All evidence continues to point to a deterioration of the U.S. auto market, but the ultimate question on investors’ minds is how severe the fallout will be for the auto industry. The latest statistics from the National Automobile Dealers Association indicate used auto prices fell 10.3 percent in the month of May. The drop-off suggests market weakness is accelerating after NADA reported roughly 7-percent year-over-year pricing declines in March and April. Car Trends And The Used Market Declining used auto prices typically put pressure on new car sales as well, which have predictably been soft so far in 2017. Typically, a 1 percent decline in used car prices corresponds to a 0.2 percent decline in new car prices, Deutsche Bank analyst Rod Lache said. “We remain concerned about deteriorating affordability, delayed trade-in cycles, consumer shifts from new to used, diminishing credit availability, and deteriorating mix/pricing,” Lache wrote on Monday (check out Rod Lache's track record).Source