The cost of pre-owned cars and trucks experienced a slight reprieve last month,stepping back from April’s peak as consumers,anticipating tariff-related price increases,rushed to purchase vehicles,according to a new analysis.

The Manheim Used Vehicle Value Index, a key indicator from Cox Automotive that monitors prices at U.S. wholesale auctions, showed a 1.5% decrease from April to May. However, prices still remain 4% higher than they were a year ago. The price levels seen in April were the highest since October 2023.

“Wholesale thankfulness 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,” noted Jeremy Robb, senior director of economic and industry insights at Cox Automotive.

Typically, retail prices for consumers mirror wholesale price fluctuations, but the decline in retail prices has not kept pace with the wholesale market in recent years.

While President Donald Trump‘s tariffs of 25% on new imported vehicles and associated parts don’t directly affect the used car market,shifts in new vehicle pricing,production,and overall demand have an indirect impact on the pre-owned sector,where moast Americans acquire their vehicles.

Demand remains robust, while used vehicle inventory levels are relatively low at 2.2 million units compared to historical averages.This is partly due to consumers holding onto their vehicles longer, coupled with reduced production in recent years due to the coronavirus pandemic and disruptions in global supply chains.

Retail used vehicle sales in May decreased by 3% compared to April but increased by 4% year-over-year, according to Cox.

Cox had previously indicated that used vehicle prices were stabilizing after experiencing notable volatility for several years before begining to moderate in 2024.