Rising Fuel Prices May Be Boosting Small Cars at Auctions

As gas prices rise, small cars are continuing to perform well at auction, according to Black Book’s April 23 Market Insights report.

Overall, average car segment wholesale values increased 0.29% last week, compared to a 0.15% rise the week before. Compact, mid-size, and full-size cars were the best-performing vehicles within the car segment, as their values rose 0.56%, 0.57%, and 0.42%, respectively, through the week.

“Compact cars see continued strength in the market, helped by rising gasoline prices. Their values have increased by over 3% in the last six weeks,” said Anil Goyal, executive vice president, operations for Black Book.

Overall truck segment values also held strong last week; overall truck segment values depreciated by 0.04% last week, compared to 0.16% depreciation the week before. Subcompact and compact crossovers/SUVs were two of the strongest performing segments, as their respective values rose 0.23% and 0.08%. Small pickups, compact vans, and minivans also saw their average wholesale values rise through the week.

The two weakest performing truck segments last week were compact luxury crossovers/SUVs and mid-size luxury crossovers/SUVs.