The 2025 auto market remains a battleground of volatility: wholesale prices inched upward this week (+0.17%) despite tariff tensions, while retail demand struggles to keep pace with tightening inventory. Below, we dissect Georgia-specific implications for diminished value claims amid shifting valuations and policy risks.
Week Over Week Wholesale Price Changes
- Market: +0.17% WoW (vs. +0.24% prior week), driven by tax refund-fueled spring demand.
- Trucks/SUVs: +0.20% (Mid-Size Crossovers lead at +0.52%, Full-Size SUVs +0.36%).
- Cars: +0.08%, with Full-Size Cars (+0.36%) outperforming Prestige Luxury (-0.60%) and Sub-Compacts (-0.13%).
- Key Insight: Tariff fears (25% on imports effective April 3) are propping up domestic used truck values, while luxury EVs face steeper depreciation.
Car Segments
- Winners: Full-Size Cars (+0.36%), Near Luxury (+0.40% for 0-2yo models).
- Losers: Prestige Luxury (-0.60%), Sub-Compacts (-0.13%).
- Trend: Older vehicles (8-16yo) depreciate faster (-0.10%) as buyers prioritize newer, tariff-proof inventory.
Truck & SUV Segments
- Top Gainers: Mid-Size Crossover/SUVs (+0.52%), Small Pickups (+0.24%).
- Decliners: Full-Size Vans (-0.30%), Luxury Crossovers (-0.61%).
- Why It Matters: Georgia’s truck-heavy market (Atlanta/Fulton County) sees increased demand for domestic models like Ford F-150 and Ram 1500 amid tariff uncertainty.
Inventory and Retail Trends
- Retail Prices: +0.17% WoW, driven by tax refunds and spring demand.
- Days-to-Turn: 43 days (up from 42 in March), signaling tighter inventory and cautious buyers.
- Wholesale Inventory: Declined 12% MoM, with auction conversion rates at 66%—the highest of 2025.
Industry News Highlights
25% Import Tariffs Shake Market
Trump’s 25% tariff on imported vehicles took effect April 3, inflating prices for non-domestic models (e.g., Toyota Camry, Honda Civic). Dealers report a 15% surge in used truck demand as buyers pivot to avoid tariff costs.
EV Depreciation Accelerates
Luxury EVs (Tesla Model S, Mercedes EQS) depreciate 42% faster post-accident vs. gas cars. Georgia’s expanded EV tax credits (up to $7,500) fail to offset resale losses, complicating diminished value claims.
Auction Liquidity Declines
Total auction inventory dropped 8% in March, with “average condition” vehicles struggling to sell. Exporters of Canadian-used cars gained traction, narrowing price gaps with U.S. units.
Conclusion: Georgia-Specific Takeaways
- Diminished Value Claims: Luxury EVs and older vehicles face heightened risk; demand USPAP appraisals to counter insurer lowballing.
- Local Market: Atlanta’s used truck values (+0.36%) outpace cars, but tariff-driven volatility demands swift action.
- Act Now: Georgia’s 4-year statute of limitations (O.C.G.A. § 33-4-6) still applies—secure appraisals before 2026 reforms.
Need Help? Get a Free 2025 Appraisal to navigate this shifting landscape.
