US Secondhand Car Prices on the Rise, Monthly Sales Soar by 9%

The used car market in the United States has recently seen a widespread increase in prices and a significant rise in sales, influenced by factors such as inventory, tariffs, and seasonality.

According to statistics from the automotive industry website CarGurus, the average price of used cars has risen from $26,919 on February 13 to $27,592 on April 13 in the past two months, an increase of $673. As of the past 30 days until April 15, the CarGurus used car price index has gone up by 2.17%, with the average price of popular brands among Chinese consumers like Lexus increasing by 1.77%. The only brand that saw a decrease in price was Tesla, with a decline of 1.21%.

Research from automotive data and consulting company Cox Automotive also shows the warming trend in the used car market: compared to February, sales in March surged by 9%, a 12% increase from the same period last year.

The increase in used car prices is believed to be a chain reaction of pre-tariff panic buying of new cars.

Erinda, a broker at a Lexus dealership in the Los Angeles metropolitan area, mentioned that they received a notification of used Lexus price increases last week. Following the notification, prices for used cars retailing for under $25,000 were raised by $500, while the good news is that prices for new Lexus cars have not increased yet.

“It’s probably because new car prices are about to go up, which has caused a stir in the used car market,” Erinda said. Many buyers are turning to more cost-effective used cars due to concerns about high new car prices. Besides the price advantage, the insurance costs for used cars are also much lower, significantly reducing the financial burden on buyers.

Srinidhi Melkote, Vice President of Business Analysis at the used car data company CarFax, stated in a recent company press release that the increasing economic uncertainty (i.e., automotive tariffs) has driven a surge in demand for new cars, pushing up their prices and reducing supply, leading some consumers to turn to used cars for more affordable options.

However, even without the tariff factor, used car prices typically rise around this time of year. With the traditional tax filing season ending on April 15, some households have already received tax refund checks, boosting the purchasing power of average families.

In addition to the typical tax season impact, the decline in production and sales of new cars since the 2020 pandemic has led to a shortage of used car inventory, also contributing to price hikes.

vAuto, a subsidiary of Cox providing inventory and market analysis to automotive dealers, reported that the supply of used cars nationwide decreased from 43 days in early March to 39 days by the end of March.

According to automotive news, reviews, and purchase guide website Autoblog, the inventory of used cars at U.S. dealerships in early April was 2.14 million, slightly lower than the previous month and down 1% from the same period last year. Vehicles priced below $15,000 have a supply of only 28 days, 7 days less than last year and 11 days lower than the industry average.

The top five fastest-selling used car brands this month are Ford, Chevrolet, Toyota, Honda, and Nissan, collectively accounting for over half of total sales and averaging slightly less than $24,000.

CarFax forecasts that due to the impact of automotive tariffs, the production of new cars may continue to decline in the coming months, leading more people to turn to used cars and driving up prices further; the entire automotive market is expected to thrive.

The United States began imposing a 25% tariff on imported cars on the 3rd of this month, with tariffs on imported automotive parts originally set to be levied at 25% in early May. However, President Trump stated on Monday (the 14th) that he is considering temporarily exempting automotive and parts tariffs to give companies more time to establish production facilities in the U.S. If the exemption policy is implemented, it will greatly alleviate concerns about car price hikes.