In Detroit, used vehicle prices slightly decreased last month compared to April’s peak, as consumers who feared price hikes due to tariffs rushed to buy cars or trucks. According to Cox Automotive’s Manheim Used Vehicle Value Index, which tracks pre-owned vehicle prices at U.S. wholesale auctions, there was a 1.5% drop from April to May. However, prices remain 4% higher than the previous year. April’s prices were the highest since October 2023. Despite no direct impact from President Trump’s 25% tariffs on new imported vehicles, changes in new vehicle prices, production, and demand influence the used car market, where most Americans purchase vehicles. Demand remains strong due to low inventory levels and longer vehicle retention by consumers. Retail used vehicle sales in May were down 3% compared to April but up 4% year-over-year. — new from CNBC
