As new car costs climb, used vehicles become hot property in April

If you’re shopping for a used car, brace yourself, prices are on the rise, and fast.

According to Manheim’s April 2025 Mid-Month Market Insights, wholesale vehicle values jumped 2.2% in early April, pushing the Used Vehicle Value Index (MUVVI) to 257.7, 4.3% higher than a year ago. The sharp uptick, coming after months of cooling, signals a renewed surge in demand.

“This is one of the strongest spring rebounds we’ve seen in recent years,” said Jeremy Robb, Lead Economist at Manheim, the leading wholesale auto marketplace under Cox Automotive. “Dealers are buying, customers are shopping, and the market is responding.”

Why the rush? Buyers pivot from new to used

With new vehicle prices still climbing, up 0.87% this month alone, consumers are increasingly turning to used cars for better deals. The price gap between new and used is narrowing, but used cars still offer a cost-effective entry into the market.

As Robb explained, “Rising tariffs and manufacturer pricing pressures are forcing buyers to consider alternatives. And for many, the used market remains the most accessible option.”

That shift is driving up wholesale prices, especially in the most in-demand segments like SUVs, which saw the biggest yearly gain of 5.1%. Pickups followed with 2.3%, while sedans grew modestly at 0.9%. Even electric vehicles (EVs) recorded a 0.6% YoY increase, ending a months-long plateau.

Sales conversion surges to 63.9%, the highest in years

Manheim reports that 63.9% of vehicles offered for auction were sold in the first week of April, far above the same period last year and even outperforming pre-pandemic years.

“Sales conversion is a key measure of market confidence,” Robb noted. “When dealers are buying like this, it means they expect strong retail demand. They’re gearing up for a busy selling season.”

Though conversion eased slightly in the following weeks, it remains well above historical norms, underscoring the strength of buyer sentiment and the competitive pace of retail sales.

Older cars, higher prices: All segments up

Price increases weren’t limited to newer models. Vehicles of all ages (1-year-old to 10-year-old stock) saw above-average price appreciation, with 6-year-old vehicles showing the biggest gains. In the second week of April alone, appreciation across most segments was between 1.0% and 1.5%.

This trend signals broad demand across income levels, as buyers seek value and durability in older, more affordable cars.

“People are looking for quality vehicles they can depend on without taking on high financing costs,” Robb said. “It’s no longer just about model year, it’s about function, price, and availability.”

Digital retailing, auctions, and the ALM advantage

Dealers and buyers are also leaning on digital tools more than ever. Online auctions and wholesale platforms are helping move vehicles faster and more efficiently, meeting the speed of current market demand.

“Digital has changed everything,” Robb added. “Whether you’re a small dealer or a national retailer, online channels are giving you better access and better control.”

The Road Ahead: Momentum and Caution

The April market looks strong, but the outlook remains cautiously optimistic. While dealers are confident and buyers are active, Robb warns that broader economic factors, from interest rates to tariff policy, could quickly change the dynamics.

“Spring has brought warmth to the market, but we’re not fully out of the woods,” he said. “We’re watching closely to see how the economy, consumer sentiment, and inventory flows shape the summer.”

Still, with wholesale values climbing and demand holding firm, April is shaping up to be one of the most active months in over a year.

Takeaway for buyers and sellers

For buyers, if you’re planning to purchase a used car, act soon. Delaying could mean higher prices and fewer choices. For dealers and sellers: this is a window of opportunity to stock up and move inventory while the market’s hot.

As Robb concluded, “Right now, it’s about agility. The dealers who understand market signals and act fast will win.”

Read more on U.S. auto sales boosted by anticipation of new tariffs