Prices for fuel-saving used cars to drop

[atlaw4u]

5% dip expected in June as cheaper gas lowers demand

David Shepardson - DETROITNEWS -

Prices for fuel-efficient used vehicles are falling with lower gas prices, the National Automobile Dealers Association said Tuesday.

The resale values of many compact and midsize vehicles are expected to drop 5 percent in June, a trend that will continue this summer, said Jonathan Banks, senior analyst with the National Automobile Dealers Association Used Car Guide. Prices on those used vehicles made double-digit percentage gains from January through May.

Nationwide, gas prices are now averaging $3.71 a gallon — down 3.5 percent from a year ago — and well below the $3.94 a gallon average in April.

Auto analysts expect light trucks — SUVs, pickups and minivans — will make up a bigger share of total auto sales in May as lower gas prices have brought truck buyers back to showrooms. Gas prices below $4 a gallon also make it harder for dealers to sell electric vehicles and plug-in electric hybrids.

"The trend of rising prices for used cars will reverse course in June because of declining gasoline prices combined with a normal seasonal slowdown in consumer demand for used cars," Banks said.

Overall used-car values will decline about 2 percent, while truck values will fall about 1 percent or half of the amount of cars, according to the June edition of the NADA Official Used Car Guide... [Read More]

[PaleMelanesian]

Everybody rejoice! Gas prices are down 3.5 percent!!!!!111

seriously?

At least it's good news for getting more fuel efficient cars out there at a lower price.

[08EscapeHybrid]

7 months and 6,000 miles after I bought my FEH, it still blue books for more than $1,000 over what I paid for it.

[herm]

oil at $88 a barrel today..

[ALS]

They'll drop when prices drop below three dollars a gallon and I really don't see that happening anytime soon. Here in the "burg" even with the slight drop I saw on the gasoline futures it still works out to $3.58 a gallon. Of course that is with today's five cent drop and no one want's to talk about the last five or six trading days where the price went up.

If the author thinks that when gas drops below three fifty a gallon people are going to be rushing back the FSP SUV he is very mistaken.

If the average driver is filling up once a week with 16 gallons of gas what real savings are they going to see with a quarter drop in prices. Saving four dollars a week on gas isn't going to get me all warm and fuzzy so that I'm running out and buying a normal car when my energy cost for my utilities and grocery bills are sky rocketing up.

Just for an example: Seventeen months ago I replace an old top load washer at work with an energy efficient front loader. Dropped my water usage by 3,500 - 4,000 gallons a month. This year on average I'm running anywhere between 300 and 400 gallons below that initial 3.500 - 4,000 gallon savings. My water bill is going up again because of the new rate increases. I've been staring at the bill wondering what the hell did I do, to see my bill jump another $20 - $30 a month after the $75 - $80 drop last year.

This same thing is happening all over the country gasoline may be dropping but food utilities and taxes are going up for everyone. People are looking everywhere for ways to save money and because of that I just don't see fuel efficient cars dropping in price in the near future.

Even with the cheap fuel prices right after I bought my Prius I still yearn for the days when I could fill her up for less than $25. Today it's costing me close to forty dollars to fill her up every three weeks.

oil at $88 a barrel today.

Two reasons, one there is an over supply of oil on the market due to the worldwide economic down turn.
Then add in Greece that is toast and Spain is close to collapse. Look at the Euro, it is trading below 1.25 and dropping fast and talk is that we could see parity with the dollar by labor day. China is also in huge economy trouble, they are a net exporter and their economy is export based and with the west's economy in a major down turn and the Euro Zone in crises mode it isn't helping.

[wick1ert]

ALS, I think you're giving the average american too much credit here. Isn't the F-150 still the #1 selling vehicle in the US? I honestly don't think most people are intelligent and forward thinking enough not to drop back to their old habits. As Dr. House once said "people don't change, things change". The large majority of people only look at the "here and now".

For me, there's not a whole heck of a lot that would convince me to go back to an FSP from my 50 MPG. Would I be willing to drop down into the 40s? Absolutely, if the right car at the right price showed up - can we get an FFH or TCH in a hatch, please? And no, not a "v".

[08EscapeHybrid]

I <3 our top load washers at work. (Two 60lb Unimacs and a ~20lb Frigidaire) I finally talked my roommate into getting one for the house. She was hesitant at first, but since it uses a lot less hot water, our electric bill has been under $50/mo lately (we have not been running the a/c)

[SoSlo]

$2k or more off on gen iii prius in my area.

[WriConsult]

With gas now above $4.25 on the west coast, don't expect used Priuses to get cheap anytime soon.

[SoSlo]

There are 4 used prius 2008-9 priced above the discounted price for a new 2012.
Used car prices are being driven by a different economy altogether, the buy here pay here model.

http://articles.latimes.com/2011/nov...y-two-20111101

Does making loans to the worst credit risk people and then bundling the loans into securities and having them graded AAA sound familiar?