Wholesale used vehicle prices were lower in May compared to April, according to Manheim.

The Manheim Used Vehicle Value Index (MUVVI) declined to 205.2, representing a 4% increase from the same time last year and a 1.4% decline from April levels.

According to Manheim, its measurement of used vehicle prices is independent of underlying shifts based on the characteristics of vehicles bought because of its statistical analysis of its database of more than 5 million annual used vehicle transactions.

Manheim reports that seasonal adjustment slightly lowered the decline, while non-seasonally adjusted values fell more than usual following the strong increase in April related to tariffs.

The non-adjusted price in May decreased by 1.5% compared to April, resulting in an unadjusted average price that was 4% higher year-over-year (YoY)

Ryan Mandell, Mitchell International’s auto physical damage solutions claims performance director, told Repairer Driven News it will take at least 90 days for the market changes to begin impacting total loss determinations.

“Wholesale appreciation trends were remarkably strong in April, but the market gave some of that strength back in May, though values remain well above last year’s levels,” said Jeremy Robb, Cox Automotive senior director of economic and industry insights, in Manheim’s report.

“Weekly wholesale depreciation trends were stronger than usual in the middle of the month but slowed down in the last week of May, with values aligning with the long-term run rates. The used retail days’ supply remains down 5% compared to last year’s levels, which is seasonally tighter than normal, as wholesale days’ supply at Manheim is also currently down 5%. While the market continues to digest the impact of tariffs, we could see a bit higher levels of wholesale depreciation over the summer. However, lower inventory levels may counterbalance those more aggressive depreciation trends in the coming months.”

Cox Automotive, which owns Manheim, reported Tuesday that just 10 days into June, the auto market has “delivered a mix of stability, surprises, and shifting trends.”

“In a market clouded by tariff uncertainty and softening sales, one thing held firm in May: new-vehicle prices,” Cox Automotive stated. “Despite cost pressures, average transaction prices barely budged — an unexpected outcome that’s making our analysts question what’s behind the stability and how long it can last.”

Erin Keating, Cox Automotive executive analyst, added that while tariff policy is adding uncertainty to the new vehicle market, prices are holding “remarkably steady, a reminder that auto industry change is often slow.”

“Many automakers are keeping true to a promise to hold the line on pricing, at least in the near term,” she said. “We are still expecting prices to move higher through the summer, as the inflationary impact of tariffs begins to hit. Right now, we believe dealer profitability is being squeezed, as costs on many products are going up, but raising retail prices in this environment is a real challenge.”

With inventory tightening and consumer behavior evolving, this week’s Auto Market Report from Cox Automotive analyzes the latest economic signals and market shifts.

April marked the strongest YoY growth in consumer spending since early January, according to the report.

The report also found a continuing downward trend in used vehicle prices, with the gap between retail and wholesale values narrowing, suggesting a more balanced market. Retail prices for model year 2022 vehicles declined 0.1% last week, and wholesale prices fell 0.4% during the same period.

“One full week into June, we are seeing more normalization of trends in both the new and used vehicle markets, as the economy seems to be stabilizing,” said Jonathan Smoke, Cox Automotive’s chief economist.

Cox noted that May’s new vehicle sales numbers delivered another surprise, falling short of already cautious forecasts. While the YoY growth remains positive, the sharp drop in the seasonally adjusted annual rate (SAAR) “signals a cooling pace that’s raising eyebrows across the industry.”

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