According to the Blue Book Market Report – October 2012, used fuel-efficient vehicle values stabilize as fuel prices begin to ease. Fuel prices have finally started to ease, dropping more than $0.10 per gallon nationally since mid-September.

This month’s report includes:

USED-CAR MARKET ANALYSIS

• Used-Car Values Continue to Ease

Used-car values declined 1 percent in September, resulting in the mildest decline in more than three months.  Kelley Blue Book expects values to continue to drop at auction through year-end, in accordance with traditional seasonal depreciation patterns.  While the rest of the year isn’t expected to offer many surprises at auction, we expect a bump in supply early in 2013 when a jump in off-lease volume returns to market…

• Used Fuel-Efficient Vehicle Values Stabilize as Fuel Prices Begin to Ease

Fuel prices have finally started to ease, dropping more than $0.10 per gallon nationally since mid-September.  Although we are getting some relief at the pump after the highest summer fuel prices on record, gas prices remain on pace to set the record for the highest yearly average of all-time… 

• Used-Car Value Declines Outpace Declines of New Cars

Through much of this year, high used-car values have prompted consumers to consider new vehicles rather than used.  Shoppers made the switch in consideration earlier this year when 2011 model-year used cars were only 4 percentage points more affordable than a new vehicle.  Since May, values of used vehicles have declined at a greater rate than new vehicles…

LATEST HOT USED-CAR REPORT  

• Used Hybrid Cars a Hot Commodity

Hybrid vehicle interest typically fluctuates accordingly with decreasing and increasing gas prices.  This concept reigned true as hybrid cars increased 10 percent in share month-over-month, a direct response to the recent jump in national gas prices…  

NEW-CAR MARKET ANALYSIS  

• New-Car Sales to Reach 14.4 Million Units in 2012; Consumers Driven by Need, Not Want

Sales in Q3 2012 improved 13.8 percent year-over-year, falling short of the 16 percent growth rate maintained through the second quarter.  For September, industry sales increased by 12.8 percent, continuing the slow growth that began in July… 

• Sales to Surpass 15 Million Units in 2013

In 2013, Kelley Blue Book expects sales to surpass 15 million units overall, driven by replacement demand, low interest rates, and compelling product redesigns and introductions.  These factors have kept vehicle sales moving forward despite powerful economic headwinds, and Kelley Blue Book analysts believe demand will remain strong enough to drive sales further along…

• Mid-Size Car Discounts Driving Sales Volume

Mid-size cars remained atop the sales charts in September, maintaining 15.9 percent market share.  Sales in the segment are up more than 26 percent year-over-year through the first nine months of 2012.  Compared to 2007, widely considered the last ‘normal’ year of sales, mid-size car sales have improved by 8.6 percent, which is an impressive feat considering overall industry sales are currently 12 percent lower than sales volume in 2007…

• New Luxury Vehicle Prices Lead Market Declines in September

New-vehicle transaction prices were flat in September, declining a scant 0.1 percent overall.  Although the market was relatively stable, the average Fair Purchase Price for the luxury segment declined by more than 1 percent.  The decline in luxury vehicles likely is due to the model-year change-over which is occurring now…

• New-Car Pricing Expected to Remain Affordable in 2013

A significant driver of the new-vehicle sales recovery has been the availability of affordable pricing and financing options for most vehicles.  The average brand-new model-year 2013 vehicle is currently retailing for approximately 94 percent of original MSRP before incentives or other promotions, and as low as 92 percent of original MSRP for the popular mid-size segment.  Inventory remains sufficient for most brands and models, keeping pricing steady and affordable, while there also are generous incentives available for a handful of highly competitive segments…

Click here to read the full Blue Book Market Report – OCTOBER 2012