With gas prices softening a bit throughout the country, Kelley Blue Book advised dealers to check their used inventories for five specific fuel-efficient models that could be in line for a significant price correction.

That group included the 2010 Toyota Prius, 2011 Toyota Yaris, 2011 Chevrolet Cruze, 2011 Toyota Corolla and 2011 Kia Soul.

“Although declines in fuel-sipping compacts are likely to occur slowly during the next few months, Kelley Blue Book expects steeper declines for the vehicles that appreciated most since the start of the year,” explained Alec Gutierrez, KBB’s senior market analyst for automotive insights.

“Of particular risk for correction are those vehicles that are currently selling at auction near manufacturer’s suggested retail price,” Gutierrez continued, noting the Toyota Prius is a prime example of a vehicle that is likely set for a correction.

According to KBB’s data published in the May Blue Book Market Report, the 2010 Prius increased more than $3,000 since Jan. 1 and has a current auction value equal to 90 percent of its original MSRP.

“Dealers will be hard pressed to convince consumers to pay $23,500 for a used 2010 Prius at current Kelley Blue Book Retail Value, especially since a brand new 2012 Prius can be had for $24,000,” Gutierrez predicted.

“Dealers will not continue to pay premium prices at auction, especially as they continue to see their margins squeezed,” he stressed.

“Dealers that have purchased any of the vehicles on the list below in the past 30 to 60 days should consider selling these vehicles sooner rather than later, since values may decline by 10 percent or more in the next 60 days,” Gutierrez recommended.

Where Will Fuel Prices Hit Bottom?

With the price at the pump swaying so many decisions dealers might make in the lanes and on the lots, KBB reviewed the most recent fuel-price trends.

Analysts noted gas prices dropped 17 cents per gallon nationally since April 3, and in California, it fell nearly 20 cents. In addition, they mentioned May 8 oil prices came in below $97 per barrel for the first time since February due to a weaker than expected jobs report adding to a string of bad economic news in recent weeks.

“Fears of gas prices hitting $5 per gallon or more are quickly fading as all indications point to $3.50 per gallon gas by year end,” Gutierrez said. “Fuel prices are already down to $3.74 per gallon nationally, 23 cheaper than one year ago.

“In 2011, fuel prices peaked in May at $3.97 per gallon before falling down to $3.20 per gallon by year end,” he recollected.

“Gas prices could repeat or surpass these lows once again this year, especially with Europe in recession,” Gutierrez went on to say. “With the United States economy continuing to improve only moderately, United States gas consumption declining and increasing supplies. This will come as welcome news to consumers that have been feeling pain at the pump during these last few months.”

Full-Size Trucks Take a Hit

Last month’s Blue Book Market Report anticipated slight declines for full-size trucks and sport utility vehicles during the second quarter, and so far truck values are performing as expected.

KBB indicated full-size pickup truck prices fell by a scant 0.5 percent in April while full-size SUVs dropped by a slightly more pronounced 1.7 percent. On a year-to-date basis, prices for full-size pickups and SUVs remain up by 1.6 percent and 0.2 percent respectively.

“Values should remain stable and continue to suffer only modest declines as we move further into spring,” Gutierrez predicted. “This is largely due to the tightened supply of large, fuel-inefficient vehicles caused by market panic in 2008.

“Surprisingly robust trends in the construction industry also are providing stability for full-size trucks, mitigating the potentially damaging effects of stubbornly high gas prices and the disappointing pace of economic recovery,” he surmised.

To back up his assertion, Gutierrez mentioned that according to the U.S. Department of Commerce, total construction spending in March was 0.1 percent above an already strong February and 6.0 percent higher than March of last year. During the first three months of this year, construction spending was 6.7 percent higher than the same quarter last year.

“This increased construction spending in March, coupled with a 30.1 percent year-over-year increase in private housing units authorized by building permits, suggests that demand for work-capable trucks will be sufficiently high to prevent any significant decreases in full-size truck values during the second quarter,” Gutierrez indicated.

Analysis of Midsize Trucks and SUVs

Continuing with a discussion about trucks and SUVs, KBB discovered prices for midsize pickups and SUVs saw comparatively little change.

However, compared to this same time last year, the firm said values for midsize pickups are 7.7 percent higher and mid-size SUVs are 8.8 percent higher than at the end of last April.

“Concerns about future supply volume may have spurred recent interest in midsize trucks since the 2012 model year marked an end of production for several vehicles in these segments, including the Ford Ranger, Ram Dakota and Dodge Nitro,” Gutierrez explained.

“With the national price of gas still hovering above $3.80 through April, shoppers wary of fuel-thirsty full-size trucks may be more interested in midsize trucks and SUVs, which offer slightly better mileage and plenty of utility for most consumers,” he continued.

“Although the increasing popularity of low displacement, high output engines like Ford’s V6 EcoBoost make full-size trucks and SUVs more competitive when considering new vehicles,” Gutierrez went on to say. Among used vehicles, midsize trucks offer better fuel economy at a lower price point without sacrificing too much utility.”

Affordable Luxury: Used Saabs

Since declaring bankruptcy late last year, KBB acknowledged values of late model used Saab’s have been in free fall.

Analysts found the 2010 Saab 9-3 has declined by $4,500 since December, while the 2009 9-5 has dropped a comparable $3,800.

“Values have finally stabilized in recent weeks and are now at a point that might attract the right consumer,” Gutierrez pointed out.

For example, current Kelley Blue Book Auction Value for a 2010 Saab 9-3 is about $14,250, a sum Gutierrez called a “relative bargain” compared to other vehicles available at the same price point.

“At this price, a 2010 Saab 9-3 is as affordable as a 2010 Nissan Altima, a 2009 Kia Amanti or a 2009 Toyota Camry,” Gutierrez insisted.

“When comparing these vehicles side by side, the Saab is worlds apart in terms of refinement and performance making this vehicle a must have for someone looking for a sporty luxury sedan at a bargain basement price,” he continued.

“The only downside would be the lack of a warranty, which is certainly a valid concern for most consumers,” Gutierrez conceded. “For those that can’t look past the warranty, a 2009 9-3 might make a suitable alternative since all Saab vehicles sold while General Motors still owned the company will be covered under their original factory warranty.

“The 2009 can be had for about $2,000 less than the 2010 variant and it is mechanically identical, making it all the more attractive,” he concluded.