The gas Honda CR-V starts at $30,920 for 2026. Its tariff exposure is substantial: the car is assembled in Ontario, Canada, making it subject to the full 25% import tariff. Estimated cost added to the vehicle: $5,000 to $8,900, per KBB's tariff cost analysis. The CR-V Hybrid, built in Ohio and Indiana, doesn't carry that exposure. Same badge. Different plant. Thousands of dollars of difference.
That's what the new vs. used question actually looks like in 2026. It's not just "new cars cost more." It's a matrix of where a vehicle is built, how hard tariffs hit it, and how that compares to what a 3-year-old version of the same vehicle is selling for used.
The Headline Numbers
The average new vehicle transaction price hit $49,353 in February, per Kelley Blue Book. Average used car listing: $25,287, according to CARFAX's April 2026 data. That gap, roughly $24,000, is the widest on record.
Monthly payments reflect the same split. New car average: $772. Used: $570. Both per Edmunds Q4 2025 data. The $202 monthly difference compounds to over $12,000 across a 5-year loan.
But those averages obscure segment reality. Compact SUV buyers paid an average of $36,807 for a new vehicle in February. Full-size pickup buyers paid $66,157. Those are not the same calculation.
Tariff Exposure Depends on the Badge
The 25% tariff on imported vehicles took effect April 3, 2025. Vehicles from the UK and EU now face a negotiated 15% rate. USMCA-compliant vehicles from Canada and Mexico get partial exemptions, but many popular models still carry significant foreign parts content. The result: imported cars added $5,000 to $8,900 in cost versus the prior year. U.S.-assembled vehicles added $1,600 to $2,000, driven by tariffed components, per KBB data. Toyota alone absorbed roughly $9.1 billion in tariff-related costs for the fiscal year ending March 2026, per their earnings reports.
Where specific popular models fall:
| Model | Assembly Location | Tariff Exposure | 2026 MSRP Start |
|---|---|---|---|
| Honda CR-V (gas) | Ontario, Canada | High (25% imported) | $30,920 |
| Toyota RAV4 (gas) | Ontario, Canada | High (25% imported) | $33,350 |
| Honda CR-V Hybrid | Ohio and Indiana | Low (U.S.-assembled) | Higher than gas |
| Toyota RAV4 Hybrid | Georgetown, KY | Medium (U.S.-built, ~75% foreign parts) | Higher than gas |
| Ford F-150 | Dearborn, MI / Kansas City, MO | Low (U.S.-assembled) | $40,085 |
The RAV4 Hybrid is assembled in Kentucky, but Toyota sources roughly 75% of its parts from outside USMCA, per Edmunds' tariff analysis. So the U.S. assembly doesn't mean U.S. parts content, and the actual cost burden is somewhere between a clean domestic build and a fully imported vehicle.
When Used Wins Clearly
For models hit hardest by tariffs, the used case is especially strong right now.
The CR-V depreciates roughly 28% over five years, per CarEdge data. The RAV4 runs about 25%. On a 2023 model bought at pre-tariff pricing, that depreciation puts a 3-year-old vehicle well below what you'd pay for the 2026 equivalent. The new version of the same car now starts materially higher than it would have without tariffs, and that inflation doesn't transfer to the used market at the same rate. Used prices have risen too. The Manheim Used Vehicle Value Index climbed 2.4% year over year in January 2026, but not by $5,000 to $8,900.
Put directly: buying a 3-year-old imported compact SUV right now means you avoid the depreciation hit AND avoid paying for a new car that carries years of tariff absorption baked into its sticker.
Midsize sedans are an even cleaner win. CarEdge's 2026 price forecast projects 2-5 year old sedan prices down 1-5% through the year while trucks hold. A used 2022-2024 Camry or Accord gives you the best of both conditions: a segment where used inventory is softening and where the equivalent new car carries high tariff exposure.
When New Makes Sense
For U.S.-assembled vehicles with strong domestic content, the tariff inflation on new is limited to $1,600 to $2,000. That's a smaller premium to absorb.
Trucks hold their value unusually well. The F-150, assembled in Michigan and Missouri, carries low tariff exposure and high residual value. Full-size pickup buyers have less margin of safety in the used market than compact SUV shoppers do. The average new transaction at $66,157 is high, but high-demand configurations in the used market aren't dramatically cheaper once you spec them out comparably.
Buying new also makes more sense when you plan to keep the vehicle for a long time. A $5,000 tariff premium, amortized over a 10-year ownership period, is $500 per year. That's not trivial, but it's less decisive than the financing math suggests up front.
Certified pre-owned buyers should note: CPO programs add warranties that partially offset used risk. For buyers who want predictability and a low-mileage car but don't need the absolute latest model year, CPO on a domestic truck or hybrid is often a reasonable middle path.
The Decision Table
| Segment | Tariff Impact on New | Used Price Pressure | Buy New or Used? |
|---|---|---|---|
| Imported compact SUV (CR-V, RAV4, Tucson gas) | High: $5,000-$8,900 | Moderate rise | Used |
| Imported midsize sedan (Camry, Accord, Elantra) | High | Softening | Used, strong case |
| U.S.-assembled hybrid SUV (CR-V Hybrid, RAV4 Hybrid) | Low to medium | Moderate | Used or new, check specific pricing |
| Full-size U.S. truck (F-150, Silverado) | Low: $1,600-$2,000 | Firm | Depends on trim and configuration |
| Non-Tesla used EV (Mach-E, Ioniq 5, Bolt EUV) | N/A: already in used market | Off-lease wave, prices falling | Used, significant buyer leverage |
FAQ
Is it better to buy new or used in 2026?
For most buyers, used makes more financial sense right now. The average new car costs $49,353 versus $25,287 for used, per KBB and CARFAX February 2026 data. Tariffs have added $1,600 to $8,900 to new prices depending on where a car is built. Imported models like the gas CR-V and RAV4 saw the largest increases, making a 3-year-old version of the same car a meaningfully better value than it was in 2023.
Which segment has the widest used advantage?
Imported compact SUVs and midsize sedans. Both categories carry high tariff exposure on new models and have enough used inventory that pricing is competitive. Non-Tesla used EVs are also at historically low prices, averaging $23,738 per Recurrent's Q1 2026 report, as the wave of 2023 lease returns hits the market.
Will new car prices drop after tariffs?
Not soon. List prices rose 10.4% but consumers paid only 5.9% more because dealers and automakers absorbed the rest. That cushion is shrinking. The tariff offset program, which allowed U.S.-assembled vehicle manufacturers to recover up to 3.75% of MSRP in tariff costs on foreign parts, drops to 2.5% starting May 1, 2026. That removes a lever that's been keeping prices artificially stable heading into spring.
CarScout's market pages track live pricing by make, model, and model year so you can compare what a specific car costs new against what identical units are listing for used. Market averages tell you the trend. The specific car you're considering tells you the number.
Bottom Line
For imported compact SUVs and sedans, buying used is the clearest financial win right now. Tariffs added thousands to new sticker prices, and that inflation hasn't carried over to the used market at the same rate. For U.S.-assembled trucks, the gap is narrower since tariff exposure is limited to components, not the whole vehicle. Regardless of segment, used car shoppers benefit from the fact that tariff-driven new car price increases are pushing more buyers into the used market, but rising demand means used prices are climbing too. Check CarScout's market pages for real pricing on the specific make, model, and year you're considering before you negotiate.
Data sourced from Kelley Blue Book, Edmunds, CARFAX, Manheim, Recurrent, and CarEdge. Prices and inventory reflect early April 2026 listings.