P&A Providers & Administrators
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. 

Ad Loading...

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.

Ad Loading...

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.

Originally posted on Auto Dealer Today

More Industry

Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →
Headshot photo of Antonio Filosa, Stellantis CEO
Industryby Hannah MitchellMay 19, 2026

Stellantis to Dive Into U.S. Lending

The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.

Read More →
Photo of the rear of a new BMW iX SUV
Industryby Hannah MitchellMay 12, 2026

New-Vehicle Prices Rise

With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.

Read More →
Ad Loading...
Graphic of car segments' results the previous week
Industryby StaffMay 12, 2026

Black Book: Weekly Market Update

Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.

Read More →
Graphic of last week's estimated used retail days to turn
Industryby StaffMay 6, 2026

Black Book: Weekly Market Update

Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.

Read More →
cargo ship with vehicles, at dock
Industryby Lauren LawrenceMay 5, 2026

EU Auto Association Urges Action

Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.

Read More →
Ad Loading...
two people working on a paper contract together
IndustryMay 1, 2026

Driving into the Super CFC Era

Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.

Read More →