Analyzing Used Car Price Trends and Predictions for May 2025

Across the nation, used car prices increased in April across all segments. S&P Global Mobility points out that economic uncertainty related to federal tariffs is contributing to this trend.

Collected data indicates that prices increased almost twice as much as usual for this time of year, and sales more than doubled compared to the same period last year. What is the reason for this? Analysts suggest they anticipate a disruption in the supply of new cars, which might lead to higher used-car prices.

Their expectations include:

• Vehicle production forecasts in North America for 2025 and 2026 have been decreased. These adjustments mark the largest reductions since the pandemic.

• Inventory of new cars is expected to drop as consumers rush to secure vehicles already on dealer lots.

  
  

Combining these factors, consumers unable to find the new cars they desire will probably shift to the used-car market. Additionally, some consumers will act swiftly to avoid expected price increases. Trade negotiations are ongoing as of this writing; if new car prices rise, it's likely that used car prices will also increase.