DETROIT — In a notable development for the automotive industry, a key indicator of used vehicle prices surged in April, reaching its highest point since October 2023. This increase comes as consumers intensified their purchases amid concerns over potential price increases linked to auto tariffs.
The Manheim Used Vehicle Value Index published by Cox Automotive measures prices from used vehicles sold through its U.S. wholesale auctions. The index recorded a remarkable 4.9% rise in comparison to last year, climbing to a level of 208.2.
Additionally, the index indicated a 2.7% increase from March, diverging significantly from the typical month-to-month change of about 0.2%, as noted by the data and logistics firm.
“The usual ‘spring bounce’ typically wraps up by the second week of April, but this year, we observed stronger wholesale appreciation trends that persisted through the month,” remarked Jeremy Robb, senior director of economic and industry insights at Cox Automotive. “We anticipated substantial price increases due to the tariffs, and that expectation has materialized.”
Though the newly imposed tariffs of 25% on imported vehicles and various parts do not directly affect used car sales, fluctuations in the pricing, production, and demand for new vehicles can significantly influence the used car market, which remains the primary avenue through which many Americans acquire their vehicles.
Traditionally, retail prices for consumers mirror the changes in wholesale prices; however, in recent years, they have not adjusted downward as swiftly as wholesale prices.
According to Cox, retail used-vehicle sales in April experienced a decline of 1.7% from March, yet showed an increase of 13% year-over-year. Over the past four weeks, the average retail listing price for used vehicles rose by 2%, surpassing $25,000. This figure stands in stark contrast to the nearly $48,000 price tag for new vehicles, as reported by Cox.
While the Manheim index still falls short of the record highs witnessed during the COVID-19 pandemic, it continues to remain relatively elevated compared to pre-pandemic levels from 2020.
Cox has previously indicated a trend toward stabilization in used vehicle prices, following years of volatility, with a continued calming phase expected through 2024.
