A Ford Mustang is seen at a used car dealer in Montebello, California, on May 5, 2025.
Frederic J. Brown | AFP | Getty images
DETROIT – The prices of the used vehicle last month withdrew from their recent summit in April as consumers who may need a vehicle but feared price increases due to flush rates to buy a car or a truck, according to a closely viewed barometer.
The COX Automotive used vehicle value index – which follows the prices of used vehicles sold in its wholesale American auctions – decreased from 1.5% from April to May, but remained 4% more than a year earlier. The level of April was the highest since October 2023.
“The wholesale assets were remarkably strong in April, but the market made part of this force in May, although the values remain much higher than last year levels,” said Jeremy Robb, principal director of economic information and industry at Cox Automotive.
Consumers' retail prices traditionally follow changes in wholesale prices, but they have not dropped as quickly as wholesale prices in recent years.
While President Donald Trump's prices of 25% on new imported vehicles and many parts have no direct impact on second -hand car sales, changes in new vehicles, production and demand affect the second -hand cars market, which is the majority of Americans buy a vehicle.
The demand has remained relatively strong because the inventory levels for used vehicles – 2.2 million – remain low compared to historical levels. This occurs while consumers are causing their vehicles longer and the industry has been dealing with less production in recent years in the middle of the coronavirus pandemic and global supply chain shortages.
COX reports that second -handed vehicle sales in May fell 3% compared to April, but one year to 4% higher.
Cox previously said that he saw that second -hand vehicles prices continue to stabilize after swinging wildly for several years before starting to calm down in 2024.