Tariffs expected to take a toll on used-car supply — now and later

With a 25% tariff on imported autos in place, much of the focus has been on its effect on vehicle prices.

But the supply of vehicle inventory, already an issue in the used-car sector, looms as a factor in both the short and long term.

In 2024, used supply sank 8% year-over-year to end the year 28% below pre-pandemic levels, and in its original 2025 forecast, Cox Automotive projected that trend to continue as the impact of COVID-induced slowdowns in new-vehicle sales and production ripples through the used-car market.

And that was before tariffs became a thing ...