The negative impact of tariffs is showing! The prices of second-hand cars in the United States have soared to a year and a half new high.

With American consumers worried that car tariffs could lead to price hikes, many have started purchasing cars early, leading to a strong rebound in the U.S. used car market. The Manheim Used Vehicle Value Index, released by renowned automotive data firm Cox Automotive, soared to 208.2 points in April, reaching its highest level since October 2023. This index tracks the prices of used cars sold by Cox at wholesale auctions in the United States. The data shows that the index rose by 4.9% year-on-year in April and by 2.7% month-on-month. Compared to the usual monthly fluctuations of around 0.2%, this increase can be described as "exceptionally strong." Jeremy Robb, Senior Director of Economic and Industry Insights at Cox Automotive, stated, "Normally, the 'spring rebound' ends in the second week of April, but this year the wholesale prices continued to rise throughout the entire month, far exceeding previous levels. We had long anticipated that tariff news would drive prices higher, and that has indeed happened." Although the 25% tariff on imported new cars and parts does not directly apply to used cars, fluctuations in new car prices, changes in production capacity, and shifts in demand can indirectly affect the used car market, which remains the primary choice for most Americans when purchasing a car. While wholesale prices often lead changes in retail prices, in recent years the speed of retail price declines has not been synchronized with wholesale prices. Data from Cox shows that used car retail sales in April decreased by 1.7% compared to March, but increased by 13% year-on-year. During the same period, the average listing price of used cars rose by 2%, surpassing $25,000, while the average price of new cars approached $48,000. Although the current Manheim index is still lower than the historical records during the peak of the pandemic, prices remain relatively high compared to the period before the COVID-19 outbreak in 2020. Cox had previously stated that after several years of drastic fluctuations, used car prices began to stabilize in 2024. Amidst economic uncertainties and policy factors, the U.S. used car market is once again becoming a focal point for investors and consumers, especially in the context of unclear tariff policies. The price trends in the coming months are still worth closely monitoring.