Trump's automobile tariffs are lighting a fire under these two stocks
Portfolio Pulse from
President Trump's new automobile tariffs are expected to potentially increase used car prices by raising new car prices and potentially reducing new car supply. This could positively impact companies with significant used car inventories or related business models.
March 27, 2025 | 7:30 pm
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POSITIVE IMPACT
As new car prices potentially increase due to tariffs, CarMax could benefit from higher used car valuations and increased demand for pre-owned vehicles.
Tariffs could increase new car prices, potentially shifting consumer demand to used cars and increasing the value of CarMax's inventory. Higher residual values would directly benefit their business model.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Online used car retailer Carvana could see positive impacts from potential price increases in the used car market driven by new automobile tariffs.
As an online used car platform, Carvana could benefit from increased used car valuations and potential shifts in consumer purchasing behavior due to higher new car prices.
CONFIDENCE 65
IMPORTANCE 70
RELEVANCE 75