Prices for used gas cars have risen for the first time in two years, while electric vehicle prices continue to drop rapidly | Carscoops

      Prices for used cars are expected to continue rising if the Trump administration keeps imposing significant tariffs on imported vehicles and components.

      April 20, 2025, at 20:35

      by Stephen Rivers

      Used vehicles that are under five years old have just experienced their first price increase since late 2022.

      The 1% increase signals the beginning of potential price hikes in the used-car market.

      One analysis likens this trend to the substantial price surge of used cars in 2020.

      It is well-known that new vehicles are becoming increasingly expensive. Prices are steadily rising, even as advancements in technology and manufacturing methods occur. Until recently, however, the used-car market presented a different scenario. Prices had either been declining or remaining stable, providing buyers with some relief. But now, that may be changing. A recent study indicates that, for the first time since 2022, used-car prices are once again on the upswing, with potentially more increases on the horizon.

      More: The True Victims of Trump’s Tariffs May Be American Automakers Themselves

      This change signifies a marked departure from the trend observed over the past few years. Used cars had become more affordable, including a 7.3% decrease in prices in June 2024. For about six months afterward, their prices remained stable, close to their overall value from a year earlier. Unfortunately, this is no longer the case.

      A Modest Increase, But a Possible Warning Sign

      As per a recent iSeeCars study, the average price of used vehicles aged one to five years is currently one percent higher than it was a year ago, equating to an average increase of approximately $317. While this figure may not seem alarming on its own, it could signify the onset of a larger trend, particularly when considered in context.

      SUVs experienced the most significant overall increase at 3.5 percent, followed by trucks at 0.9 percent and hybrids at 0.7 percent. Conversely, two segments have seen price declines: electric vehicles are down 10.1 percent, and passenger cars, including minivans, have decreased by 3.2 percent.

      USED CAR PRICES (1-5 YEAR OLD)

      iSeeCars Executive Analyst Karl Brauer suggests that this upward pricing trend is unlikely to diminish in the near future. “Now used car prices are increasing, and this is before tariffs have affected new car pricing, which will further exert upward pressure on both new and used car prices,” he stated. This implies that unless there is a shift in policy from the Trump administration, the trend may worsen in the upcoming months.

      Automakers are already striving to offset the costs associated with the new tariffs. Some have even opted to halt exports to the United States entirely, resulting in a limited inventory for customers. With no signs of decreasing demand, it is logical that prices will continue to rise.

      USED CAR PRICES (1-5 YEAR OLD MARCH 2025)