Used car prices will rise to the highest level since 2023 as car prices hit buyers
General Motors CEO Maryborough reveals what she’s looking forward to new car rates and how the company will adhere to Trump administration’s leadership during a wide range of interviews about “Morning with Maria.”
Used car buyers are priced higher as the auto market adapts to the president Donald Trump’s 25% tariff on automobile imports.
Used car prices Mannheim’s vehicle index rose to 208.2, which was significantly higher in April than in March, resulting in a 2.7% increase from March and 4.9% higher than last year. This is the best reading of the index since October 2023.
“We are pleased to announce that Jeremy Robb, senior director of economic industry insights at Cox Automotive,” said Jeremy Robb, senior director of economic industry insights. “Weekly trends showed higher value as we passed the month, but they tapered from each successive week.”
“Used retail sales remain stronger than normal and wholesale day supply is a bit tight, so there could be less depreciation than normal over the second quarter.
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Prices for used cars jumped the most in April since 2023 due to customs duties, the report found. (Jim Watson/AFP via Getty Images/Getty Images)
Retail sales of used cars in April fell 1.7% from March, but 13% higher than a year ago. In the past four weeks, Average Retail List Price For used cars, the report rose 2%.
Sales of the new vehicle were 11.1% higher in April than a year ago, as concerns about tariffs that would rise in prices spurred sales in the second half of the year, but volume fell 8% from an even stronger march.
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Customs duties can increase the price of used cars by constraining the supply of new cars and increasing the costs of those vehicles. (Fox Business / Fox News)
Earlier this year, Trump announced 25% tariff on imported vehicles It was scheduled to take effect on April 2, with another 25% tariff on imported auto parts set to take effect on May 3.
On April 29th, the president signed an executive order changing automobile fares by providing an offset to some of the tariffs on auto parts, which amounted to 3.75% of the manufacturer’s proposed retail price (MSRP) in the following year, and 2.5% of the tariffs on auto parts, which amounted to 3.75% of the manufacturer’s proposed retail price (MSRP).
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The White House said the move “will amend tariff measures on cars and auto parts by encouraging manufacturers to assemble cars in the United States, thereby reducing American reliance on foreign imports of cars and auto parts.”
Aislinn Murphy of Fox Business contributed to this report.