Consumer News: Calm before the storm: Car prices set to rise sharply by after a brief period of stability

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Details: Written by Consumer Affairs News; Category: Consumer Daily Reports; Published: 11 April 2025; Created: 11 April 2025; Last Updated: 11 April 2025

The sub-$30,000 car is on the brink of extinction

By Truman Lewis

of ConsumerAffairs

April 11, 2025

Key Takeways:

After a brief period of stability, new car prices in the U.S. are poised for a steep climb, driven largely by incoming import tariffs and a scramble for pre-tariff inventory.
March figures from Kelley Blue Book show a modest dip in the average transaction price (ATP) of new vehicles to $47,462 down slightly from February and up less than 1% year over year. But according to Cox Automotive, that pricing lull is likely to vanish in the months ahead.
All signs point to higher prices this summer, said Erin Keating, executive analyst at Cox Automotive, in comments to Wards Auto. There is no way around it. Tariffs are going to push new-vehicle prices higher in the U.S.

Tariffs take a toll

The upcoming 25% tariff on imported vehicles is expected to be a game-changer. While the policy directly affects only foreign-assembled cars, the market impact is broader, as dealers and consumers rush to secure vehicles before the increases take effect. Even domestically manufactured models could see price jumps due to tightened supply and increased demand.

Vehicles facing the new tariffs may experience ATP hikes between 10% and 15%. Cox Automotive anticipates a minimum 5% rise in prices across the board due to market pressure alone.

Budget-conscious shoppers will likely bear the brunt of the changes. Only 26 vehicle models carried ATPs under $30,000 in March, comprising just 14% of U.S. new-car sales. Many of these, including the Chevrolet Trax, Honda HR-V, Kia Soul and Mazda3, are assembled outside the U.S. and are among the most vulnerable to tariff-related price increases.

March Madness: Sales surge ahead of tariffs

U.S. consumers appear to have responded to early warnings. New-vehicle sales soared in March, with 1.59 million units sold a 30% jump over February and the strongest monthly total in nearly four years. Buyers rushed to take advantage of stable pricing before the expected tariff impact hits.

Incentives steady, but uneven

Incentives remained steady in March, holding at 7.0% of ATP, matching Februarys rate and slightly up from 6.7% the previous year. However, deals were uneven across segments. While luxury cars, compact SUVs and full-size pickups offered generous incentives, categories like small/midsize pickups and full-size SUVs offered as little as 2.6% of ATP in discounts.

EV prices defy expectations

Despite increasing competition and maturing technology, electric vehicle (EV) prices continued to rise. EV ATPs reached $59,205 in March, up 7% year over year and 25% above the industry average. Incentives dropped to 13.3% from 14.3% in February, indicating waning manufacturer support even as prices climb.

Tesla played a major role in this trend. The companys March ATP increased to $54,582, with Model 3 and Model Y prices up month over month and year over year. Still, Teslas Q1 sales dipped more than 8% from a year ago, a sign that higher prices may be weighing on demand.

The road ahead

As spring progresses, much hinges on how long pre-tariff inventory can sustain current price levels and how automakers adjust pricing strategies for new arrivals. For now, consumers hoping to score a deal may need to act fast before summer brings an inevitable price surge across the board.

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Posted: 2025-04-11 20:23:19

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Consumer News: Seniors warned about a growing Social Security scam
Tue, 07 Apr 2026 19:07:06 +0000

Scammers impersonate government officials to steal personal information

By Mark Huffman

of ConsumerAffairs

April 7, 2026

Federal watchdog warns of a sharp rise in scam emails posing as Social Security statements.
Fraudsters are using official-looking logos, language, and links to steal personal data.
Officials urge Americans to delete suspicious messages and access accounts only through SSA.gov.

Everyone should be on the lookout for especially retirees. Scammers target seniors because they are often vulnerable targets with money in the bank. In recent months, theyve used the disguise of an employee with the the Social Security Administration (SSA).

SSAs Office of the Inspector General (OIG) is warning Americans about a surge in fraudulent emails designed to look like official Social Security communications, part of a broader rise in government imposter .

