Used Vehicle Prices Decrease

Introduction to Used Vehicle Prices

A Ford Mustang is seen at a used car dealership in Montebello, California on May 5, 2025.
Frederic J. Brown | AFP | Getty Images
DETROIT — Used vehicle prices last month eased from their recent high in April as consumers who may have needed a vehicle but feared price hikes due to tariffs flocked to purchase a car or truck, according to a closely watched barometer of preowned prices.

Used Vehicle Value Index

Cox Automotive’s 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. April’s level was the highest since October 2023.
"Wholesale appreciation trends were remarkably strong in April, but the market gave some of that strength back in May, though values remain well above last year’s levels," said Jeremy Robb, senior director of economic and industry insights at Cox Automotive.

Impact on Retail Prices

Retail prices for consumers traditionally follow changes in wholesale prices, but they have not fallen as quickly as wholesale prices in recent years.
While President Donald Trump’s tariffs of 25% on new imported vehicles and many parts do not directly impact used car sales, changes in new vehicle prices, production and demand affect the used car market, which is how the majority of Americans purchase a vehicle.

Demand and Inventory Levels

Demand has stayed relatively strong as inventory levels for used vehicles – 2.2 million – remain low compared with historical levels. That comes as consumers have been holding on to their vehicles for longer and as the industry deals with less production in recent years amid the coronavirus pandemic and global supply chain shortages.
Cox reports retail used vehicle sales in May were down 3% compared with April but higher year over year by 4%.

Stabilization of Used Vehicle Prices

Cox previously said it was seeing used vehicle prices continue to stabilize after swinging wildly for several years before starting to calm down in 2024.

Conclusion

In conclusion, used vehicle prices have eased from their recent high in April, but remain higher than last year’s levels. The market is expected to continue stabilizing, with demand staying relatively strong and inventory levels remaining low.

FAQs

Q: What is the current trend in used vehicle prices?

A: Used vehicle prices have eased from their recent high in April, but remain 4% higher than a year earlier.

Q: What is the Manheim Used Vehicle Value Index?

A: The Manheim Used Vehicle Value Index is a closely watched barometer of preowned prices that tracks prices of used vehicles sold at wholesale auctions.

Q: How do tariffs on new imported vehicles affect the used car market?

A: Tariffs on new imported vehicles do not directly impact used car sales, but changes in new vehicle prices, production, and demand can affect the used car market.

Q: What is the current demand for used vehicles?

A: Demand for used vehicles has stayed relatively strong, with retail used vehicle sales in May down 3% compared with April but higher year over year by 4%.