Used Vehicle Prices on Rise in U.S., a First in Two Years
It was widely predicted that used vehicle prices would rise if U.S. auto imports were implemented and remained in place for any length of time. The first signs of repercussions are now becoming apparent.
Increased demand for second-hand vehicles is a logical consequence of higher new-vehicle prices, of course. Estimates are that those prices could climb by anywhere between $3,000 and $20,000 USD.
According to iSeeCars, March saw the first increase in the average price of a used vehicle in the U.S. in two years. The group used data for vehicles aged one to five years. The information is based on the price analysis of more than 1.4 million vehicles.
Recall that the pre-owned market exploded coming out of the pandemic, a trend exacerbated by a shortage of semiconductors that hampered the supply of new vehicles. All of that sent vehicle shoppers streaming into the used-car market.
iSeeCars analyst Karl Brauer explains that “During the pandemic, new vehicle prices soared when auto factories shut down and production didn't meet demand. With tariffs, prices will likely increase regardless of demand, leading to a similar rise in new vehicle prices that could push used car prices higher.”
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