Average Marketed Costs Have Increased by Almost $600 in March
New vehicle pricing has been an ongoing topic of interest and focus in Cloud Theory’s market assessments over the past several years. Most recently, we have evaluated trends in light of steady inventory recovery but slower demand growth. While pricing has remained elevated during this latest period (due to a variety of factors such as the discontinuation of lower-end models and OEM focus on higher-end trims), there had been some downward movement in January and February. This resulted in a $1,526 drop compared to September 2024.
In March, however, average marketed prices have begun to creep back up, rising each day since the beginning of the month. Over the course of 17 days, average marketed prices have gone up by $562. While still relatively modest at this point, these increases are clearly pointing to a reversal of recent trends.
Source: Cloud Theory 2025
Much has been written about the effects of the Trump Administration’s tariffs on consumer prices in general, and the impact on car prices has been expected to be immediate. While the tariff approach in Washington has been mercurial—with new or increased levies announced and then withdrawn—there are increased fees that have been implemented on various parts and materials, which will have down-river effects on consumer prices. Additionally, the ambiguity of potential supply chain disruptions is adding a level of uncertainty to parts procurement and production planning within the industry.
The longer-term effects of these tariffs remain to be seen. If they are being used as negotiating tactics and are of shorter duration, the price increases and disruptions will be shallower. But if they are part of a longer-term strategy or if they spark a tit-for-tat retaliatory trade war (which seems more likely by the day), then we may look back on these price increases as a true inflection point.
But one thing is for certain. The automotive industry is in for a bit of a bumpy ride until the tariff situation is resolved one way or another. And consumers will pay the price while these geopolitical and macroeconomic dynamics play out.
