Used Car Prices Drop: Market Update
- The cost of used vehicles saw a slight decrease last month, dropping 1.5% from April, according to the Manheim Used Vehicle Value Index.
- Jeremy Robb, senior director of economic and industry insights at Cox Automotive, noted that the used vehicle market gave back some of April's gains in may, but values...
- Historically,retail prices tend to follow wholesale price trends,though the adjustment has been slower in recent years.
Used car prices dipped 1.5% in May, easing from April’s peak, though they’re still 4% higher than last year, reveals the latest market update. Despite the drop,strong demand continues,driven by low inventory levels of approximately 2.2 million vehicles. The adjustment in retail prices has been slower in recent years. This shift in used vehicle prices is influenced by tariffs on new imported vehicles along with production challenges due to the pandemic and global supply chain issues; these factors impact secondary keyword_1 and secondary keyword_2 as well. News Directory 3 keeps a pulse on the latest trends, and retail sales decreased 3% compared to April, but increased 4% year over year. The market is beginning to stabilize after a volatile period. Discover what’s next for the used car market.
Used Car Prices Ease From April High, But Remain Above Last Year
Updated June 6, 2025
The cost of used vehicles saw a slight decrease last month, dropping 1.5% from April, according to the Manheim Used Vehicle Value Index. cox Automotive’s index tracks wholesale prices. Despite the dip, used car prices remain 4% higher than they were a year ago. The April peak was the highest as October 2023.
Jeremy Robb, senior director of economic and industry insights at Cox Automotive, noted that the used vehicle market gave back some of April’s gains in may, but values are still well above last year’s levels. The used car market and used vehicle prices are affected by tariffs on new imported vehicles, production and demand.
Historically,retail prices tend to follow wholesale price trends,though the adjustment has been slower in recent years. Demand for used cars has remained relatively strong, supported by low inventory levels of approximately 2.2 million vehicles. Consumers are keeping their vehicles longer, and the industry has faced production challenges due to the coronavirus pandemic and global supply chain issues, impacting secondary keyword_1 and secondary keyword_2.
Retail used vehicle sales in may decreased 3% compared to April but increased 4% year over year, according to Cox automotive.
Cox Automotive previously indicated that used vehicle prices were stabilizing after several years of volatility, with the market beginning to calm down in 2024.
What’s next
Analysts will continue to monitor wholesale and retail data to assess whether the slight dip in used vehicle prices represents a sustained trend or a temporary fluctuation. Factors such as consumer demand, inventory levels, and broader economic conditions will play a crucial role in shaping the market in the coming months.