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Consumer Daily Reports

New and used car prices are already rising, industry firm reports

By Mark Huffman Consumer News: Used car sales surged just before the tariffs of ConsumerAffairs
April 7, 2025

There was a massive amount of car-buying just ahead of President Trumps announcement of a 25% tariff on imported vehicles. Used vehicle movement rose by 32% month-over-month in March to 1.53 million units, the highest used vehicle monthly total since ZeroSum started collecting data seven years ago.

"The tariff-related sentiment among consumers appears to have gone from a looming concern to an imminent reality, which is accelerating purchases among in-market shoppers," said Josh Stoll, vice president of Dealer Success at ZeroSum, in a press release.

"While the scope and duration of those vehicle and parts tariffs are an unknown at this point, they certainly have roiled the waters in the industry. Dealers that closely monitor the supply, demand, and pricing cross-currents and can quickly and effectively act upon these market dynamics will be better positioned to thrive in this market."

According to ZeroSum, vehicle prices are already beginning to rise. Average Marketed Prices for new vehicles rose for the first time in five months, moving from $48,635 at the end of February to $49,579 on March 31, an increase of $944.

One factor in that increase is that discounts and incentives fell. March 31 Market Adjustments were $432 less aggressive compared to February 28.

Prices are rising

The sharp rise in used vehicle demand is also causing corresponding price increases. After steadily falling the past four months, used vehicle Average Marketed Prices moved up sharply. March 31 vs. February 28 prices rose by $988.

"The historically high used vehicle movement numbers point to this market sector acting as a safe haven plan B for a consumer base that has been struggling with high new vehicle prices," said Stoll.

"And with those new vehicle prices already heading upward and potentially about to go much higher, used vehicles should be an important part of every dealer's priorities. Promoting and highlighting that inventory and pricing it competitively in the local market will be more important than ever given the broader marketplace dynamics that are currently in place and potentially influx."

Jaguar's move

The automotive tariffs are already beginning to affect the market. Over the weekend Jaguar announced that it will suspend imports to the U.S. of Jaguar and Land Rover vehicles.

The company called it a short-term decision and said it will begin working on a long-term strategy to deal with the new trade environment.

The USA is an important market for JLRs luxury brands, the company said in a statement to the media.

As we work to address the new trading terms with our business partners, we are taking some short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans.

Sign up below for The Daily Consumer, our newsletter on the latest consumer news, including recalls, scams, lawsuits and more.




Posted: 2025-04-07 11:20:58

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Published: 1st May 2025 08:00:23   By: Great Home Ideas

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