Used car prices are going up again
FILE IMAGE - View of a used car dealership in Ridgewood, Queens New York on Jan. 19, 2022. (Photo by Pablo Monsalve/VIEWpress via Getty Images)
Used car prices have taken a U-turn for the worse.
After four straight months of declines, wholesale used car marketplace Manheim reports that prices paid for used vehicles increased by 0.7% in May.
Wholesale costs typically predict the direction retail prices will take in about six to eight weeks.
Wholesale prices had dropped 1% from March to April, which was a slower rate than seen during the preceding months, and retail prices were down the same amount in May.
The used car market has been under pressure since last year due to a shortage of new car inventory as a result of ongoing parts supply issues.
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Sales of new cars in May were down 31% from 2021 among the automakers reporting for the month.