This marks the first rise in more than two years, and it might escalate significantly further.
You likely recall the chaos that unfolded in the automotive industry during the COVID-19 scare and subsequent supply chain disruptions several years back. With fewer new cars available, used car prices skyrocketed. After the markets settled, these expenses dropped again. This has been the case for approximately the past two-and-a-half years.
Currently, due to U.S. President Trump's fluctuating tariffs causing uncertainty in the automotive market once again, the prices of used cars are changing direction. iSeeCars study shows a slight uptick in used vehicles less than five years old. It's just one percent for now—equating to an average increase of $317. But this change is coming before the full effect of automotive tariffs step into action, and I See Cars Executive Analyst Karl Brauer thinks prices will rise further.
Due to the pandemic, new car prices surged as auto plants shut down and supply couldn't meet the demand," explained Brauer. "Adding tariffs would probably cause prices to rise irrespective of demand, leading to another sharp increase in new car costs which might also boost used car prices.
When we look at the figures, the report indicates that the average cost of a used car in March 2025 was $31,624. This figure represents the mean value across all vehicles aged between one and five years. Breaking down these costs by category reveals that SUVs experienced the most significant rise. There has been only slight growth observed among trucks and hybrid models; however, cars, minivans, and electric vehicles continue to see declines. These insights were derived from analyzing more than 1.4 million automobiles.
| Vehicle Segment | Average Cost - March 2025 | Year-Over-Year Difference (USD) | Year-Over-Year Difference (Percent) |
| SUVs | $32,258 | +$1,098 | +3.5% |
| Trucks | $38,443 | +$337 | +0.9% |
| Hybrids | $30,499 | +$225 | +0.7% |
| Cars / Minivans | $26,400 | -$865 | -3.2% |
| EVs | $32,107 | -$3,602 | -10.1% |
At present, the main issue revolves around how tariffs and market volatility might impact the pricing of used cars. This uncertainty stems primarily from the ongoing tariffs, currently set at 25 percent for all vehicle imports into the U.S., a rate that was effective when this piece went live. Several automotive manufacturers have been affected as a result. has already halted new car deliveries to the United States Relying on the Trump administration to change their stance before new vehicle supplies deplete. If this does not occur, iSeeCars predicts that the average used car price might rise by approximately $3,200, which equates to about a 10% increase.
"A potential increase of $1,300 to $3,800, varying according to the type of vehicle, might not be something your typical buyer looking for a used car would want to encounter within the coming 6 to 12 months. However, this could definitely happen should prices of new cars go up," stated Brauer.
Fasten your seatbelt. The entire scenario will likely become even more chaotic in the coming weeks and months.
More On Vehicle Pricing:
- Hyundai Won't Increase Prices Due to Tariffs but Discontinues Free Maintenance
- Analysts Predict Car Prices Could Increase by Thousands Due to Tariffs
Source: iSeeCars