Car prices dipped slightly in May

(ABC36 NEWS NOW) — Despite new tariffs on imported vehicles and car parts, average new car prices in the U.S. declined slightly in May.

According to new data from Edmunds.com, the average price paid for a new car fell 0.2% compared to April, even though automaker sticker prices rose slightly by 0.2% last month.

Analysts say most of the vehicles sold in May were already on dealer lots before the tariffs took effect, helping to keep prices in check. High interest rates and low consumer confidence have also cooled demand, giving buyers more leverage in negotiations.