Used Car Prices Soar to Recent High Due to Tariff Anxieties: Cox Automotive

Used vehicle prices in the United States have ticked upward to the highest point since October 2023, according to a recent CNBC report. Citing data and commentary from Cox Automotive, the outlet indicated that American consumers had created a surge of rushed demand in terms of purchasing a used car, SUV, or truck as fears of imminent (and more significant) price increases tied to President Donald Trump’s wide-ranging tariffs mount.

Cox Automotive’s Manheim Used Vehicle Value Index was utilized to peg the pricing trend, with the index rising 4.9% in April versus year-ago levels. Furthermore, an increase of 2.7% from March to April was also observed, far outstripping the usual 0.2% increase expected on a month-to-month basis.

Jeremy Robb, Cox Automotive senior director of economic and industry insights, remarked upon the findings.

“The ‘spring bounce’ normally ends the second week of April, but this year, wholesale appreciation trends continued for the entire month and were much stronger than we typically observe,” he said.

“We expected to see strong price appreciation in response to the tariffs, and that’s exactly what came,” Robb added.

CNBC’s Michael Wayland did note that while the tariffs may not directly, or at least obviously, impact the price of used cars already operating stateside, the pressure applied to the new car market by these tariffs was seemingly exerting itself on the used vehicle market. As a 2024 Consumer Affairs report highlighted, a majority of Americans purchase used cars as opposed to new, with approximately three-quarters of vehicles purchased being pre-owned rather than fresh off the dealership lot.

And the price of used cars had already created some degree of sticker shock for U.S. consumers following the onset of the COVID-19 pandemic in 2020. That year, the average price of a used vehicle in the United States rested at $22,030, but by 2023, that figure had soared to $29,310 (an increase of 33%). In comparison, in 2016, the average used car price was estimated at $19,890, and the price was measured at $21,090 in 2019 (an increase of just 6% over three years).

After a few years of calming prices as monitored by the Manheim Index, this latest surge appears to be an unwelcome second wave of price pressure on the used vehicle market.

As Used Car Prices Rise, US Dealerships May Also Face Challenges Stocking New Vehicles Due to Tariffs

The supply chain for new vehicles may also be exhibiting signs of strain related to the tariffs, per NBC News. Using Pine Belt Subaru in Lakewood, New Jersey, as a case study, the outlet noted that the dealership typically receives 100 to 120 vehicles a month — however, this month that number had tumbled to just 18 units.

NBC News quoted Dan Ariel, director of the Pine Belt Auto Group, on the current state of affairs.

“We need inventory. We need to fill our shelves with vehicles,” Ariel said. “If the factory is not giving us vehicles right now, it’s definitely a concern.”

Supply is tightening more broadly, as well. NBC News gestured toward Cox data indicating that, as of April, dealers only had enough new vehicle inventory to last 60 days. Last year, the average supply of the same ranged from between 80 and 85 days.