How the United Auto Workers Strike Could Affect You and Your Car

However, there is unlikely to be a similar and immediate effect from the UAW’s actions. “Right now, I would say the impact on the new vehicle market from the strikes is probably pretty limited,” says Joseph White, a veteran auto industry journalist for The Wall Street Journal and Thomson Reuters. ​​Companies have a “decent” inventory of the vehicles affected, White says: “So right now, at this stage, the impact isn’t that big.”​​

If the strike goes on for months, that could change. ​​​

There are reasons to be concerned about prices in the short term, but they are not related to the UAW’s activities, White says. It’s possible car dealers may engage in price gouging, actions that caused some of the price increases on new vehicles during the pandemic. ​​​

“For consumers, the thing to watch is, what are the dealers doing with prices and who are they trying to take advantage of?” White says. “The dealers may read the headlines and tell consumers, ‘We’re charging $1,000 or $2,000 over list because, you know, strike.’ That’s not the union’s fault. Unions are not doing that. That’s the dealer.” ​​​​

Will the cost of used cars go up? ​​​

When new car prices and interest rates rose during the pandemic, many consumers who couldn’t find new cars — or who couldn’t afford them — looked to the used car market, which elevated prices and contributed to scarcity of those autos. ​​​

But this escalation happened over the course of years, amid supply chain issues that impacted the entire global auto industry. The current situation is different, White says, at least for the near future.​​​

“I’d say it shouldn’t really have a direct impact on used vehicles. This doesn’t mean that people won’t try to take advantage of the situation — dealers, that is,” he says. “But there’s no particular reason why used vehicle prices should go up because there’s not yet a big shortage of new vehicles.”​​​

What about auto repair and maintenance?​​​

​The UAW expanded its strike last week to include dozens of centers that distribute automotive parts for the assembly of new cars, as well as for maintenance of vehicles on the road. This could be where consumers see the most impact. ​​​

“Dealers don’t carry a ton of inventory on parts, so if you have a new vehicle or a vehicle that you’re still taking to the dealership for warranty repairs or recall repairs, the chances that you might not be able to get the part you need because of this, that seems fairly high,” White says. “That could potentially become a problem a bit quicker.”​​​

Customers who need to have upcoming service completed at an official manufacturer franchise might consider scheduling in advance. “I would probably make that appointment right now with the dealership,” says Brian Moody, executive editor at Cox Automotive, a firm that tracks vehicle pricing, sales and service, and includes brands such as Kelley Blue Book and Autotrader. ​​​​

When are consumers likely to feel the effects of the UAW strike? ​​​

​Direct impact from the strike probably won’t be felt by consumers in the short term but may sting if it continues for a month or more. “With the caveat that it’s hard to predict these things, I will say that if this situation doesn’t get resolved for another 30 to 45 days, at that point, definitely there is going to be impact,” White says.​​​

Pricing pressures may begin to be felt first on some new cars, an effect that might culminate around the winter holidays. ​​​

“Typically, automakers do lots of year-end sales and incentives,” Kim says. “If the strike is prolonged towards the December time frame, that’s certainly going to impact people who are holding out in the hopes of good year-end deals.”