Dealers paid more for used cars at auction in January than they did in December. That’s bad news for car shoppers, as an uptick in wholesale prices means an uptick in resale prices.
Used car prices have already been rising. The average used car was listed for $25,565 in December — a 0.25% increase from the previous month. Our data analysts are currently crunching January’s numbers, which we expect to publish soon.
Related: Is Now The Time to Buy, Sell, or Trade in a Car?
That news comes from Kelley Blue Book’s parent company, Cox Automotive, which also owns car auction giant Manheim, where dealers go to buy used cars they later sell.
The Manheim Used Vehicle Value Index tracks wholesale prices. Wholesale price changes tend to show up in the prices you and I pay after about six to eight weeks. The index moved 0.4% higher in January than in December and now sits 0.8% higher than a year ago.
That likely means higher prices in April, even if the car market avoids major changes.
Avoiding them may be impossible. President Trump has threatened to enact a 25% blanket tariff on all goods from Mexico and Canada on March 1. That could raise the prices of both new and used cars dramatically.
If you are used car shopping this month, you might want to consider a sedan. Used midsize and compact cars both saw their prices fall in January, even as SUVs of all sizes, pickup trucks, and luxury vehicles all moved higher.
