Rising Gas Prices Fuel Desire for Used Cars

There is a growing demand for smaller used cars, as gas prices continue to climb. Nationwide, gas prices have been increasing due to more global oil demand, which is expected to reach record highs. In addition to rising usage of oil in developing countries, there have also been disruptions in oil supply because of various disagreements mostly in the middle-east.

We are seeing a shift to smaller vehicles that offer better gas mileage, but the surge in demand means that overall vehicle inventory may be lower than normal, especially in the used car market. There are reports that some dealers are having a hard time keeping a sufficient inventory, as more buyers are looking for better fuel savings and relief from high prices at gas stations.

The growing popularity of more fuel efficient small cars provides current owners a chance to get top price when selling or trading in their used vehicle. Car dealers are also cashing in on the benefits of higher consumer demand. U.S. auto sales have been climbing overall, driven in large part by people switching to smaller cars. Recent car sales are assisted by several automakers rolling out small car models in order to keep their dealer stocked supplied with sufficient inventory of new small cars.

According to some estimates, compact cars now account for approximately 23 percent of retail sales in the United States, which is the highest level since 2009. As a result, small cars are quickly moving off dealer lots. Combined, sub-compact and compact cars were on dealer lots an average of 42 days before being sold, compared with a previous industry average of 48 days.

Another indication of the current smaller car sales trend is a recent report on the sales volume of larger vehicles, such as pick-up trucks. Estimates show that full-size pickup trucks are sitting on dealer lots an average of sixty eight days, which is eleven days longer than one year ago.

Car dealers that focus more on used cars for sale might offer a larger selection of inventory.

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