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.
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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.
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