In an alert earlier this year, the OIG said it is seeing a significant increase in emails that falsely claim recipients can download their Social Security statements. The messages are not legitimate and are intended to trick people into clicking links or opening attachments that can lead to identity theft or financial loss.

These messages are not from Social Security, said Michelle Anderson, a top official in the inspector generals office, who urged recipients to delete them and report the incident.

Clever impersonation

The emails often closely mimic official government correspondence, using agency logos, formatting, and language to appear authentic. In many cases, they attempt to create urgency by telling recipients their statement is ready or that immediate action is required.

Clicking on links in the emails can direct users to fake websites or install malware, allowing scammers to steal sensitive personal and financial information, officials said.

The OIG emphasized that legitimate Social Security emails come only from addresses ending in .gov and do not include unsolicited links or attachments asking users to download documents.

To stay safe, officials advise consumers not to click on links in unexpected emails and instead access their Social Security accounts by typing the official website address directly into their browser.

The warning comes as scammers increasingly target Americans particularly older adults by impersonating government agencies in an effort to gain access to money or personal information.

Anyone who receives a suspicious message is encouraged to delete it and report the incident through the Social Security OIGs fraud reporting channels.

Consumer News: Costco is opening its first standalone gas station — Here’s why drivers should care
Tue, 07 Apr 2026 19:07:06 +0000

The next phase of Costcos gas strategy

By Kyle James of ConsumerAffairs

April 7, 2026

Faster, less chaotic fill-ups: Standalone stations mean more pumps, shorter lines, and no warehouse parking lot traffic.
Same cheap gas, easier access: Expect Costcos typically lower prices (often 2030 less per gallon) without the usual hassle.
Bigger impact ahead: If this works, more locations could roll out boosting competition and helping keep gas prices lower long-term.

Costco is doubling down on one of its biggest traffic drivers: cheap gas.

The retailer plans to open its first-ever standalone gas station in Mission Viejo, CA, by June 2026. The site, about 40 miles from downtown Los Angeles, will feature 40 pumps, making it the largest Costco gas station to date.

A second standalone location is already in the works for Honolulu, expected in 2027.

While youll still need a Costco membership to take advantage, heres what it means for drivers long-term.

Whats changing (and why its a big deal)

Costco gas has always been tied to its warehouse locations. Thats part of their strategy, as they know cheap fuel pulls you in, and then you shop.

But it also creates problems:

Long lines
Packed parking lots
Limited access during peak hours

A standalone Costco gas station fixes that, at least in theory.

By separating fuel from the warehouse, Costco can:

Serve more drivers, faster.
Reduce congestion at stores.
Expand into areas without a full warehouse.

And for shoppers, that likely means easier access to some of the cheapest gas around.

Why Costco gas is so popular

Costco doesnt make much profit on fuel, but thats not really its job. Low gas prices are designed to drive loyalty to the Costco warehouse.

But for members, the savings are real:

Often 2030 cheaper per gallon than nearby stations.
Consistent pricing (less fluctuation than competitors).
High-quality fuel standards.

Thats why lines to get gas can get ridiculous at peak times.

What you should actually do (actionable tips)

Use standalone stations strategically.When they expand to other cities, theyll likely be less crowded than warehouse locations, especially if they have 40+ pumps. That means faster fill-ups without the wait at most stations.
Stack your gas savings. Pair Costco gas with a 3%5% cash-back credit card. On $250/month in gas, thats:

- ~$90/year back at 3%
-~$150/year back at 5%
Time your fill-ups. Even with new stations, timing will still matter:

Best time: Early morning or late evening.
Worst time: Weekends and right after work.

Why this matters long-term

If this first location performs well, expect more standalone Costco gas stations across the country.

Thats important because:

It increases competition, which helps keepgas prices lower overall.
Gives members more ways to justify their membership.
Makes Costco a bigger player in everyday spending, not just bulk shopping.

Bottom line

This isnt just another boring new gas station popping up. Its Costco testing a new way to expand its cheapest, perhaps most useful product.

And if it works, it could mean more convenient access to lower gas prices without the usual Costco chaos.

