• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Top used car stocks that stand to benefit from Trump tariffs

by July 18, 2025
by July 18, 2025

President Donald Trump’s sweeping automotive tariffs are reshaping the car market – and used car dealers may be the biggest winners.

With 25% levies on imported vehicles and parts now in effect, new car prices are surging, pushing budget-conscious consumers toward more affordable pre-owned options.

According to senior Morgan Stanley analyst, Adam Jonas, the Manheim Used Vehicle Value Index jumped nearly 2% month-over-month in June and more than 6% year-over-year, signalling strong demand.

Jonas notes that consumers are “pre-buying” ahead of the full tariff rollout and the expiration of EV tax credits, further fuelling price inflation.

While automakers brace for margin compression and notable supply chain disruptions – used car dealers are positioned to thrive. Jonas believes three stocks: Group 1 Automotive, Carvana, and CarMax stand to benefit the most from this tariff-driven shift in consumer behaviour.

CarMax Inc (NYSE: KMX)

CarMax, the largest used car retailer in the US, is already seeing the upside of Trump’s tariffs.

In its latest earnings report, the company posted a 9% year-over-year increase in used vehicle unit sales – the fastest growth since 2021.

CEO Bill Nash attributed the surge to both internal strategy and external market forces, including tariff speculation.

CarMax has expanded its inventory of newer pre-owned vehicles, especially those priced under $20,000, to meet rising demand.

Last month, William Blair reiterated its bullish view on KMX shares, citing the company’s national footprint and operational efficiency.

With tariffs making new cars less accessible, CarMax’s value proposition is more compelling than ever.

Carvana Co (NYSE: CVNA)

Carvana is another standout beneficiary of higher tariffs under President Trump, according to the Morgan Stanley analyst.

According to CEO Ernie Garcia, the company is “unlikely to be directly impacted” by the tariffs, since it operates exclusively in the US and sells only used vehicles.

In fact, Garcia believes tariffs could be a tailwind, driving more consumers toward CVNA’s online platform as new car prices spike.

The company reported record Q1 profits of $373 million and sold 133,898 vehicles – a 46% increase year-over-year.

Street currently rates Carvana stock at “overweight” due to high visibility growth and operating leverage.

With its reconditioning centers and digital-first model, Carvana is well-positioned to capture the shift in consumer behavior.

Group 1 Automotive Inc (NYSE: GPI)

Group 1 Automotive is a lesser-known but strategically positioned player in the used car space.

The company sells both new and used vehicles and operates collision centers across the US and UK.

Shares have climbed nearly 14% in 2025, outperforming many peers. Morgan Stanley’s Adam Jonas included GPI in his list of overweight-rated stocks poised to benefit from tariffs.

With a diversified revenue stream and strong geographic footprint, Group 1 is insulated from the worst effects of trade policy volatility.

Additionally, a 0.41% dividend yield makes GPI shares all the more attractive to own in 2025.

The post Top used car stocks that stand to benefit from Trump tariffs appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Asian markets open: Japan inflation cools to 3.3%; Sensex opens weaker
next post
TSMC stock: 3 big reasons why Taiwan Semi’s sinking margins aren’t concerning

Related Posts

Asia markets open: Nikkei hits 51,000 for the...

October 29, 2025

Morning brief: AWS’s $5B South Korea plan; Trump...

October 29, 2025

US retail power prices soar: data centers and...

October 29, 2025

China resumes US soybean imports as trade deal...

October 29, 2025

Amazon’s AWS to fuel South Korea’s AI hub...

October 29, 2025

Visa expands stablecoin network across four blockchains

October 29, 2025

US–China trade talks shift focus to AI chips,...

October 29, 2025

Europe markets open: Stocks flat as Fed looms;...

October 29, 2025

Banijay to acquire majority stake in Tipico creating...

October 28, 2025

Cathie Wood warns investors to brace for correction,...

October 28, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Cowboy Diplomacy: Ranchers Reject Tariff Rhetoric

    October 29, 2025
  • We Have Never Been Austere

    October 29, 2025
  • Asia markets open: Nikkei hits 51,000 for the first time; Sensex jumps 100 points

    October 29, 2025
  • Morning brief: AWS’s $5B South Korea plan; Trump on Kim meet; Oil steady

    October 29, 2025
  • US retail power prices soar: data centers and supply constraints drive up costs

    October 29, 2025
  • China resumes US soybean imports as trade deal nears final stage

    October 29, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (3,045)
  • Editor's Pick (297)
  • Investing (185)
  • Stock (2,072)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Nvidia’s Jensen Huang is now worth more...

July 14, 2025

Google, Meta face summons from India’s financial...

July 20, 2025

Europe markets open: Stoxx 600 drops 1%,...

June 13, 2025