Used vehicle prices saw a significant surge last month, reaching their highest point since October 2023, as consumers rushed to purchase vehicles amid concerns over potential price hikes due to new auto tariffs. According to Cox Automotive’s Manheim Used Vehicle Value Index, which tracks the prices of used cars sold at U.S. wholesale auctions, prices increased by 4.9% in April compared to the previous year, reaching a value of 208.2. This marked a 2.7% rise from March, which is a sharp increase compared to the usual month-to-month movement of around 0.2%.
Jeremy Robb, senior director of economic and industry insights at Cox Automotive, explained that while the spring bounce typically ends in mid-April, this year, wholesale prices continued to climb throughout the month. Robb pointed out that the expected price increase was tied to the looming tariffs, which had a strong effect on the market. The 25% tariffs imposed on new imported vehicles and parts do not directly affect used car sales. However, changes in new vehicle pricing, production, and demand have an indirect influence on the used vehicle market, where the majority of Americans purchase cars.
While retail prices generally follow wholesale trends, they have not decreased as quickly in recent years. In April, retail used vehicle sales were down by 1.7% compared to March but were still up 13% from the previous year. The average retail listing price for a used vehicle reached over $25,000, marking a 2% increase over the past four weeks. In contrast, new vehicles now average nearly $48,000.
Although the Manheim index remains below the record highs seen during the Covid pandemic, it still stands significantly higher than historical levels seen before the pandemic’s onset in 2020. Cox Automotive had previously noted that used vehicle prices were stabilizing after a period of volatility, and this stabilization trend continued into 2024, despite the current price spike driven by tariff concerns.
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