Interest in Fuel-Efficient Cars Followed January Gas Price Spike, AutoTrader Reports
A report by AutoTrader.com revealed that the notable increase in gas prices in January pushed used-car shoppers on its site toward fuel-efficient vehicles.
ATLANTA — A report by AutoTrader.com revealed that the notable increase in gas prices in January pushed used-car shoppers on its site toward fuel-efficient vehicles.
According to the New Car Insights Report, the national average for a gallon of fuel rose to nearly $3.40 per gallon, a 30 cent increase over the same time last year. With that increase in gas prices came a jump in interest for more fuel-efficient compact and midsize sedans from December 2011 to January 2012, in both the certified pre-owned (CPO) and used (non-CPO) arenas.
This trend was most evident in the lists of Big Movers, which include vehicles that have generated significantly more interest in one month compared to the month prior, according to AutoTrader.com.
"Car shoppers are heavily influenced by economic factors, and the price of fuel has a strong correlation to the specific vehicles shoppers are considering," said Rick Wainschel, vice president of automotive insights at AutoTrader.com. "With the spike in gas prices in January combined with forecasts for even higher prices, interest in fuel-efficient vehicles will very likely increase in the coming months."
The increasing interest in fuel-efficient vehicles was enough to buoy the compact and midsize car segments from December to January for both CPO and late model used (non-CPO), according to the report. Month over month, the CPO compact car segment experienced an increase of 0.7 share points, while the CPO midsize car segment experienced an increase of 0.5 share points. These were the two biggest increases in share for segments.
On the late-model used (non-CPO) side, the compact car segment increased 0.5 share points month-over-month, and the midsize car segment increased the same. These also were the two biggest increases in share for any of the 13 segments.
In the CPO segment, five fuel-efficient cars showed increases in consumer interest on the list of Big Movers:
Kia Optima moved up 35 spots to No. 155
Chevrolet Cruze moved up 19 spots to No. 85
Ford Focus moved up 15 spots to No. 115
Hyundai Elantra moved up 14 spots to No. 89
Volkswagen Eos moved up 11 spots to No. 142
For used (non-CPO) vehicles, five fuel-efficient cars also showed increases in consumer interest on the list of Big Movers:
Kia Optima moved up 19 spots to No. 113
Chevrolet Cruze moved up 17 spots to No. 160
Volkswagen Beetle moved up 17 spots to No. 201
Toyota Prius moved up 10 spots to No. 78
Dodge Caliber moved up 10 spots to No. 106
More Auto Finance
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →