Used car prices rose in March for the first time in nearly a year and a half, according to a new report from iSeeCars, signaling a potential shift in the market ahead of newly implemented tariffs that may further drive up both new and used vehicle costs.
Average prices for 1- to 5-year-old used vehicles increased 1% year-over-year, or $317, in March 2025—the first annual gain since October 2022. The data, compiled before U.S. auto tariffs took effect on April 3, suggest the used car market is already trending upward after a prolonged stabilization period.
“Used car prices had been falling by as much as 7.3% in June 2024, but over the past six months, prices stabilized,” said iSeeCars Executive Analyst Karl Brauer in the report. “Now they’re rising again—and this is before tariffs have impacted new car pricing, which will add further upward pressure.”
The study found that if the market follows the pattern seen during the early pandemic—when new vehicle prices spiked 8.2% in just eight months—popular used models could see cost increases ranging from $890 to more than $5,000. During that period, tight new car supply shifted consumer demand to the used market, inflating prices.
Brauer warned that tariffs could trigger a similar effect, this time without the supply chain disruptions of COVID-19.
In its analysis, iSeeCars calculated what a 5% or 10% price bump would mean for various vehicle types and top-selling used models. For instance, a Chevrolet Tahoe—currently priced at $51,691—could increase by $2,585 to $5,169 under that scenario. The average used car price of $31,624 could climb to $34,786 with a 10% increase.
Segment trends
While overall used car prices have ticked up, the report noted significant variation across vehicle types. SUVs saw the sharpest year-over-year increase at 3.5% ($1,098), while trucks gained 0.9% ($337). Meanwhile, electric vehicles continued their downward trend, falling 10.1% ($3,602) compared to March 2024. Passenger cars and minivans also declined 3.2% ($865).
However, after nearly a year of flat prices, March marked the first monthly and annual uptick in used car costs:
- March 2025: $31,624 (+$317 YoY)
- February 2025: $31,257 (-$239 YoY)
- January 2025: $31,731 (-$250 YoY)
- December 2024: $29,651 (-$365 YoY)
The gradual upward trend since late 2024 reflects continued demand and limited supply, according to iSeeCars, which expects this imbalance to intensify if new vehicle prices climb.
Buyers face uncertain road ahead
Looking ahead, iSeeCars projects that a 5–10% increase in used car prices could push some models out of reach for budget-conscious buyers. The Toyota RAV4, for example, could see an increase of $1,425 to $2,851 from its current average of $28,509. A Kia Forte, one of the least expensive models in the study, could jump from $17,803 to as much as $19,583.
“A price bump between $1,300 and $3,800, depending on vehicle segment, is probably not what the average used car shopper wants to face,” said Brauer. “But it’s a definite possibility if new car pricing rises.”
As tariffs begin to influence dealership pricing strategies and consumer demand, industry analysts say car buyers may soon be revisiting the affordability challenges last seen during the pandemic-era market surge.
