FI showroom red and grey logo
MenuMENU
SearchSEARCH

NADA: Consumers Desensitized to Gas Price Volatility

After two straight years of major spikes in gas prices, the NADA Used Car Guide doesn’t believe the most recent increase will cause consumers to overreact like they did in 2008.

by Staff
October 9, 2012
3 min to read


MCLEAN, Va. — Despite the recent spike in gas prices, the NADA Used Car Guide is sticking with its belief that consumers won’t overreact to the volatility and will continue buying vehicles that best fits their lifestyle. And based on recent wholesale pricing trends, that means trucks and SUVs.

On Monday, the national average price for a gallon of gas was $3.818, the highest ever for this time of year, according to AAA’s daily fuel gauge report. The most notable increase was felt in California, where prices jumped 50 cents in a week’s span. And as of Oct. 1, seven states claimed gas prices above $4.

Ad Loading...

But the rise hasn’t deterred the NADA Used Car Guide’s stance that gas prices will have little impact on the vehicles consumers seek out, especially since this is the second year car buyers have dealt with a summer price hike.

“Nothing has really changed,” said Larry Dixon, senior automotive analyst for the NADA Used Car Guide. “Considering that we’ve seen $4 and have been around $4 over the last couple of years, we’d need to move up into the $4.25 to $4.50 range to see the reaction we’ve seen in the past.”

In July 2008, gas prices rose to $4.11 per gallon, causing car owners to unload their trucks and SUVs in a panic. That reaction drove down residual values for those vehicles at auction, and forced automakers to cut production of trucks and SUVs. But the NADA Used Car Guide said consumers are now desensitized to that volatility.

When gas prices spiked 42 cents in August, the NADA Used Car Guide reported that the rise was having the opposite effect on auction prices, with prices for large pickup trucks declining by $525. In comparison, prices for a three-year-old compact fell by $1,350, while the average price of a three-year-old compact hybrid fell by $2,718.

In September, wholesale prices for compact cars fell another 3 percent from August, while large pickups and SUVs dropped 1.2 and 1.9 percent, respectively. On a year-over-year basis, wholesale prices on one-to-five-year-old large pickups and SUVs increased 5.9 and 2.1 percent, respectively, while wholesale prices on compact cars increase slightly by 0.3 percent. Wholesale prices on a mid-size car fell 1.3 percent.

Ad Loading...

Dixon believes the most recent spike is only temporary, and listed out a recent string of events that led to the price increase. There was the Aug. 6 fire at a Chevron refinery in Richmond, Calif., and a power failure earlier this month at an Exxon Mobile refinery in Southern California. Also this month, Chevron shut down an oil pipeline that moves crude oil to Northern California.

A problem with a pipeline in the Midwest and anti-American sentiment in the Middle East also factored into the rise of gas prices.

“Consumers are going to pick a vehicle that best meets the needs of their household, and we know American consumers tend to favor trucks and SUVs,” Dixon said. “We just haven’t seen that dramatic reaction we saw in 2008. And we’ve experienced two spikes in gasoline prices, the largest one occurring last year. “

 

Topics:F&I

More F&I

Easycare White paper cover See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
SponsoredSeptember 8, 2026

How AI-Powered Coaching Is Transforming F&I Performance

See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability

Read More →
Assurant, Sell Value Build Trust, F&I Series, Expert Trainer Trent White
F&ISeptember 2, 2026

Sell Value, Build Trust

In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.

Read More →
2026 StoneEagle summary
F&Iby Hannah MitchellAugust 31, 2026

F&I Sales Give Dealers First-Half Lift

Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.

Read More →
Ad Loading...
man with white hair and glasses delivering a speech standing next to a podium
F&Iby Lauren LawrenceAugust 31, 2026

Targeted Training Drives Results

Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.

Read More →
Man's hand holding pen over a paper document
F&Iby Justin B. GasmanAugust 20, 2026

Double the Change, Double the Chance

When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.

Read More →
Laptop computer, tablet, calculator and notebook on a desk
F&Iby John TabarAugust 20, 2026

Just Do It

F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.

Read More →
Ad Loading...
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

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 →
Leading with Purpose thumbnail. Trent white pictured in front of titled graphic.
F&IAugust 5, 2026

Leading with Purpose

In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.

Read More →
Photo of a keyring with mltiple keys, including a car key fob, on a white surface
F&IJuly 15, 2026

Integrating Nontraditional F&I Products

The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.

Read More →
Ad Loading...
Photo of businessman's hands holding eyeglasses at a desk
F&Iby Rick McCormickJuly 7, 2026

Trust Is Personal

Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.

Read More →