Logo

Used Vehicle Prices Ease from Tariff-Driven Peak but Remain Elevated

Used vehicle prices eased by 1.5% in May from a tariff-fueled surge in April but remain 4% higher than a year ago, reflecting sustained demand and limited inventory. Wholesale auction values declined slightly, while retail prices have not fallen as swiftly. Supply shortages stem from increased vehicle retention and production disruptions. Retail sales dipped 3% month-over-month but rose 4% annually, signaling continued market robustness.

Used Vehicle Prices Ease from Tariff-Driven Peak but Remain Elevated

Used Vehicle Prices Experience Slight Decline After April Peak

In May 2025, used vehicle prices showed a modest decline following a surge in April driven by consumer concerns over potential tariff-induced price increases. The Manheim Used Vehicle Value Index, which monitors prices at U.S. wholesale auctions, decreased by 1.5% from April to May, yet values remain 4% higher than the previous year.

Wholesale Prices Lead Market Trends

The index's April peak reflected accelerated buying as consumers rushed to secure vehicles before anticipated tariff hikes. While wholesale prices softened slightly in May, they continue to exceed last year’s levels significantly. Traditionally, retail prices respond to shifts in wholesale values; however, recent years have seen retail prices decline at a slower pace than wholesale prices.

Factors Influencing the Used Vehicle Market

Although recent tariff adjustments and political policies do not directly target used car sales, fluctuations in new vehicle prices, production rates, and overall demand indirectly shape the used car market dynamics. This market remains a primary source for vehicle purchases among Americans.

Inventory constraints contribute to sustained price levels. With approximately 2.2 million used vehicles available, supply is low relative to historical norms. This shortage results from prolonged vehicle retention by owners, combined with disrupted production caused by recent global supply chain challenges and the pandemic.

Sales Trends and Market Outlook

  • Retail used vehicle sales in May declined by 3% compared to April.
  • Year-over-year sales demonstrate a 4% increase, indicating ongoing demand.

Market experts note that after years of volatility, the used vehicle market prices have started to stabilize in 2024, although fluctuations persist due to external economic pressures.

Retailers Adjust Prices Amid Tariff Impact on Consumer Goods
Retailers Adjust Prices Amid Tariff Impact on Consumer Goods

In response to tariffs ranging from 10% to 30% on imports, major U.S. retailers, including Costco, Walmart, and Nike, have already raised or plan to raise prices on various consumer goods. While some companies are cautiously managing price hikes, others maintain steady pricing due to diversified sourcing or domestic production. These adjustments reflect ongoing efforts to manage supply chain challenges and inflationary pressures.

Ford Reports 16% U.S. Sales Increase in May Driven by Employee Pricing
Ford Reports 16% U.S. Sales Increase in May Driven by Employee Pricing

Ford reported a 16.3% increase in U.S. vehicle sales for May 2025, driven by a 17.2% rise in combustion engine vehicles and a nearly 29% increase in hybrid sales. The automaker's employee pricing program continues to boost demand despite tariff-induced price hikes. However, all-electric vehicle sales dipped by 25%, while the overall industry sales pace cooled compared to prior months.

Trump Urges Apple to Manufacture iPhones in the US, Threatens Tariffs
Trump Urges Apple to Manufacture iPhones in the US, Threatens Tariffs

President Trump is urging Apple to manufacture its iPhones in the United States, threatening a 25% tariff on products made overseas, including in India. This push follows a conversation with Apple CEO Tim Cook and broadens to encompass all smartphone manufacturers. Industry experts warn that relocating production to the U.S. could dramatically increase costs for consumers. The debate surrounding tariffs continues as the White House remains unclear about their implementation.

Indian PC Market Surges with 3.3 Million Shipments in Q1 2025
Indian PC Market Surges with 3.3 Million Shipments in Q1 2025

India's PC market thrived in Q1 2025, shipping 3.3 million units, reflecting an 8.1% year-over-year growth, bolstered by high demand for notebooks and AI-powered devices. Notably, the premium and gaming segments contributed significantly to this expansion, alongside increased online sales. HP led the market share, followed closely by Lenovo and Dell, while Acer notably surged in the consumer segment.

