Used car prices saw their biggest jump in almost 3 years

The Manheim Used Vehicle Value Index, a closely watched gauge of wholesale auction prices, rose 1.6% in June from May and jumped 6.3% compared to a year earlier. That marks the largest year-over-year increase since August 2022.

At 208.5, the index has been trending upward for a year and is now at its highest point since October 2023, according to data released Tuesday by Cox Automotive.

“Wholesale appreciation trends have been more volatile over Q2 as tariffs really impacted new sales and supply, which impacted the used marketplace as well,” said Jeremy Robb, senior director of economic and industry insights at Cox Automotive in a release.

The recent surge comes amid vehicle market volatility connected to President Donald Trump’s 25% tariffs on imported autos. Those tariffs triggered a spike in new vehicle purchases earlier this spring as consumers rushed to buy before prices rose, but sales fell off substantially in May and dropped again in June.

Robb noted that while price pressures typically ease in the second half of the year, retail vehicle sales remain “a bit hotter than prior years,” and the supply of vehicles coming off lease into the used market is declining — factors likely to keep used car values elevated in the coming months.

Federal Reserve officials remain divided on whether the current price pressures signal another round of lasting inflation. Fed Governor Christopher Waller, who in 2021 warned colleagues not to dismiss used car price data as an outlier, now appears more focused on the potential drag tariffs could have on overall demand. Waller recently said he was open to cutting interest rates as early as the Fed’s meeting later this month.

For consumers, rising used car prices are unwelcome news as affordability challenges persist in both new and pre-owned markets. Analysts say the next few months will be key to understanding whether this uptick is temporary — or the start of another prolonged rise in vehicle costs.