Why Are Used Car Prices INCREASING So Quickly in 2025?

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If you’ve been browsing used car lots or checking online listings, you’ve likely noticed prices are climbing rapidly. According to Cox Automotive’s Manheim Used Vehicle Value Index, wholesale used car prices in April 2025 hit their highest level since October 2023, surging 4.9% year-over-year to 208.2. That’s a 2.7% jump from March alone, far exceeding the typical 0.2% monthly increase. What’s driving this price surge? A combination of new auto tariffs, shrinking supply, and changing consumer behavior is shaking up the used car market. Let’s explore why prices are rising, how tariffs are contributing, and how you can navigate this expensive new reality.

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