Stealth Inflation Is Back – Used Car Prices Just Surged

Hidden Price Surge About To Clobber Working Americans

Author

Smart Silver Stacker
May 07, 2025

Used car prices just spiked nearly 5% year over year—and it’s not because of a supply chain glitch. It’s the start of a new stealth inflation wave, driven by tariffs and hitting the most vulnerable Americans hardest.

April Used Car Prices Up 4.9% Year Over Year, 2.7% From March

Here's what's happening:

  • Ford has raised prices on several vehicles manufactured in Mexico.

  • These aren’t high-end SUVs—they’re budget cars, the kind working families rely on.

  • Why the increase? A new round of U.S. tariffs on imported vehicles and parts, announced via executive order in March.

Ford Just Hiked Prices On Models Manufactured In Mexico

A 25% Tariff On Imported Autos

When those tariffs hit, automakers have two choices:

  1. Pass the cost on to consumers (and they are).

  2. Eat the cost and suffer lower earnings.

Rising costs of new cars will drive demand for used autos higher. So guess what’s happening in the used car market? Prices are up 4.9% from last year—and 2.7% just since March.

So to sum it up:

  • New cars cost more.

  • Used cars cost more.

  • Lower-income consumers are squeezed the hardest.

This is how stealth inflation works—it doesn’t always show up in the headlines. It hits when your decade-old Honda breaks down and suddenly the cost to replace it is out of reach.

And here's the twist: the White House acknowledged the harm by modifying that March order in late April—to prevent double tariffs on both steel and car parts. That’s a clear signal—these policies do hurt automakers, and by extension, you.

A Modification To The Order To Ease The Burden On Auto Manufacturers
A tacit admission of the harm done by tariffs

It doesn’t matter who’s in the White House—when these decisions get made, the little guy gets crushed. This isn’t about left vs. right. It’s about us vs. inflation.

In times like this, I stick to hard assets like gold and silver—not because they’re trendy, but because they’re outside this policy-induced madness.

Stay Safe & Happy Stacking

—Smart Silver Stacker

Disclaimer: This content is for informational and entertainment purposes only and should not be construed as financial, legal, or investment advice. Always do your own research and consult with a qualified professional before making financial decisions.