General Motors CEO Mary Barra shared her thoughts on future car prices and the company’s alignment with the Trump administration during a series of discussions on “Morning with Maria.”
Buyers looking for used cars will notice that prices have risen as the market adjusts to the 25% tariffs on car imports set by President Donald Trump.
Mannheim’s vehicle index reached 208.2, indicating that used car prices in April were much higher than those in March, marking a 2.7% increase from the previous month and a 4.9% increase from last year. This is the highest reading since October 2023.
“We’re excited to announce that Jeremy Robb, senior director of economic industry insights at Cox Automotive,” mentioned Jeremy Robb. “Weekly trends indicated rising values as the month progressed, although they did decrease gradually each week.”
“Retail sales of used cars remain above average, and wholesale supply is somewhat limited, which might lead to less depreciation than usual in the second quarter.
Mercedes is expanding its operations in Alabama thanks to Trump’s relaxed car tariffs
Prices for used cars saw a notable increase in April, the greatest since 2023, primarily due to the customs duties.
Retail sales of used cars declined by 1.7% from March, yet were 13% higher compared to a year ago. In the last month, the average retail price for used cars rose by 2%, according to the report.
New vehicle sales increased by 11.1% in April when compared to last year, driven in part by concerns that tariffs would cause prices to rise later this year; however, sales volume dropped by 8% from what was already a strong March.
Trump’s 25% import duties on cars: Here’s how manufacturers are impacted
Customs duties are affecting used car prices by limiting the supply of new cars and increasing their manufacturing costs.
This year, Trump announced a 25% tariff on imported vehicles, effective from April 2, with an additional 25% tariff on imported auto parts set to start on May 3.
On April 29, the president signed an executive order modifying vehicle tariffs, providing adjustments to some of the auto part tariffs, equivalent to 3.75% of the manufacturer’s suggested retail price (MSRP) for the following year and 2.5% for the auto parts tariffs.
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The White House stated this action “will revise tariff policies on vehicles and parts by motivating manufacturers to produce cars in the U.S., thereby decreasing dependence on foreign imports.”