Consumer News: Airlines are raising checked bag fees as the cost of jet fuel soars
Tue, 07 Apr 2026 19:07:06 +0000

When booking a flight, dont just consider the fare

By Mark Huffman

of ConsumerAffairs

April 7, 2026

Several major U.S. airlines have raised checked baggage fees in recent months, citing higher operating costs driven by rising jet fuel prices.
The increases affect both domestic and international routes, with some fees climbing by $5 to $15 per bag.
Industry analysts say the move reflects broader cost pressures across aviation, though consumer advocates warn of growing frustration among travelers.

U.S. airlines are once again increasing checked baggage fees, pointing to surging jet fuel prices as a key factor behind the latest round of price hikes. The changes, which have rolled out across several major carriers, are expected to affect millions of travelers heading into the busy summer and fall travel seasons.

United Airlines said the cost of the first checked bag is going up to $45 if passengers prepay. The fee is $50 if they pay within 24 hours oftheir flight.

"United Chase credit card holders, MileagePlus Premier members, active military members,and customers traveling in premium cabins can still check a bag for free," the airline said in a statement.

Fuel expenses have risen sharply

Airline executives say the increases are necessary to offset escalating fuel expenses, which remain one of the industrys largest and most volatile costs. Jet fuel prices have risen significantly over the past year due to a combination of geopolitical tensions, supply constraints, and fluctuating global oil markets.

The move underscores a broader trend in the airline industry toward unbundling services charging separately for amenities that were once included in ticket prices. Checked baggage fees alone generate billions of dollars annually for U.S. carriers, making them a critical revenue stream.

However, the increases are drawing criticism from consumer advocates, who argue that travelers are already facing higher ticket prices and additional fees across the board. Some warn that continued hikes could erode customer loyalty, particularly as budget-conscious passengers look for ways to cut travel expenses.

Why airlines charge for checked bags

So, why dont airlines just raise the ticket price to include the cost of checking bags? Chalk it up to competition.

Studies have shown that consumers are extremely price-sensitive when booking a flight. A fare difference as small as $2 will cause them to choose a different carrier.

That means it is very important to know what an airline charges for checked bags when booking a flight. A cheap fare might not be so cheap if youre checking a couple of bags. Consider strategies such as packing lighter or using airline-branded credit cards that may waive baggage fees.

Consumer News: The tax-filing deadline is approaching: What you need to know
Tue, 07 Apr 2026 19:07:06 +0000

If you arent going to be ready, file for an extension

By Mark Huffman

of ConsumerAffairs

April 7, 2026

The IRS is urging taxpayers to file electronically and choose direct deposit to speed refunds.
April 15 remains the deadline for most filers, with extensions available, but not extensions to pay.
Free filing options are available for eligible taxpayers through IRS Free File and Direct File programs.

With the April 15 tax filing deadline fast approaching, the Internal Revenue Service (IRS) is reminding millions of Americans to finalize and submit their returns while taking advantage of tools designed to make the process faster, safer, and more accurate.

The agency is encouraging taxpayers who have not yet filed to do so as soon as possible, noting that electronic filing combined with direct deposit remains the quickest way to receive a refund. Most refunds are issued within 21 days when returns are filed electronically without errors.

Extensions available but taxes still due

For those who need more time, the IRS says taxpayers can request an automatic six-month extension, pushing the filing deadline to October. However, officials stress that an extension to file is not an extension to pay.

Taxpayers are still required to estimate and pay any owed taxes by April 15 to avoid potential penalties and interest. Payments can be made online through IRS Direct Pay, debit or credit card, or other electronic options.

Free filing options expand access

The IRS continues to promote free filing programs for eligible individuals. IRS Free File allows taxpayers below certain income thresholds to use guided tax software at no cost, while Direct File available in select states offers a simplified way to file directly with the IRS.

These tools are designed to help taxpayers file accurately and avoid common errors that can delay processing, the agency said.

Common errors can delay refunds

The IRS is also warning filers to double-check their returns for frequent mistakes, including incorrect Social Security numbers, mismatched income figures, and missing signatures. Errors can slow down processing and delay refunds.

