Carvana Sales May Speed Up Ahead of Tariffs, but Brake on Price Increases -- Market Talk

Dow Jones2025-04-18
 

1253 ET - Carvana could benefit in the short-term from shoppers trying to buy used vehicles before tariffs send prices higher, but eventually those price bumps could hurt the car retailer, D.A. Davidson analyst Michael Baker says. Used-car prices increased in April at an accelerated rate, Baker says, citing data from the Manheim Used Vehicle Value Index. The index shows mid-April prices are up 4.4% from the same time last year, the highest year-over-year increase since August 2022. Rising car prices may motivate consumers to buy used cars before prices get even higher, but if they continue to increase, sales could drop off, Baker says. Carvana has already started pulling back inventory, potentially suggesting it's concerned about lower unit growth, he says. (katherine.hamilton@wsj.com)

 

(END) Dow Jones Newswires

April 17, 2025 12:53 ET (16:53 GMT)

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