A Ford mustang is seen at a used automotive dealership in Montebello, California on Could 5, 2025.
Frederic J. Brown | AFP | Getty Photographs
DETROIT — Used car costs final month eased from their latest excessive in April as customers who might have wanted a car however feared worth hikes because of tariffs flocked to buy a automotive or truck, in response to a carefully watched barometer of pre-owned costs.
Cox Automotive’s Manheim Used Vehicle Value Index — which tracks costs of used autos bought at its U.S. wholesale auctions — decreased 1.5% from April to Could, however remained 4% increased than a yr earlier. April’s degree was the highest since October 2023.
“Wholesale appreciation traits had been remarkably sturdy in April, however the market gave a few of that power again in Could, although values stay nicely above final yr’s ranges,” mentioned Jeremy Robb, senior director of financial and trade insights at Cox Automotive.
Retail costs for customers historically comply with adjustments in wholesale costs, however they haven’t fallen as shortly as wholesale costs lately.
Whereas President Donald Trump‘s tariffs of 25% on new imported vehicles and lots of elements don’t straight affect used automotive gross sales, adjustments in new car costs, manufacturing and demand have an effect on the used automotive market, which is how nearly all of Individuals buy a car.
Demand has stayed comparatively sturdy as stock ranges for used autos – 2.2 million – stay low in comparison with historic ranges. That comes as customers have been holding on to their autos for longer and because the trade offers with much less manufacturing lately amid the coronavirus pandemic and world provide chain shortages.
Cox studies retail used car gross sales in Could had been down 3% in contrast with April however increased yr over yr by 4%.
Cox beforehand mentioned it was seeing used car costs continue to stabilize after swinging wildly for a number of years earlier than beginning to settle down in 2024.