A key indicator for used vehicle pricing surged last month to its highest point since October 2023, driven by consumer concerns over impending auto tariffs. Cox Automotive’s Manheim Used Vehicle Value Index, which monitors prices at U.S. wholesale auctions, rose 4.9% compared to the previous year, reaching a level of 208.2. This represents a significant 2.7% increase from March, far exceeding the typical month-to-month change of 0.2%. According to Jeremy Robb, senior director of economic and industry insights at Cox Automotive, the usual ‘spring bounce’ extended throughout April this year, showing stronger trends than usual. Although the 25% tariffs on imported vehicles and parts do not directly affect used car sales, shifts in new vehicle dynamics influence the used car market, where most Americans buy their vehicles. Retail prices generally follow wholesale trends but have not decreased as swiftly in recent years. In April, retail used-vehicle sales dropped 1.7% compared to March but increased 13% year-over-year. The average retail listing price for a used vehicle climbed 2% to over $25,000, contrasting with nearly $48,000 for a new vehicle. While the Manheim index is below its pandemic peak, it remains relatively high compared to pre-2020 levels. — new from CNBC