Mallikarjun Kharge Critiques 11 Years of Modi Government's Failures
Mallikarjun Kharge Critiques 11 Years of Modi Government's Failures

On the 11th anniversary of the Modi government, opposition leader Mallikarjun Kharge sharply criticizes the ruling administration for rising unemployment, inflation, and unfulfilled promises. He emphasizes the negative impact on youth, farmers, and marginalized communities, asserting that the initial promises of 'good days' have shifted to feelings of despair among the populace.

European Companies Reduce Investments in China Amid Economic Slowdown
European Companies Reduce Investments in China Amid Economic Slowdown

European companies are scaling back investments and cutting costs in China amid a slowing economy and heightened market competition, according to the 2025 Business Confidence Survey by the European Chamber of Commerce in China. Overcapacity in industries like electric vehicles and rising trade tensions with Europe and the U.S. are contributing to declining profits and lowered business confidence across nearly 500 surveyed firms.

Digital Misinformation Threatens U.S.-China Trade Truce
Digital Misinformation Threatens U.S.-China Trade Truce

Recent misinformation regarding the U.S.-China trade truce is proliferating across social media, casting doubt on the agreement. Falsehoods suggest Americans are panic-buying Chinese goods, perpetuated by state media. Investigations reveal a coordinated disinformation campaign aimed at luxury brands, complicating the narrative as trade negotiations evolve.

India Launches Bharat Forecasting System for Enhanced Weather Predictions
India Launches Bharat Forecasting System for Enhanced Weather Predictions

India has unveiled the Bharat Forecasting System (BFS), the world's highest-resolution weather model operating on a 6-kilometre grid. Powered by the supercomputer Arka, this advanced system aims to enhance weather predictions for disaster management and agriculture, addressing the increasing impact of weather anomalies on the economy. The BFS utilizes a network of Doppler Weather Radars, significantly improving localized forecasting capabilities amidst rising food prices influenced by climate extremes.

South Korea's May Exports Decline Amid U.S. and China Tariff Pressures
South Korea's May Exports Decline Amid U.S. and China Tariff Pressures

South Korea experienced a 1.3% drop in exports in May, marking the first fall in four months. Declines in shipments to the United States and China were key contributors, reflecting the influence of ongoing tariff disputes. While semiconductor exports rose markedly, automotive exports fell, and imports decreased by 5.3%, resulting in a trade surplus of $6.94 billion, the largest since June 2024.

May Jobs Report Forecast: Hiring Growth Slows to 125,000 Amid Economic Uncertainty
May Jobs Report Forecast: Hiring Growth Slows to 125,000 Amid Economic Uncertainty

The May employment report is forecasted to show a slowdown in job growth to 125,000, down from April's 177,000, reflecting cautious business sentiment amid tariff-driven economic uncertainty. Mixed data show softening optimism but resilient labor demand. The report's outcome will be pivotal for assessing Federal Reserve monetary policy amid ongoing inflation risks and economic pressures.

Tharoor Urges Pakistan to Curb Terrorism Ahead of Indo-Pak Talks
Tharoor Urges Pakistan to Curb Terrorism Ahead of Indo-Pak Talks

Indian lawmaker Shashi Tharoor emphasized that peace talks with Pakistan are only possible if Pakistan takes firm action against terrorists. He rejected external mediation for the Kashmir dispute, insisting on bilateral dialogue. Tharoor also led an Indian delegation meeting with US Vice President JD Vance to discuss counter-terrorism and strategic cooperation amid rising tensions following attacks in Jammu and Kashmir and India's cross-border strikes.

CESC Launches Massive Sapling Drive to Celebrate World Environment Day 2025
CESC Launches Massive Sapling Drive to Celebrate World Environment Day 2025

Chamundeshwari Electricity Supply Corporation (CESC) commemorated World Environment Day 2025 by distributing over 8,000 saplings to staff across five districts, encouraging each to plant two trees. The initiative, supported by KPTCL and local groups, includes week-long environmental programs with each office mandated to plant at least five saplings. This green drive highlights the importance of ecological conservation for community health and sustainability.