Key Points
Used vehicle prices last month eased from a recent high in April as consumers who needed a vehicle but feared price hikes due to tariffs purchased one quickly.
The Manheim Used Vehicle Value Index, which tracks prices of used vehicles sold at its U.S. wholesale auctions, decreased 1.5% from April to May, but remained 4% higher than a year earlier.
Retail prices for consumers traditionally follow changes in wholesale prices, but they have not fallen as quickly as wholesale prices in recent years.
A Ford Mustang is seen at a used car dealership in Montebello, California, on May 5, 2025.
DETROIT — Used automobile expenses ultimately eased from their latest high in April as clients who may additionally have wished for a vehicle but feared price hikes due to price lists flocked to purchase a vehicle or truck, in keeping with a carefully watched barometer of preowned costs.
Cox Automotive’s Manheim Used Vehicle Value Index — which tracks prices of used automobiles offered at its U.S. Wholesale auctions — decreased 1.Five% % from April to May, however, remained 4% higher than a year in advance. The degree in April marked the highest considering that October 2023. “Wholesale appreciation developments had been remarkably robust in April,
But the marketplace gave some of that electricity back in May, even though values continue to be well above last levels,” said Jeremy Robb, senior director of monetary and industry insights at Cox Automotive.
Retail fees for customers traditionally follow modifications in wholesale prices, but they have not fallen as fast as wholesale prices in recent years.
While President Donald Trump’s price list of 25% on new imported automobiles and lots of components no longer immediately impact used vehicle income, adjustments in new vehicle prices, manufacturing, and demand affect the used vehicle marketplace, which is how the bulk of Americans buy a car.
Demand has stayed exceedingly sturdy as inventory tiers for used cars – 2.2 million – stay low in comparison with historical ranges. That comes as clients have been conserving directly to their cars for longer and as the enterprise has offered with less production in recent years amid the COVID-19 pandemic and global supply chain shortages.
According to Cox, retail sales of used motors in May have been up 4% year-over-year; however, down 3% in comparison to April. After experiencing wildly fluctuating costs for several years before starting to slight in 2024, Cox formerly said that charges for used vehicles would continue to stabilize.