In a report by Epoch Times on May 8, 2025, it was stated that a key indicator for measuring the prices of used cars in the United States saw a significant increase last month, reaching the highest level since October 2023. This surge in prices was attributed to consumers’ concerns about potential tariffs on automobiles leading to price hikes, prompting a rush to purchase vehicles.
The Manheim Used Vehicle Value Index, compiled by Cox Automotive, tracks the prices of used cars sold at the company’s wholesale auctions in the U.S. According to the data, the index rose by 4.9% compared to the same period last year, reaching 208.2 points.
Compared to March of this year, the index also saw a 2.7% increase. The automotive data and consulting company noted that this was a significant rise compared to the typical month-over-month index of 0.2% historically.
Jeremy Robb, Senior Director of Economic and Industry Insights at Cox Automotive, stated in a press release on Wednesday, May 7, that the “spring rebound” typically ends in the second week of April. However, this year, the trend of price appreciation in the wholesale market continued throughout the month, much stronger than what is normally observed. They anticipate that tariffs will lead to a strong price increase, as expected.
In early April, U.S. President Trump announced a 25% tariff on imported cars. Robb mentioned that this not only impacted new car prices but also drove up the prices of used cars. In April, luxury cars and Sports Utility Vehicles (SUVs) saw the largest price increases compared to the same period last year, rising by 5.9% and 5.5% respectively. The only category to see a price decrease was compact sedans, with a 1.5% drop.
Dealers’ spending on purchasing used cars in April increased by 3.3% compared to the previous month, and by 4.3% compared to the same period last year. Normally, wholesale used car prices increase by around 0.3% per month.
According to Cox Automotive, the wholesale prices paid by dealers usually reflect in the retail prices for consumers within four to six weeks.
Robb mentioned that the sales of used cars in April were stronger than usual, as customers rushed to buy vehicles before the tariffs took effect. This reduced the available inventory of used cars for purchase and prevented the usual depreciation of used car retail prices.
Cox Automotive’s report indicated that the retail volume of used cars in April decreased by 1.7% compared to March, but increased by 13% compared to the same period last year. In the past four weeks, the average retail listing price of used cars rose by 2%, exceeding $25,000. In contrast, the average price of new cars was close to $48,000.
(This article was referenced from CNBC’s report)