Taxpayers are also advised to gather all necessary documents, such as W-2s, 1099 forms, and records of credits or deductions, before filing.

Eligible taxpayers may still benefit from valuable tax credits, including the Earned Income Tax Credit and Child Tax Credit, which can significantly boost refunds. The IRS encourages filers to review eligibility carefully, as many taxpayers miss out on credits each year.

Watch for

As the deadline nears, the IRS is cautioning taxpayers to remain vigilant against and fraudulent communications. The agency emphasizes that it does not initiate contact via email, text, or social media to request personal or financial information.

With just days remaining before April 15, IRS officials say filing sooner rather than later can help taxpayers avoid last-minute stress, processing delays, and potential penalties.

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Consumer News: Inflation at the grocery store may be worse than at the gas pump
Tue, 07 Apr 2026 19:07:06 +0000

Because of the conflict in the Middle East, global food prices surged 2.4% in March

By Mark Huffman

of ConsumerAffairs

April 7, 2026

Global food prices rose 2.4% in March, the second straight monthly increase, driven largely by higher energy and fertilizer costs tied to the Iran war.
Fertilizer shortages and surging fuel prices are raising farm costs and threatening crop yields, creating lagged inflation risks later in 2026.
U.S. food inflation had been expected to ease this year, but rising oil prices and supply disruptions are now likely to push grocery prices higher again.

The most visible effects of the war against Iran showed up quickly in the form of surging gasoline prices. But the second act may appear at the supermarket checkout counter, and the latest data suggest it could be worse.

Data released by the United Nations show the FAO Food Price Index climbed 2.4% in March, marking a second consecutive increase and reversing the easing trend seen through much of 2025. The gains were broad-based, with sugar and vegetable oil prices jumping sharply and wheat also rising.

The immediate catalyst is the escalating conflict involving Iran, which has disrupted critical shipping lanes and driven up oil prices, two factors that feed directly into food production and distribution costs.

Energy shock feeds directly into grocery bills

Economists say the most immediate transmission channel to U.S. consumers is energy. Oil prices have surged above $100 per barrel amid supply disruptions, lifting gasoline and diesel costs nationwide.

That matters because food is highly energy-intensive: fuel powers farm machinery, irrigation systems, processing facilities, and transportation networks.

Higher transportation costs are often the first to show up in grocery prices, followed by broader increases as producers pass along rising input costs.

Fertilizer shortages pose longer-term risk

Beyond energy, the conflict is also constraining supplies of fertilizer, arguably the more significant medium-term risk.

Key fertilizer components move through the Strait of Hormuz, a chokepoint now affected by the conflict. Disruptions have already driven sharp increases in input costs, andin some cases, reduced availability.

Farmers facing higher costs are expected to cut back on fertilizer use or plant fewer acres, decisions that could reduce yields later this year and into 2027.

That creates what analysts describe as a lagged inflation effect, where todays input shocks translate into tighter food supplies months later.

From easing to re-acceleration

Before the conflict escalated, the outlook for U.S. food inflation was relatively benign. The USDA had projected food-at-home prices would rise about 3.1% in 2026, only modestly above historical averages.

Recent developments, however, are forcing economists to reassess.

Early indicators already show pressure building: U.S. grocery prices were up about 3% year-over-year as of February, even before the full impact of the conflict.

Now, some analysts warn that global food prices could rise 12% to 18% if disruptions persist, adding significantly to household grocery bills.

Consumer impact and policy implications

Rising food costs tend to hit lower-income households hardest, as groceries make up a larger share of their spending.

Persistent food inflation could also complicate monetary policy. Federal Reserve officials had been watching for signs of easing price pressures, but renewed increases in food and energy could delay interest rate cuts and keep borrowing costs elevated.

Business leaders are already flagging the risk. JPMorgan CEO Jamie Dimon recently warned that inflation could become a skunk at the party if geopolitical tensions continue to push up commodity prices.

The trajectory of food inflation in the U.S. now hinges heavily on geopolitics.

If energy markets stabilize and fertilizer flows resume, price pressures could moderate later in the year. But prolonged disruption particularly during the critical planting season raises the risk of sustained or even accelerating food inflation into 2027.

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