The End of the Car - 117 Years Since Model-T Was Put on the Road

The commercial production of the Model-T by Henry Ford in 1908 disrupted everything from how people got around to where they lived to how they socialized. 

Now, tariffs could be the most significant disruption on just about everything associated with cars. No longer might you be able to afford one. Not to buy, even used. And not to maintain.

About 5.3 million autos are produced annually in Canada and Mexico, with 70% targeted for the US. market, documents CNBC. The new administration slapped on a 25% tariff. 

How does CNBC see that playing out?

"S&P Global Mobility estimates that a 25 percent tariff on a $25,000 vehicle from Canada or Mexico would be $6,450 — most of which would be borne by the consumer."

Sure, you can buy what's on the lot now. But that supply will run out. Used? No fools, sellers will get it to raise the price. 

In addition is how much more it will cost to keep the car running. Tariffs will increase inflation. Some project the oil change of $50 to $80 will be $100. Already, though, according to NerdWallet, based on AAA numbers, the expense of driving a new car 15,000 miles a year costs $12,297 annually.

That backing off from owning a car could kick in with seniors. Bankrate documents that average monthly Social Security check is $1,783. 

Already in areas primarily for retirement bicycles and tricycles, many e-versions, have become popular. 

Sometimes they're in addition to cars. Owners want to save on the wear and tear of the auto, extending its life. More often it's the way to get around. 

That non-car trend could get traction with youth. They're struggling to get and hold on to jobs. Newsweek reports the jobless rate for those 16 to 19 is over 12% and for the 20 to 24 it's almost 8 percent. A car, just like affording to rent their own apartment, could be impossible. Those with delivery gigs have turned to e-bikes.

The trend could dominate globally, not only in the US. Globally auto stocks were way down. All sectors of that industry, from manufacturing to retail to repairs, could downsize. Meanwhile the car culture could become history.

As a career coach more clients tell me how they resent what it takes, be it money or the worry of something breaking down, to have to have a car to get to work. Who knows, eventually that could trigger early retirements. 

UPDATE:

The new administration agrees to delay tariffs on Mexico for a month.

As an intuitive career coach/tarot reader I uncover the opportunities/obstacles in your earning power that others miss. Free confidential consultation. If we work together, fees custom-made for your budget. For an appointment: contact Jane Genova (text/phone 203-468-8579, janegenova374@gmail.com).