The prices at the Manheim auto auction have been better than usual lately, especially since President Donald Trump started pushing for new tariffs on imported vehicles, parts as well as the steel and aluminum used to make cars, said Jonathan Smoke, the chief economist of Cox Automotive. Cox runs the auction, which draws dealers from around the country to bid online or in person at the auction house.
Smoke tracks three-year old vehicles as an indicator of pricing for used cars, since that’s when a lot of leases are turned in and that vintage is the most common pre-owned vehicle for sale at any given time. A three-year-old Nissan Altima costs about $100 more now than it did just last month. A three-year-old Toyota Camry costs $400 more than it did a year ago.
“The fact this happened almost exactly two weeks after Trump announced he was going to enact tariffs can’t be ignored,” Smoke said, referring to tariffs Donald Trump has proposed on new vehicles imported to the United States…
While the tariffs on new car sales haven’t been enacted yet, the mere threat appears to be driving up prices on new cars. Auto dealers at the Manheim auction Aug. 10 theorized that consumers who might be in the market for a car in the next six to nine months are buying now to hedge against possible rising prices.