With new car tariffs up 25 percent, affordability is shifting to used vehicles. But what does this mean for buyers and dealers?
The U.S. automotive market is shifting fast, and tariffs are playing a big role.
In May 2025, new auto tariffs were raised to 25 percent on many foreign-made vehicles and components. Add in global supply chain constraints and stubbornly high new car prices, and you get one clear result: more buyers are turning to the used car market.
But this shift is creating ripple effects for both buyers and sellers. Whether you’re thinking of buying, selling, or trading in, here is what you need to know.
Why More Buyers Are Going Used
In 2025, the average new vehicle transaction price is nearly $50,000. For many shoppers, that is simply out of reach.
According to Cox Automotive, the average price for a 3-year-old used vehicle in Q1 2025 was $30,522 — a far more manageable number for many households. But even this market is heating up.
As tariffs increase the cost of new vehicles, buyers who might have shopped new are flooding into used inventory. More demand means tighter supply and rising prices on the used side as well.
The Impact on Used Vehicle Supply
Dealers are already feeling the crunch. According to Edmunds, the average age of a trade-in vehicle has climbed to 7.6 years — the highest on record. That means many cars coming into the used market are older, with higher mileage and more wear.
Meanwhile, many late-model used cars are in short supply. Vehicles aged 1 to 3 years are especially popular with buyers looking for modern features without the new-car price tag. These vehicles are increasingly hard to find — and commanding premium prices.
Tips for Used Car Buyers
If you are shopping for a used vehicle right now, a smart approach matters more than ever. Here are a few tips:
- Stay flexible. The more makes and models you are willing to consider, the better your chances of finding a good value.
- Do your research. Know the fair market value for the vehicles you’re considering. Tools like Kelley Blue Book and Edmunds can help.
- Negotiate smart. Start with the out-the-door price, not just the sticker price. Factor in taxes, fees, and any dealer add-ons.
- Act quickly. The best used car deals are going fast in today’s market. If you see a vehicle you like at a fair price, do not wait too long to move on it.
What This Means for Sellers
If you are considering selling or trading in your vehicle, this market works in your favor. High demand and tight supply mean you can likely get a better offer than you might expect.
At Before U Trade, we are seeing strong interest in clean, late-model vehicles with good maintenance histories. Sellers who present their vehicle well — with complete records, a clean interior, and good photos — can often secure top dollar.
The Bottom Line
Tariffs are reshaping the automotive market, and the used car segment is seeing the biggest immediate impact. For buyers, this means acting smart and fast to secure a good deal. For sellers, it is an opportunity to maximize value before the market shifts again.
As always, if you’re thinking of selling your vehicle — or just curious what it is worth in today’s market — we are here to help. Get your free online offer in minutes at Before U Trade and see why more drivers are choosing us as their trusted car buyer.
