintain visibility and drive ROI.
Major automakers are already tallying the damage. Toyota has projected a 21% decline in full-year operating profit, with $1.3 billion in tariff-related costs expected over just April and May, as revealed in its Q1 2025 earnings call. Ford expects $2.5 billion in additional costs in 2025 due to the tariffs. In response, the company has raised prices on three of its Mexico-produced models – the Mustang Mach-E, Maverick, and Bronco Sport – by up to $2,000 per vehicle.
The price hikes are also reshaping the used car market for dealers. According to Cox Automotive, April’s average used car price reached its highest point since October 2023. The Manheim Used Vehicle Value Index climbed to 208.2, reflecting a 2.7% rise from March and a 4.9% year-over-year increase.
Analysts warn that sustained vehicle inflation could shrink overall annual sales by over one million units.
As consumers recoil from rising sticker prices, dealerships are being forced to reconsider their marketing mix. AM/FM radio, which made up 9.5% of the average dealership’s advertising budget in 2023, or roughly $50,248 per store, is facing pressure from digital and traditional media.
But data suggests that radio may be uniquely positioned to deliver during this disruption.
According to The Media Audit’s Fall 2024 survey, 3.4 million adults in the New York City Greater Metropolitan Area alone plan to purchase a new vehicle in the next 12 months. Among radio listeners, 25% say they intend to buy a new vehicle within that window – a rate 30% higher than the general market average of 19.6%. That number climbs even higher among heavy AM/FM users: 30% of those who listen for more than three hours daily plan to purchase, making them 53% more likely to buy than the general population.
Radio fans also over-index when it comes to vehicle preferences. Of those listeners, 11.3% expect to purchase a foreign vehicle, compared to 9.4% of the general market, while 23.9% aim to buy domestic, exceeding the general market average of 20.4%.
Case studies support radio’s tangible return on investment. Audacy highlighted a campaign by Crown Chrysler Dodge Jeep Ram in Pittsburgh, which spent roughly $84,000 per quarter in 2023 on two local TV stations. After reallocating 20% of that budget to AM/FM stations WDSY and WBZZ, the dealership boosted its reach among men aged 35–64 from 47% to 60%.
The radio spend had a negligible effect on TV impact, with less than a 3% drop in reach.
As inflationary pressure builds and vehicle inventory shifts, radio may offer dealers not just a cost-effective option, but a competitive edge.
Want to hear straight from the source how auto dealers are thinking and how to talk their language to secure more ad revenue?
Don’t miss What Are They Thinking? The Future of Automotive Advertising and Hispanic Radio at Hispanic Radio Conference 2025. Moderated by Nueva Network Director of Business Development Benjamin Finley, this session features:
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Kenny Dean, Business Analyst and Marketing Lead, Honda Cars of Rockwall/Lithia Motors
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Tom Haynes, Owner, CarPro.com
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Felipe Herrera, VP of Automotive New Business, TelevisaUnivision
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John Snyder, Group Account Director, Global Team Blue
Early Bird pricing is still available, and hotel rooms at the conference rate are going fast.
