High Gas Prices Begin Affecting Prices in the Lanes

Is it possible the rise in gas prices is finally beginning to affect wholesale prices in the lanes?

It seems the shift may have started, as NADA Used Car Guide predicts the large SUV segment will  see the biggest declines over the course of the current week. Prices in this segment are expected to drop by 1 percent or $225.

Consumers may finally be turning towards more fuel-efficient rides, as the Energy Information Administration announced this week the average price of regular grade gasoline (all formulations) increased another three cents from $3.85 to $3.88.

Following the large SUV segment, the midsize van and compact car segments are also expected to drop by 1.4 percent and 1.5 percent, respectively, NADA UCG reported. And the midsize car segment is expected to see slight declines around 0.2 percent, or $25.

However, over the past two weeks, the midsize car segment saw the biggest average depreciation rate, falling 2.5 percent, while the large SUV segment trailed closely behind (2.4 percent).

On the other hand, the midsize utility segment is expected to see the biggest increases over the course of the current week to the tune of 0.8 percent, or $125. And it seems not all trucks have not been hurt by the rise in gas prices quite yet.

On the truck side, both the compact utility and large pickup segments are expected to increase by $25 apiece.

Moving along, the luxury car segment is also expected to see minor increases around 0.1 percent or $25, officials concluded.

Four- and two-week AuctionNet wholesale average prices are created by collecting all AuctionNet records for vehicles  up to five years of age for a specified period of time.  Prices are then adjusted for changes in mileage and mix.

Current week prices are based on NADA's proprietary used-vehicle value model which includes assumptions for new-vehicle prices, used-vehicle supply, gasoline prices, and other economic factors.