Used vehicle pricing barometer jumps to highest level since 2023 amid auto tariffs

DETROIT — A intently watched barometer for used vehicle pricing jumped final month to its highest level since October 2023 as customers rushed purchases amid fears of value hikes due to auto tariffs.

Cox Automotive’s Manheim Used Vehicle Worth Index — which tracks costs of used autos offered at its U.S. wholesale auctions — elevated 4.9% final month in contrast with a 12 months earlier to a level of 208.2.

It additionally marked a 2.7% improve from March. That is a big rise in contrast with a traditionally typical month-to-month index transfer of 0.2%, in accordance to the auto knowledge and logistics agency.

“The ‘spring bounce’ usually ends the second week of April, however this 12 months, wholesale appreciation traits continued for the whole month and have been a lot stronger than we sometimes observe,” mentioned Jeremy Robb, Cox Automotive senior director of financial and trade insights. “We anticipated to see robust value appreciation in response to the tariffs, and that is precisely what got here.”

Whereas the tariffs of 25% on new imported autos and plenty of elements don’t straight impression used automotive gross sales, adjustments in new vehicle costs, manufacturing and demand have an effect on the used automotive market, which is how nearly all of People buy a vehicle.

Retail costs for customers historically comply with adjustments in wholesale costs, however they haven’t fallen as rapidly as wholesale costs lately.

Cox experiences retail used vehicle gross sales in April have been down 1.7% in contrast with March however larger 12 months over 12 months by 13%. During the last 4 weeks, the common retail itemizing value for a used vehicle elevated by 2% to greater than $25,000, Cox mentioned. That compares with a brand new vehicle at almost $48,000.

The Manheim index stays off the report highs it hit in the course of the Covid pandemic however remains to be comparatively excessive in contrast with historic ranges earlier than the onset of the worldwide well being disaster in 2020.

Cox beforehand mentioned it was seeing used vehicle costs proceed to stabilize after swinging wildly for a number of years earlier than beginning to relax in 2024.