MenuMENU
SearchSEARCH

Tariffs Pump Up Prices

Both new and used vehicle values increased in April.

May 12, 2025
Tariffs Pump Up Prices

New- and wholesale used-vehicle prices rose in April as consumers tried to avoid tariff-fueled inflation.

Credit:

Pexels/Vadutskevich

2 min to read


Both new and wholesale used vehicle prices jumped in April on the effect of U.S. trade tariffs.

New-vehicle prices, already still inflated from pandemic days, were up about 3% month-over-month to an average transaction figure of $48,699, according to Cox Automotive data. 

That’s up from a typical 1% bump for April and is similar to the increase seen in April 2020, the spring of the initial pandemic market disruptions. The average transaction price was up 1% year-over-year, said Cox, which pointed out that since inventory has rebounded from the pandemic, year-over-year prices have been flat as the market normalized. 

Despite the price bump, the April sales pace was the most robust in four years as consumers rushed to beat expected tariff-driven price increases. Incentives were consequently flat at about 7%, their lowest since last summer.

Meanwhile, wholesale used-vehicle prices jumped for the month. Cox’s Manheim Used Vehicle Value Index surged 5% year-over-year to 208, its highest point since October 2023.

“The ‘spring bounce’ normally ends the second week of April, but this year, wholesale appreciation trends continued for the entire month and were much stronger than we typically observe,” said Senior Director of Economic and Industry Insights Jeremy Robb. “We expected to see strong price appreciation in response to the tariffs, and that’s exactly what came.”

Prices rose throughout the month except for the last week, which saw slower price declines than normal for April’s wind-down.

Though the average daily conversion rate for the month hit about 64%, down from March, it ran higher than typical for April, said Cox, which put the three-year average at 59%.

Retail used sales, though down about 2% from March, were up 13% year-over-year, according to Cox data. The average listing price was up 2% for the month.

More Industry

man holding up car keys
Industryby Lauren LawrenceJanuary 9, 2026

2026 Consumer Priorities Revealed

The Global Automotive Consumer Study shows that U.S. car shoppers value in-person dealership visits, crave more affordability, and are still hesitant about EV adoption.

Read More →
Split picture. Toyota on left. Lexus on right.
Industryby Lauren LawrenceJanuary 5, 2026

Dealer Survey Shows Increased Optimism

The 2025 Kerrigan Dealer poll reports the first improvement in valuation expectations since 2021, with 24% of dealers expecting an increase this year, up 41%.

Read More →
Industryby Hannah MitchellJanuary 5, 2026

Kia Trumpets Banner Year

2025 U.S. sales broke brand records despite the pressure of U.S. tariffs on imports, smaller models and electrified vehicles leading the surge.

Read More →
Ad Loading...
Vintage convertible driving along a desert highway, capturing the freedom and cultural impact of early American car travel.
IndustryJanuary 1, 2026

Driving America Forward

As America turns 250, explore how the automotive industry shaped jobs, culture, innovation, and mobility from Detroit assembly lines to today’s EV era.

Read More →
Industryby Hannah MitchellDecember 24, 2025

Top 10 Auto Dealer Today Stories of 2025

Our readers spent the most time on our site keeping abreast of vehicle quality rankings and recalls while researching best practices and legal requirements.

Read More →
Industryby StaffDecember 23, 2025

Black Book: Weekly Market Update

Despite the week's softening conditions, the market analyst said demand for used vehicles showed in competitive bidding for newer units in better condition.

Read More →
Ad Loading...
Industryby Lauren LawrenceDecember 23, 2025

In-Vehicle AI Predicted to Spike

Frost & Sullivan expects a $238 billion market opportunity for the technology in automobiles by 2030 as AI applications shift to more mass-market applications.

Read More →
Industryby Hannah MitchellDecember 23, 2025

December Doldrums

A consumer index finds continued declines in both outlook and current conditions sentiment across nearly all demographics as big-ticket spending plans fall.

Read More →
Industryby Hannah MitchellDecember 19, 2025

Illinois Dealership Traded

A growing auto group picked up the Toyota franchise from retiring family owners.

Read More →
Ad Loading...
Mercedes-Benz Chief Design Officer Gorden Wagener
Industryby Lauren LawrenceDecember 18, 2025

Longtime Mercedes Design Chief Steps Down

Over 28 years with the German automaker, Gorden Wagener has made long-lasting impacts on its vehicles' look.

Read More →