How a Trump Win in 2024 Could Impact the Cost of a Used Car
Written by
Vance Cariaga
Edited by
Daria Uhlig
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Used car prices are influenced by a range of factors, from the vehicle’s make and model to the state of the economy. Presidential policies can have an impact as well, though it’s often an indirect one. That could happen if ex-President Donald Trump wins re-election this year in his rematch against current President Joe Biden.
Currently, used cars remain pricey. The average used-vehicle listing price was $25,328 in early February, according to research from Cox Automotive. That’s down from the previous couple of years but still much higher than in 2019, before the COVID-19 pandemic sent prices soaring.
How might Trump impact prices should he return to the White House? Here’s a look at how three of his expected policies could influence the cost of used cars.
EV Regulations
The electric vehicle industry got a big leg up during the Biden administration, thanks to a pair of bills that earmarked billions of dollars for EV charging infrastructure, expanded tax credits for EVs and federal loans and subsidies to retool existing auto factories and retrain workers.
If Trump wins reelection, he aims to curb these laws and change or eliminate federal funding for the EV industry, according to a report from S&P Global. That could impact both the gas-powered and electric vehicle sectors by helping the former and hurting the latter.
One possibility is that used EV sales will slow — which could lower their prices. Fewer EV buyers might also mean more buyers of gas-powered cars, which could push their demand and prices higher.
Oil and Gas Drilling
Trump has pledged to increase oil and gas drilling in the U.S., including in remote areas of Alaska, where Biden canceled oil and gas leases. Theoretically, more oil and gas production in the U.S. would push gasoline prices down, which could lead to a rise in sales of gas-powered cars. The effect could be similar to a change in EV regulations — prices of EVs might go down at used-car lots, while prices of gas-powered cars might go up.
Tariffs
When Trump was president, his proposals to impose tariffs on foreign-made goods spooked auto executives, who worried that they’d have to raise prices to account for more expensive parts sourced from overseas. Higher prices on new cars might convince consumers to buy used cars, they reasoned, which would increase those prices as well.
The same could happen if Trump wins re-election and makes good on his pledge to impose additional tariffs. In a recent interview with CNBC, he said he’s a “big believer in tariffs.”
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