The surge in new car purchases before tariffs were imposed has pushed up the prices of used vehicles. to its highest level Since late 2023, with purchasers rushing to acquire both new and used vehicles before anticipated price hikes, Cox Automotive’s Manheim Used Vehicle Value Index reported a rise of 4.9%. This growth has been more rapid and sustained over a longer duration compared to the usual "spring bounce."
The senior director of economic and industry insights at Cox Automotive stated, “Typically, the 'spring bounce' concludes around the second week of April, but this year, wholesale value increases persisted throughout the whole month and were significantly more robust compared to our usual observations. As anticipated, we saw substantial price hikes in reaction to the tariffs, which unfolded precisely as predicted."
Import duties on cars and auto parts coming from overseas don't have a direct effect on the prices of pre-owned vehicles; however, they influence various aspects of the automotive industry that do make an impact. These tariffs will progressively alter the cost, supply, and consumer interest in new automobiles, potentially driving more individuals towards the second-hand vehicle sector, thereby leading to higher overall costs.
The cost of an average used car increased by 2% to over $25,000, with new vehicles remaining pricey at around $48,000 each. Although these figures remain above the levels seen prior to the pandemic, they aren’t experiencing the same dramatic or unpredictable fluctuations observed in recent years. Earlier this year, Cox noted that used-car pricing started to settle somewhat in 2024, even before facing disruption from tariffs.
[Images: Woodsnorthphotos, Eric Glenn, Simone Hogan via Shutterstock]
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