Used cars are a hot item these days — even as their prices skyrocket.

The latest data from CARFAX shows a surge in both used-car sales and prices that far outpaces typical seasonal patterns. The provider of vehicle history reports said the rate of increase in both areas so far this spring is twice that of the same span in 2024.

In a news release, CARFAX said the feeding frenzy of high demand that’s creating the higher prices is being driven by “growing economic uncertainty” — otherwise known as auto tariffs — on top of the normal tax-season uptick.

“We expect this surge in car prices and sales to continue,” CARFAX vice president of business analytics Srinidhi Melkote said in a news release. “The strong new-car demand has pushed new-car prices up and supply down, leading some consumers to turn to used cars for a more affordable option.

“This shift in consumer behavior will drive up used car prices as well, creating a cascading effect across the market.”

In addition to the other factors, prices are affected by a shortage of used-vehicle inventory, a holdover from the slump in new-car sales and production during the COVID pandemic.

As a result, the average cost of used vans and minivans climbed roughly $800 nationwide in March, according to CARFAX’s Used Car Index, while used luxury SUVs jumped $500 and non-luxury SUV prices rose $400. In January, the company said, the average price for all of those vehicle segments had sunk to their lowest levels since the pandemic.

With the rate of new car production potentially dropping in the coming months due to tariffs, CARFAX said, demand for used cars could rise, leading to even higher prices.

“We’re at the front end of a major shift,” CARFAX editor-in-chief Patrick Olsen said. “As demand builds and costs continue climbing, buyers should be more strategic to stay ahead in an increasingly competitive market.”