By Steven Symes 
We reported before how wholesale used car prices increased in April, but for the first part of May they went in the other direction. In other words, at least on the wholesale side of the market, things are changing rapidly as multiple big market forces are at work affecting overall behavior.
Back in April, the Manheim Used Vehicle Value Index, which measures prices of wholesale auction vehicles, increased 4.9 percent year-over-year. It also marked a 2.7 percent increase versus March 2025.
Some thought that meant automatically used car prices on the open market would increase, but it doesn’t always work that way.
For the first half of May, the Manheim Used Vehicle Value Index dropped 1.1 percent versus the level in April. Interestingly, Cox Automotive says the index is “stronger than usual” with the mid-May level sitting at 4.3 percent higher than for May 2024 with the non-adjusted price change.
In other words, things are complicated in the market, but it doesn’t look like used car values are going to skyrocket like during those crazy days of covid lockdowns. Some were predicting that sort of effect from President Trump’s tariffs, postulating fewer cars that sell for more would be imported, putting pressure on the used vehicle market.
Plus, as the cost of imported parts increases, some were predicting more whole vehicles would be salvaged for their components, further constraining supply. But that might have been overblown, although it’s probably too early to call it quite yet.
This is why we’re not prone to panic about different aspect of the automotive market changing. While one thing might shift dramatically, other forces can also shift, counterbalancing that. And this seems to be what’s playing out now.
We’ll keep monitoring the market, but for now things on the wholesale side seem to be evening out at least a little. It will be interesting to see the full May numbers once those are available.
Image via Berto Sandoval/Facebook Marketplace