With petrol prices starting to fall, so at last are the prices for fuel efficient vehicles.
According to Kelley Blue Book’s kbb.com, prices increased close to 25 per cent through 20 weeks of consecutive gains. However, values for fuel efficient used vehicles have now peaked as for the first time since January, values for compact, sub-compact and hybrid cars have started to decline.
Analysts see some of these values dipping into the red for the first time since the turn of the year after petrol prices peaked in the US in May at an average of $3.98 before dropping steadily to $3.71.
It is expected that petrol prices in the US will continue to fall through the summer months after Saudi Arabia announced it would increase crude oil production to 10 million barrels a day – that’s 13 per cent more than May levels. If this prediction holds true, Kelley Blue Book expects used car prices to slip an additional three-five per cent.
According to Alec Gutierrez, the manager of vehicle valuation for Kelley Blue Book, fuel efficient vehicles will remain a smart purchase for the budget conscious irrespective of where used car values end up. However, it may be best to hold off on purchases until after the summer when values should be more stable.
