(Bloomberg) -- Used-vehicle prices tumbled in April after making gains in the first quarter of the year — a sign rising interest rates are starting to erode sales.

Manheim, the nation’s largest used-car auction house, said prices fell 3% last month after an 8.6% rise in the first quarter. April sales fell 8% from the previous month and by the same amount versus April of 2022, Manheim reported, showing softness in the market after last year’s record prices. 

“The market has reversed course in April, with our monthly figures showing a month-over-month decline for the first time in 2023,” said Chris Frey, senior manager of economic and industry insights for Cox Automotive, which owns Manheim. “Values in April also continue to be lower year over year.”

He added that April was the eighth straight month of year-over-year price declines. 

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