Study shows prices were up on the used car lot before tariffs took effect
of ConsumerAffairsApril 9, 2025
Key points
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1- to 5-year-old used cars experienced their first 12-month price increase since 2 years ago in October 2022
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The average 1- to 5-year-old used car cost $31,624 in March 2025, up 1% ($317) from a year ago
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Every major vehicle segment increased in price except electric vehicles and cars/minivans, which dropped $3,602 and $865, respectively
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Used car prices increased by 8.2% in just 8 months during the start of the pandemic, and with tariffs set to drive up both new and used car prices we could see a similar 5% to 10% price hike in the coming year
Tariffs on new imported cars are expected to push used car prices higher as well in the coming months, but in a stunning development, that increase has apparently already begun.
A new study from automotive website iSeeCars has found that prices of 1- to 5-year-old used cars have risen year-over-year for the first time since October 2022. The study found the average cost of a used car in this age range reached $31,624 in March 2025, marking a 1% increase, or $317, from the same time last year.
The upward trend was broad-based, affecting nearly all major vehicle segments. However, electric vehicles (EVs) and minivans bucked the trend, registering substantial price drops. EVs fell by $3,602, while cars and minivans decreased by an average of $865. These declines contrast with rising prices among SUVs and trucks, continuing a pattern of consumer preference and market value divergence.
Used car prices had been falling by as much as 7.3% in June 2024, said Karl Brauer, executive analyst at iSeeCars, in a press release accompanying the release of the study. But over the past six months, prices stabilized. Now theyre going up, and this is before tariffs have impacted new car pricing.
Tariffs could mean even higher prices
The March uptick in used car prices occurred just before new tariffs took effect on April 3. These tariffs are expected to inflate new car costs, a ripple effect that could send more buyers into the used car market, driving prices even higher.
Drawing parallels to the early stages of the COVID-19 pandemic, Brauer noted that used car prices jumped by 8.2% in just eight months in 2020 as factory shutdowns curtailed new vehicle production. A similar scenario could unfold this year, albeit for different reasons. Instead of supply chain disruption, its the cost increases tied to trade policy that could fuel the next spike.
If theres a similar pattern, we could see used car prices increase by another 5% to 10%, Brauer warned. That would translate to an additional $890 to $5,169 for popular models, according to iSeeCars projections.
For instance, a 5% increase would raise the price of a Kia Forte by nearly $900, while a 10% hike could add over $5,000 to the cost of a Chevrolet Tahoe.
Used car prices had remained relatively flat from October 2024 until this recent increase. The modest rise in March underscores an ongoing imbalance between supply and demand in the used car market. If new car prices surge, this disparity could grow, pushing more consumers toward used vehicles and intensifying upward pressure on prices.
With tariffs now active, this could be just the beginning, said Brauer.
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