Higher Gas Prices Increasing Used Sedan And Hatch Values

As vehicle buyers move to purchase SUVs and crossovers, increasing gas prices have led to record prices for used sedans and hatchbacks, Edmunds reports.

In the first quarter of 2018, the average transaction price for a used vehicle in the United States was $19,657, a 2.2 per cent increase over the first quarter of 2017. This figure is also a massive 18 per cent increase from five years ago.

“Used-car shoppers are typically more price-sensitive to changes in the market, but this is the first time in years that we’re seeing renewed demand for smaller vehicles,” senior manager of industry analysis at Edmunds, Ivan Drury said.

“With rising fuel costs breathing fresh air into this segment, subcompact and compact cars are finally retaining value again.”

Now isn’t the best time to buy new wheels

As gas prices continue to rise, prices for 3-year-old compact cars have jumped by 3.9 per cent in the first quarter. Similarly, prices for 3-year-old subcompact cars have risen by 3 per cent.

Interestingly, rising gas prices have yet to result in a drop in residual values for SUVs and trucks. According to the report, this is because SUV buyers are willing the deal with the added fuel costs.

“[There’s] an abundance of shoppers who still place enough value on increased cargo capacity, ride height, and other SUV and truck features to bear the costs of lower fuel economy and higher price tags,” the publication said.

However, analysts note that if gas prices jump beyond $4-a-gallon, resale values of SUVs and trucks could suffer.


  • Hello Ford…

    • Stephen G

      You suggesting Ford should start manufacturing used sedans?

      • Craig

        No doubt he is suggesting – as I am about to – that Ford should rethink the plan NOT to sell new CARS.

        • Stephen G

          Nobody wants new ones…just used ones.

          • Craig

            Give it time.

      • Nope..Suggesting what everyone stated at the time when Ford made the decision to not invest in passenger cars. Everyone stated it was a bad idea due to expected rising gas prices.

      • Spyder Hole Fantome

        I think used sedan manufacturing is going to be big… Such an untapped market… huge potential.

    • Merc1

      Exactly. Time to rethink that ridiculously short sighted plan of theirs to quit making cars.


  • 2sfhim


  • Auf Wiedersehen

    But the market is going all trucks and SUVs…people don’t care about gas prices, right FORD?

    • Dennis Scipio

      But the article said that used sedans and hatchback prices are increasing due to rising gas prices as well, no one wins in both types of vehicles like Crossovers/SUVs and Sedans hatchbacks.

    • MarketAndChurch

      There are those who do. Which Ford is intending to woo with it’s upcoming hybrid SUV’s.

      • Spyder Hole Fantome

        I’m looking forward to the return of the Ford Taurus X… Freestyle, yo!!!

    • Auf Wiedersehen

      You all really need to learn sarcasm…

  • Stephen G

    People that purchase used vehicles tend to be cost conscious. This is trending because SUV’s & trucks have a higher resale value than cars. People are now realizing the can buy a good used car at a reasonable price. When gas prices get too high you’ll see a spike in demand for new cars.

  • Alfa Giulia QV

    Higher gas prices increasing demand for sedans and compacts in the used car market? It’s not like we couldn’t have seen that one coming. I assume that if gas prices increase even more the same will happen for new cars. Wait, what am I saying? That can’t happen. The American car is a crossover. Ford said so and they wouldn’t like about that would they? No, that’s impossible. This is merely a fad, a fluke. SUVs are here to stay.

    • Spyder Hole Fantome

      Hemi V8s for all!

  • dumblikeyou2

    I think it depends on what constitutes a real SUV. Half of them on the road today are no more than high-riding hatchbacks built off of sedan platforms. Their fuel economy stats are on par with sedans.

    • LeStori

      The original Sports Utility was a converted sedan. Done by Ford Australia way back in 1932. So it has always been a “soft roader”.

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