If you’ve been putting off buying a used compact car to save more gas, you may be in for a little sticker shock, and it’s only going to get worse.
Used compact-car prices are rising in tandem with the soaring price of gas, and they could go up as much as 20% as they did last year, according to Kelley Blue Book.
Used compact cars rose 0.4% in February but price increases started picking up toward the end of the month, going up 1.3% during the week ended March 2. The average used car was priced at $11,124 at wholesale auctions, the places that car dealers go to buy more used cars for their lots.
As in past gas price spikes, there is no surprise about which used cars are suddenly seeing the biggest turnaround in demand:
“The 2010 Toyota Prius led in gains, increasing in value $1,370 through the month of February,” said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book. “Dealers have been aggressively bidding on fuel-efficient vehicles at auction as consumer demand increases in response to rising gas prices.”
KBB says that as soon as gas prices start to ease, compact car prices will fall with them.