KBB: Rise in Used Values Begins to Level
IRVINE, Calif. — Though they continued to move upward, the recent surge in used-vehicle values calmed down a bit last week, according to Kelley Blue Book.
This marked the third week in a row where the appreciation in values has become less steep.
Specifically, the was a 0.2-percent upswing, on average, in used-vehicle values last week, compared to a 0.3-percent appreciation during the week that ended April 9, and 0.4-percent rise the week before.
Moreover, the week that ended March 26 showed used values climbing 0.5 percent.
"In the past several weeks, the strength that has been prevalent in the marketplace for much of this year started to level out," said Juan Flores, director of vehicle valuation for KBB.
"The appreciation in the marketplace has primarily been driven by the spring selling season and dealers chasing a limited supply of vehicles," he added. "Kelley Blue Book is now hearing anecdotal evidence that suggests many dealers have adequately stocked their inventory and as a result values have subsided in the short term."
That said, there are "a handful" of vehicle categories that will likely show further growth. For example, the climb in subcompact and compact vehicle values is projected to persist, particularly considering the possible rise in fuel costs.
"Values for subcompact and compact vehicles are expected to continue to rise, especially if gas prices creep up through summer," Flores shared. "Last year, gas prices increased just more than $0.50 per gallon through the summer months so a similar uptick this same time of year is possible."