Used Car Prices Rise

Used Car Market Shake-Up

Lately, the used car market is feeling the heat from a new wave of tariffs on imported vehicles and parts. The rush is on as folks who were eyeing new cars are now considering used ones due to expected price increases on new models. This sudden jump in demand for used vehicles is causing their prices to rise and making inventories tighter than they’ve been in quite some time.

Sales Surge

According to some recent numbers from Cox Automotive, used vehicle sales jumped by 9% in March from February and were up 12% compared to last year. In fact, this March had the best retail used car sales figures since 2021. This trend is being driven partly by the tariff concerns and the extra cash people got back from tax refunds, with the average refund hitting $3,170 this year.

Tight Supply

In early April, the total used vehicle inventory at U.S. dealerships stood at around 2.14 million units, slightly less than March and 1% below last year’s numbers. What’s more, the days’ supply metric, which tracks how long cars sit on lots before they’re sold, has shrunk to just 39 days—significantly lower than usual for this time of year.

Challenges for Budget Buyers

Buyers looking for lower-priced cars, those under $15,000, are facing a tough time. These cars have just a 28-day supply, which is less than the overall average. This situation means fewer choices and older models with higher mileage are what budget-conscious shoppers must contend with.

Climbing Prices

After some stability earlier in the year, used car prices started creeping up again in March. The average listing price reached $25,180, slightly under the numbers from last year but pointing towards an upward trend. Experts warn if tariffs stick around or expand to include more parts, repair costs could rise, making used cars even more of a hot commodity.

Strong Brands

Brands like Ford, Chevrolet, Toyota, Honda, and Nissan are leading the charge as the fastest-selling used cars, making up 51% of all used vehicle sales. On average, these vehicles are listed under $24,000, about 6% less than the broader average.

Final Thoughts

People in the market, like Angelica DeLeon from Connecticut, are feeling the squeeze. After saving for two years, she’s got about $10,000 to spend but is finding slim pickings, with many cars having upward of 130,000 miles. She wonders, “What are you supposed to do when you’re making the minimum and you do need a car?” It’s a question many are beginning to face as the used car market, traditionally a haven for those watching their budgets, is tightening up. The longer these tariff tensions go on, the more strained the used car supply may become.