Used Car Prices Are Starting To Skyrocket

A rush on new vehicles ahead of President Trump’s import tariffs and expected vehicle shortages have already started pushing up prices on used cars.

According to the latest Manheim Index report, April wholesale prices were up 4.3% from the same month last year and 2.7% from March.

“Wholesale markets were not as strong as usual in March, but they turned on a dime the last week of the month and into early April as tariffs were implemented,” Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive said in a news release.

“In the first two weeks of April, we’ve seen much stronger sales conversion and pricing trends at Manheim, as dealers look to replenish inventory on the back of higher used retail demand.”

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In just the last two weeks, the Three-Year-Old index rose 2.5% compared to a normal level of a .2% increase on the long-term average. SUVs saw the largest year-over-year change at 5.1% followed by luxury vehicles (4.7%) and pickups (2.3%), with compact cars being the only segment with a decline at -.8%. The average increase for all electric vehicles was just .8%.

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Retail prices typically lag wholesale prices by about six weeks, so consumers may not be feeling the full impact of the increased prices just yet.