Key Used Vehicle Segments Gain Value, Despite Gasoline Prices
Gasoline prices are currently on the rise, headed over $3 per gallon in some markets and that will change slightly the mix of new light vehicles selling. However, despite the higher gasoline prices, currently, the value of used trucks, SUVs and large sedans is rising. This helps trade-in values looking forward and strengthens the market.
The overall average used vehicle price and trade-in equity of new car consumers have been increasing for four months. NADA and National Auto Auction Association AuctionNet Data show increases in used vehicle values in almost all categories, despite the high gas prices.
The Economy Ahead
Rates appear to be on hold by the Fed, and real economic growth closer to 2 percent for several months can be expected. Improved stock market values, if corporate earnings retain strength, will continue to assist luxury vehicle sales, which were down 2.4 percent in the first quarter of 2007.
March orders for motor vehicles from manufacturers increased 3.3 percent, which should assist higher vehicle retail sales in future months.