The average price consumers paid, after discounts and promotions, rose 2.5% from March, more than double the typical 1.1% increase over those two months in recent years, Cox Automotive’s Kelley Blue Book showed. In the past decade, the only larger such increase was in April 2020, when prices rose 2.7% during pandemic-related factory shutdowns.
Still, consumer demand has risen over the past few months as buyers rush to get ahead of any tariff-related price increases, dealers and auto executives have said. That has translated into new-car shoppers shelling out more on average at dealerships, according to Cox.
“Those models got more demand, and therefore the local pricing dynamics at the dealership level likely helped those prices go higher.”
Wholesale used-vehicle prices rose in April, according to Cox’s Manheim Used Vehicle Value Index, which increased 4.9% to 208.2 from a year ago, up 2.7% from March.
Consumer-incentive programs are still very strong, said Todd Szott, dealer partner at Szott Automotive Group, which has Ford, Stellantis and Toyota dealerships in Metro Detroit. “Pricing is fairly stable at this point.”
A dip in the number of vehicles sitting on dealer lots could point to upward pressure on prices in coming months.
Paul Zimmermann, partner-owner at Matick Automotive Group of Michigan, which owns GM and Toyota stores, said vehicle stocks are getting lighter in some areas after a robust April.
Cox previously estimated new vehicles directly affected by a 25% tariff could cost 10% to 15% more, while the prices on vehicles not affected by the full tariff could rise 5%.
Keating does not expect double-digit percentages soon, but maybe over the long term. Automakers may use model-year changeover time in the summer to adjust prices, she added.
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