May 8, 2025 8:00am EDT
Used car prices jump to highest level since 2023 as auto tariffs squeeze consumers
Tariffs prompted a rise in used car prices in April, which rose to their highest level since October 2023
By Eric Revell FOXBusiness
Used car buyers are getting hit by higher prices for used cars as the auto market adjusts to President Donald Trump's 25% tariffs on auto imports.
Used car prices in April were notably higher than in March, as the Manheim Used Vehicle Index rose to 208.2 — which amounts to a 2.7% increase from March and is 4.9% higher than last year. That's the highest reading for the index since October 2023.
"We expected to see strong price appreciation in response to the tariffs, and that's exactly what came," said Jeremy Robb, senior director of economic and industry insights at Cox Automotive. "Weekly trends showed higher values as we moved through the month, but those increases tapered off each successive week."
"Used retail sales remain stronger than normal, and wholesale days' supply is a bit tighter, so we will likely see less depreciation than normal over Q2. As we move into the second half of the year, though, the auto market may slow as strong demand likely pulled some transactions forward in March and April as buyers tried to get ahead of expected higher prices due to tariffs," Robb added.
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https://www.foxbusiness.com/economy/used-car-prices-jump-highest-level-since-2023-auto-tariffs-squeeze-consumers
