US Used Vehicle Prices Surge 6.3% Amid Tariff-Driven Volatility

Wholesale used-vehicle prices in the US surged in June 2025, with the Manheim Used Vehicle Value Index rising 1.6% month-over-month and 6.3% year-over-year, reaching its highest level since October 2023. This increase is largely attributed to tariffs imposed by President Donald Trump on imported vehicles, which disrupted new vehicle sales and supply chains, causing volatility in the used vehicle market. Luxury vehicles and SUVs saw significant price hikes, with used electric vehicles (EVs) experiencing the fastest growth, rising 12.1% year-over-year, over double the rate of internal combustion engine vehicles. Despite a slight dip in non-seasonally adjusted prices from May, the overall upward trend reflects strong retail demand and a tightening supply, including fewer vehicles coming off lease. The pandemic-era disruption of new car production has had a lingering effect, leading to substantially higher prices for late-model used cars, with the average price for a 3-year-old used car rising by nearly 41% since 2019, making affordable used cars increasingly scarce. These factors combine to create sustained price pressures in the US used car market, with no immediate signs of relief.