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Higher Fuel Costs Boost Efficient Cars in US Used-Car Market
(MENAFN) Rising fuel costs are reshaping the US used-car market, strengthening demand for electric and fuel-efficient vehicles while putting pressure on larger models as overall wholesale prices decline, according to Cox Automotive data.
The Manheim Used Vehicle Value Index falls to 205.9 in September, down 0.6% from the same month last year and 1.1% from August after adjustments for vehicle mix, mileage and seasonal factors.
Electric vehicle values move in the opposite direction, increasing 4.3% annually and 0.6% from the previous month. Values for non-electric vehicles decline 1.6% year-on-year and 1.7% month-on-month. Compact cars also remain relatively resilient, while pickups and SUVs lose value.
The trend is not limited to EVs. Cox's quarterly presentation shows that non-electric vehicles delivering at least 40 miles per gallon gain 9.9% in wholesale value since January, while models producing less than 15 miles per gallon lose 15%.
The widening difference reflects the growing influence of ownership and fuel expenses on vehicle values as consumers face greater pressure on household finances.
Diesel vehicles make up slightly more than 3% of wholesale inventory, but available supply reaches 39 days, 27% above the level recorded a year earlier. Record diesel prices contribute to weaker demand. Meanwhile, EV inventory declines as persistently high gasoline costs push more buyers toward vehicles with greater fuel efficiency.
Cox cuts its projection for wholesale price growth at the end of the year to 0.2%, down from the 2% forecast issued in July, citing elevated fuel costs, higher interest rates and wider economic pressures.
The Manheim Used Vehicle Value Index falls to 205.9 in September, down 0.6% from the same month last year and 1.1% from August after adjustments for vehicle mix, mileage and seasonal factors.
Electric vehicle values move in the opposite direction, increasing 4.3% annually and 0.6% from the previous month. Values for non-electric vehicles decline 1.6% year-on-year and 1.7% month-on-month. Compact cars also remain relatively resilient, while pickups and SUVs lose value.
The trend is not limited to EVs. Cox's quarterly presentation shows that non-electric vehicles delivering at least 40 miles per gallon gain 9.9% in wholesale value since January, while models producing less than 15 miles per gallon lose 15%.
The widening difference reflects the growing influence of ownership and fuel expenses on vehicle values as consumers face greater pressure on household finances.
Diesel vehicles make up slightly more than 3% of wholesale inventory, but available supply reaches 39 days, 27% above the level recorded a year earlier. Record diesel prices contribute to weaker demand. Meanwhile, EV inventory declines as persistently high gasoline costs push more buyers toward vehicles with greater fuel efficiency.
Cox cuts its projection for wholesale price growth at the end of the year to 0.2%, down from the 2% forecast issued in July, citing elevated fuel costs, higher interest rates and wider economic pressures.
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