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Tariffs Pump Up Prices

Both new and used vehicle values increased in April.

May 12, 2025
Tariffs Pump Up Prices

New- and wholesale used-vehicle prices rose in April as consumers tried to avoid tariff-fueled inflation.

Credit:

Pexels/Vadutskevich

2 min to read


Both new and wholesale used vehicle prices jumped in April on the effect of U.S. trade tariffs.

New-vehicle prices, already still inflated from pandemic days, were up about 3% month-over-month to an average transaction figure of $48,699, according to Cox Automotive data. 

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That’s up from a typical 1% bump for April and is similar to the increase seen in April 2020, the spring of the initial pandemic market disruptions. The average transaction price was up 1% year-over-year, said Cox, which pointed out that since inventory has rebounded from the pandemic, year-over-year prices have been flat as the market normalized. 

Despite the price bump, the April sales pace was the most robust in four years as consumers rushed to beat expected tariff-driven price increases. Incentives were consequently flat at about 7%, their lowest since last summer.

Meanwhile, wholesale used-vehicle prices jumped for the month. Cox’s Manheim Used Vehicle Value Index surged 5% year-over-year to 208, its highest point since October 2023.

“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,” said Senior Director of Economic and Industry Insights Jeremy Robb. “We expected to see strong price appreciation in response to the tariffs, and that’s exactly what came.”

Prices rose throughout the month except for the last week, which saw slower price declines than normal for April’s wind-down.

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Though the average daily conversion rate for the month hit about 64%, down from March, it ran higher than typical for April, said Cox, which put the three-year average at 59%.

Retail used sales, though down about 2% from March, were up 13% year-over-year, according to Cox data. The average listing price was up 2% for the month.

Originally posted on Auto Dealer Today

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