Why Tariffs Could Raise the Price of Used Cars Too

Used cars, long seen as the go-to choice for value and availability, are now feeling the impact of tariffs, even though those policies weren’t written with them in mind.

When most people hear about tariffs on imported vehicles, they assume it’s a problem for buyers in the market for something brand new. The reality is more complicated, and the ripple effects are starting to reach well beyond showroom floors. As manufacturers raise prices and inventories tighten, more shoppers are turning to used cars. That shift, while understandable, is creating its own pressure.

New Car Inventory Is Getting Tighter

In the wake of tariff announcements, several automakers adjusted pricing on models built outside the U.S. Ford, for instance, is planning to increase the sticker price on certain Mexico-built models by around $2,000. Other brands are making smaller changes, some closer to $1,200, but the trend is clear. While manufacturers are absorbing part of the cost to stay competitive, dealerships are starting to feel the pinch.

Dealers that once stocked 200 vehicles are now working with half that number. That shortage doesn’t just affect buyers looking for new models; it limits color and trim options, delays availability, and reduces dealers’ ability to negotiate. The result? Fewer sales and tighter margins.

Why Used Cars Are the Next Best Option

For buyers, this has led to a predictable pivot. When prices on new cars jump, and inventory dries up, attention shifts toward used cars. It’s not a new phenomenon; it happens every time the new market becomes unsteady.

Used vehicles, especially certified pre-owned (CPO) options, offer multiple advantages. They’re often thousands of dollars less than a new model, skip the worst of depreciation, and may even come with stronger warranty coverage than the new version. In a world where budgets are tight and flexibility matters, used cars check a lot of boxes.

But Demand Pushes Prices Up

As demand increases, prices of used cars rise with it. That’s exactly what dealers are anticipating. Some have already started raising prices ahead of time, expecting an influx of buyers priced out of the new market. This kind of move isn’t illegal, but it walks the line between proactive and opportunistic.

It’s not just the cars themselves that will cost more. Parts, service, and maintenance could see increases, too, since many of those components are also subject to tariffs. That means even existing owners could be paying more to keep their current vehicles on the road.

What Smart Shoppers Can Still Do

Even in a shifting market, used vehicles still represent a solid option, especially for buyers willing to be a little flexible. If you’re not set on a specific model or trim, or if you’re willing to travel a bit to find the right vehicle, there are still deals to be found. Doing your homework matters more than ever.

Watch this Changing Market

Tariffs may have started with new imports, but the effects are spreading. With higher prices, reduced inventory, and shifting consumer behavior, the market for used cars is heating up. Still, for those willing to research and adapt, used vehicles remain one of the most dependable ways to navigate this uncertainty.