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Fuel-efficient vehicle values likely to fall 15 percent, according to Kelley Blue BookPosted On Tue, July 12, 2011
With gas prices falling and supply levels increasing among car makers, Kelley Blue Book says the cost to buy a used fuel-efficient vehicle will likely fall by as much as 15 percent in the coming months.
According to the vehicle valuation website, the cost of hybrids and other gas-sipping models increased between 20 and 25 percent throughout much of the first half of 2011 because of gas prices and supply constraints. But these vehicles are expected to become more affordable by December 2011, if not earlier.
"While depreciation has been relatively mild so far, based on changes in gas prices and issues with supply, Kelley Blue Book believes a significant 15 percent correction is likely by the end of the year," said Alec Gutierrez, manager of vehicle valuation for KBB.com. Gutierrez pointed to 2008 as evidence of this, as in that year, fuel-efficient vehicle values tumbled once gas prices began declining. Similar to 2008, Kelley Blue Book expects demand for gas-sipping models to fall with the price at the pump.
Should car shoppers decide to wait and purchase a fuel-efficient vehicle later at a later date, they may want to shop around for cheap insurance quotes in the meantime, as some insurers may be offering discounts on gas-sipping models.
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