FX.co ★ Used Car Prices in the US Surge in April Due to Tariffs

In April 2025, the Manheim Used Vehicle Value Index for the United States rose by 2.7% month-over-month, marking its first increase in three months and the most significant since July 2024. This rise was driven by a tariff announcement made in early April. "Typically, the 'spring bounce' concludes by the second week of April, but this year, the trend of wholesale price appreciation persisted throughout the month. We anticipated a strong price rise in response to the tariffs, and that's precisely what occurred," remarked Jeremy Robb, who serves as the Senior Director of Economic and Industry Insights at Cox Automotive. Notably, prices increased across various categories: SUVs by 2.4%, trucks by 2.1%, mid-size sedans by 2.2%, luxury vehicles by 1.5%, and compact cars by 0.8%. On a year-over-year basis, used car prices climbed by 4.9%, the highest since August 2022. Robb further commented, "As we enter the latter half of the year, the automotive market might decelerate as the strong demand seen recently could have advanced some transactions to March and April, with buyers aiming to circumvent anticipated price hikes due to the tariffs."