How U.S. tariffs are fueling a hot used vehicle market
May 08, 2025
What happens when global trade policies change overnight? If you manage a fleet, you’re already feeling the pressure.
Recent tariff updates are tacking on an estimated $5,000–$10,000 to the cost of new vehicles. But here’s the twist: the used vehicle market is thriving like never before. With values and demand both surging, you're in a rare position to gain, if you move strategically.
In this blog, you’ll learn how U.S. car tariffs are impacting fleet remarketing, where the opportunities lie, and what steps you can take right now to get ahead.
Tariff changes: What you need to know
The 25% tariff on imported vehicles and auto parts, which came into effect on April 3, 2025, is anticipated to disrupt global supply chains and significantly increase the cost of imported vehicles and components. This unexpected hike forced automakers and fleet operators to reevaluate sourcing strategies and vehicle acquisition budgets.
Building on these changes, recent executive orders by President Trump have modified certain tariffs on imported vehicles and auto parts. Among the key updates:
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Automakers assembling cars in the U.S. now qualify for a 3.75% tariff credit in the first year, providing some relief from the original 25% tariffs. This credit will drop to 2.5% in the second year before being phased out entirely.
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Despite these changes, analysts project new vehicle prices could rise by up to $10,000. This places pressure on fleet acquisition budgets, making every purchase decision more critical.
These developments align with insights from fleet remarketing forums and auction trends. Emerging market conditions are shifting priorities for both remarketers and fleet operators.
What does that mean for you? Buying new fleet vehicles just got a lot more expensive and selling used vehicles just got more valuable.
The ripple effect on the used vehicle market
While the outlook for new vehicles might be uncertain, the used vehicle market is thriving. Rising demand for affordable alternatives has created a seller’s market, making this a golden moment for fleet remarketing.
Here are some highlights for remarketing vehicles:
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The used car market is on the rise. Market retention rates for six-year-old vehicles have surged to 104.4% of their value, up 4.7 points from last year. If you’re looking to sell older vehicles, there’s never been a better time.
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Auction success is strong across the board. According to the Manheim Used Vehicle Value Index, the average daily sales conversion rate in March 2025 reached 65.8%, up from a three-year average of 60.8%.
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Compact and midsize cars are in demand. Cost-conscious buyers are leaning toward economic models like compact and midsize vehicles, boosting their resale values significantly.
For fleet managers, these trends mean it’s time to reevaluate your remarketing strategies and take advantage of this demand while it lasts.
Actionable tips for maximizing fleet remarketing impact
You’re at a crossroads. Do you wait for new vehicle prices to stabilize or act now to take advantage of historic resale values?
Here’s what you can do today:
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Sell while the market is hot: Capitalize on high values for used vehicles by adjusting your de-fleeting schedule. For instance, pushing to sell vehicles at 70,000 miles rather than waiting till 100,000 miles could lock in better resale prices.
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Use data to drive decisions: Leverage tools like the Manheim Market Report (MMR) to stay informed on industry benchmarks and identify vehicles likely to perform well at auction. Reliable data will guide smarter, quicker decisions.
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Budget for higher replacement costs: With steep price increases for new vehicles, reassess budgets and prioritize acquisitions offering long-term value. Models with higher resale potential can help minimize some of the financial strain.
How to read the market beyond the headlines
Market conditions today are incredibly reactive. Policy announcements, even social media statements, can send vehicle values swinging. It's critical to stay dialed in to broader economic indicators, not just fleet specific news.
Tariffs remain a moving target, with potential for further changes ahead. Staying tuned to industry updates and aligning fleet strategies accordingly will enable you to be resilient in an unpredictable market. Successfully managing these shifts could mean reallocating resources toward remarketing efforts that maximize existing inventory.
Convert volatility into opportunity
The evolving tariff situation has created disruption, but it’s also opened doors for strategic fleet leaders. The surge in used vehicle demand and resale values provides a rare opportunity to boost returns through savvy vehicle remarketing practices.
Stay informed, stay agile, and most importantly, take action. The more proactive you are in aligning with current used car market trends, the better positioned your fleet will be for the road ahead.
Struggling to figure it out alone? Connect with us to speak with an industry advisor from our dedicated remarketing practice group.
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