The price of used cars decreased slightly in May, dropping 1.4% from April and remaining 4% higher than last year’s levels, according to Cox Automotive’s Manheim Used Vehicle Value Index. This comes as the national inventory of used vehicles plummeted by 10% to 2.8 million units, driven by cautious consumers maintaining their existing cars during a post-pandemic slump.
April forecasts from Goldman Sachs predicted new car prices would rise between $2,000 and $4,000 due to steel and aluminum tariffs imposed by the Trump administration, which has trickled down to the used market. Used vehicle prices reached an all-time high in January 2022 but have fallen nearly 20% since then.
The rising number of Americans struggling to make car payments has hit a historic high, posing a concerning sign for the overall economy.
Source: https://qz.com/used-car-prices-down-tariff-fears-1851783843