Used Car Prices Just Got Pricier And It’s Not Just Supply That’s To Blame

Consumers have been bracing for it, and now it’s happening: the cost of used cars is going up, and tariffs are playing a starring role. If you’re currently in the market for a used vehicle, you’ve probably noticed prices creeping upward. This shift had been widely predicted, and now we’re seeing clear signs of it playing out.

Cox Automotive says the Manheim Used Vehicle Value Index climbed to 208.2 last month, 2.7% higher than in March and 4.9% higher than a year ago. On top of this, the index hit its highest point since October of 2023.

More: Did You Rush To Buy A Car To Beat Tariff Price Hikes?

Cox pointed the blame at tariffs, with their Senior Director of Economic and Industry Insights Jeremy Robb saying, “We expected to see strong price appreciation in response to the tariffs, and that’s exactly what came.” Robb added that “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.”

While there was a surge of buyers in March and April, things could cool down as it’s believed some shoppers pulled ahead purchases to beat “expected higher prices due to tariffs.” However, the impact of this remains to be seen and tariffs will likely continue to be a factor moving forward.

Regardless, luxury vehicles and SUVs saw the biggest year-over-year price increases last month. Both were up more than 5%, while trucks climbed 2.5%. Sedans continued their unpopularity streak as mid-size cars were up a mere 0.8%, while compact car prices actually declined 1.5%.

Electric vehicles, which are often hit with steep depreciation, saw a bit of a rebound. Values were up 2.2% compared to March and have climbed 1.6% over the past year. Even so, non-EVs outpaced them with a 4.7% increase.

Aside from values, retail sales of used vehicles appear to have fallen 1.7% from March. However, they’re still up 13% compared to last year.