Toronto, Ontario -- The price of used vehicles sold in the U.S. is easing but remains high compared to the beginning of the year.
According to the Manheim Used Vehicle Index, prices fell 1.1 percent during the first two weeks of May. Despite this monthly decline, the index remains 4.4 percent higher than May 2024, indicating sustained year-over-year growth in wholesale used-vehicle prices.
This shift follows a robust rise in April, where prices surged by 2.7 percent over March, marking the most significant monthly gain since July 2024. However, as May unfolds, the market appears to be stabilizing.
Segment-wise, luxury vehicles led the year-over-year gains with a 6.6 percent increase, followed by SUVs at 5.5 percent. Mid-size cars and trucks saw more modest rises of 2.3 percent and 0.5 percent, respectively. Notably, compact cars were the only segment to experience a decline, dropping 1.2 percent compared to May 2024.
In a report, Jeremy Robb, senior director of Economic and Industry Insights at Cox Automotive, noted that while April saw strong price appreciation, the gains decelerated each week, a trend that has continued into early May.
“April was a very strong month for wholesale price appreciation; but the gains decelerated each week over the course of the month, and that trend continued into early May,” said Robb.
“In the first two weeks of May, we’ve seen fairly normal depreciation trends on a weekly basis, as used retail supply remains constrained. However, some of the strength in the pace of used sales has backed off and... supply is getting slightly better. As the tariff situation evolves and the frenzy of buying activity for new vehicles calms down, we expect wholesale pricing trends to remain more normal through Q2.”
For auto repairers and recyclers, these fluctuations in used vehicle values are more than just numbers — they directly impact operations and profitability. Higher wholesale prices can lead to increased demand for repairs, as consumers opt to maintain current vehicles longer. Conversely, a cooling market might reduce the volume of vehicles entering recycling streams, affecting parts availability and pricing.
