Sales of Small Cars Cool as Gas Prices Fall
Posted on September 19, 2009USA Today reports that small cars aren't as hot as they were gas prices were higher. The article says small cars are also losing the most value according to Kelley Blue Book says.
Prices for SUVs and pickups fell so far when gas prices rose that they are in demand as a relative bargain - even with their prices rebounding.Gas is much lower than it was a year ago - about $1.30 less. However, it is still not super cheap at $2.55 according to the AAA's Fuel Gauge Report. It could go higher again next year. The trend for oil prices and gas prices over the past few years has been to climb. If gas does go up again those rebounding sales for SUVs won't last long.
"We do see big stuff moving," says Steve Bussjaeger, owner of the Star SuperCenter used car lot in Glendale, Calif. "They got cheap. ... People are more price conscious than gas (price) conscious."
Wholesale auto auction house Adesa says pickup prices slid 18% from August 2007 to August 2008. Since then, they have rebounded 23%.