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| Source: ALG |
Today's fluctuating gas prices affect more than the price one pays at the pump. The roller-coaster gas prices can also affect the value of one's vehicle (or to put in plain terms what a used vehicle is worth). The latest study by Automotive Lease Guide, a data mining organization which predicts what one's car will be worth in the future, reveals that based on a $1 increase in gasoline prices small, fuel-efficient vehicles (ie. Ford Fiesta, Chevy Cruze, Honda Civic, Hyundai Elantra) are worth more, while the price of gas-guzzling size, SUVs and pick ups (ie., Cadillac Escalade, Ford F-150, Toyota Tundra) prices fall as much as 10 percent. This should be no surprise to many who are in the market to either buy a vehicle or trade-in one.
Ironically, convertibles are less impacted by gas prices, as they are not typically daily drivers. Often, these are the second or even third vehicle within a household and are driven more for pleasure than daily use, according to the folks at Automotive Lease Guide. Also gas prices also affect the amount of incentives automakers and dealers place on the hood of new vehicles too. These days both large trucks and large SUVs have more incentives (ie., cash rebates, low-financing) than smaller, fuel-efficient vehicles. In fact, a number of new, smaller vehicles are rolling off the lots these days with minimal discounts, if any at all, from the dealer or manufacturer.
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