by What consumers expected has finally become a reality: used car prices are rising rapidly, and customs duties play a significant role in this. If you are currently looking for a car, you have probably already noticed this trend. Such changes were predicted long ago, and now we are seeing their impact on the market.
According to Cox Automotive, the Manheim Used Vehicle Value Index in April reached 208.2, which is 2.7% higher than in March and 4.9% higher than last year’s figures. Furthermore, this is the highest level since October 2023.
Cox experts explain the situation by the introduction of customs duties. Jeremy Robb, senior director of economic and industry research, noted: “We predicted a sharp price increase due to tariffs, and that is exactly what is happening now.” He also added that “used car sales remain higher than usual, and the supply on the wholesale market has somewhat decreased, so depreciation in the second quarter is likely to be lower.”
Although a surge in purchases was observed in March and April, activity may decline as some customers rushed to make purchases trying to avoid future price hikes. However, the real impact of this factor is not yet fully understood, and tariffs will continue to affect the market.
Premium cars and SUVs demonstrated the highest annual price growth – over 5%. Trucks became more expensive by 2.5%, while sedans remain unpopular: mid-size models increased by only 0.8%, and compact cars even became cheaper by 1.5%.
Electric vehicles, which usually depreciate quickly, this time showed a slight recovery. Their price increased by 2.2% compared to March and by 1.6% on an annual basis. However, conventional cars still outperformed them with a rate of 4.7%.
In addition to price changes, retail sales of used cars in April decreased by 1.7% compared to the previous month. However, on an annual basis, sales volumes are still 13% higher.
