Auto and Motor Vehicle Wholesalers NAICS 423110

Jul 9, 2025 - Used Car Wholesale Prices Soar

• The Manheim Used Vehicle Index (MUVI), which tracks used car wholesale prices at auction, rose to its highest level in three years. The index rose 1.6% in June over the previous month, and was up 6.3% year over year, as tariff-driven price hikes and related supply shortages on new cars ripple down into the used vehicle market. Price appreciation on new cars and a surge of pre-tariff car purchases is translating into used car supply shortages as consumers keep cars longer and don’t trade in three-year leases after the term. Leasing trade-ins are a prime source of used car supply - when consumers choose to keep their leased vehicle instead, used car inventory plummets. In addition, MUVI has become something of an inflation indicator as it performed similarly in predicting inflation after the pandemic. Economists have increasingly looked to MUVI to gauge the likelihood of inflation.
• The Trump administration slapped 25% tariffs on all imported automobiles on April 2, claiming the levies will spur auto factory building in the US. The tariffs will apply to all imported passenger cars and light trucks. Certain auto parts will also be subjected to the levies such as engines, electrical components, and powertrain parts. This is in addition to reciprocal tariffs Trump also levied against specific countries that are key US partners in auto manufacturing. According to Cox Automotive, the tariffs will increase the price of imported passenger vehicles by an average of $6,000. In 2023, the US imported about $120 billion worth of automotive products from Mexico and Canada - roughly half of all US vehicle and parts imports. The move will likely spur retaliatory tariffs from other countries against the US, potentially driving auto prices even higher.

• US new light vehicle seasonally adjusted annualized sales (SAAR) rose 2.1% year over year in February 2025, totaling 16 million units, according to NADA Market Beat. The results were a dip from December 2024, which had the highest monthly SAAR in almost four years. Wards Auto estimates that auto sales in February will be about 1 million vehicles. Total fleet inventory of new light vehicles in the US, however, plummeted 16.3% year over year to 210,000 units. The drop in inventory is a result of the supply problems from on-again, off-again tariff threats against Mexico and Canada, key automobile and auto parts US trade partners. “American made” cars are loaded with Canadian and Mexican parts, and NADA Market Beat predicts that if Trump’s threatened tariffs go into effect, it will raise the average price of new vehicles from $4,000 to $12,000.
• Car repossessions increased 23% in 2023 compared to the previous year and were up 14% compared to pre-pandemic levels, as consumers struggle with financial pressures, according to Cox Automotive data reported by Jalopnik. Cars are typically repossessed after falling behind on car payments for several months. Monthly bills are becoming unaffordable for many vehicle owners due to inflation, higher car prices, and high interest rates. The average monthly payment for new car buyers in the US was $760 per month for an auto loan in May 2024, with 17% of owners making monthly payments of more than $1,000. On top of high monthly car payments, consumers are also facing significant increases in car insurance costs and rising housing costs, which are contributing factors to missed payments, according to the article.