With car prices shifting due to tariffs and low inventory, now may be a pivotal moment to buy, sell, or trade your vehicle. We break down the latest trends—backed by market data and expert advice—to help you get the best deal.
Why Prices Are High (and Still Rising)
Recent tariffs have triggered a sharp spike in used-car values. The Manheim Used Vehicle Value Index hit its highest point since October 2023, rising 6.3% year-over-year in June 2025 — the fastest growth since 2022.
Wholesale auction prices also bounced back in April, suggesting used-car costs are climbing across the board :contentReference.
New vs. Used: It's Complicated
Despite the 25% import tariffs on new cars, June prices stayed “remarkably stable,” at ~$48,900 — just a modest increase month-over-month :contentReference. This stability is temporary, though: tariffs may soon force higher MSRP once inventories dip.
Meanwhile, used-car prices are also rising. The average buyer paid around $25,547 in April—a jump of $367 from March—as shoppers shift toward used vehicles to avoid tariff-driven markups.
Should You Buy Now?
- New Car Pros: Current inventories still reflect pre-tariff pricing. If the model you want is in stock, now may be the best time to buy before prices go up :contentReference[oaicite:5]{index=5}.
- Used Car Pros: Used cars are not subject to tariffs, and as new-car budgets tighten, demand—and prices—for used cars may keep climbing.
Sell or Trade-In Now?
For sellers, the tight used-car market makes this a strong time to cash in. Dealers are more eager for trade-ins, often offering prime values to restock.
How to Navigate Today’s Car Market
- Broaden your search: Look across cities or regions to find better deals.
- Act fast if bargain-shopping: Pre-tariff models are moving quickly—consider securing a refundable deposit.
- Focus on U.S.-assembled models: Some automakers are holding prices stable on domestic models.
- Discuss trade-in and sale timing: If your vehicle is in demand, sell now. If you're buying, time it just right to avoid tariff recalls.
Extend Your Car’s Value with Fresh Auto Pal Accessories
- Floor mats & windshield shades – protect your investment and retain resale appeal
- Interior cleaning kits – maintain showroom-level cleanliness
- Emergency tools & diagnostics – be ready for whatever the road brings
- Phone mounts & cup holders – upgrade comfort and functionality
Act smart, shop savvy—and equip your ride with durable accessories from Fresh Auto Pal.
Used Car Trade-In Value Calculator