Fuel prices have been dramatically high this year. Has this had any effect on used car prices?
A comparison between late August and February by Autovista for similar cars showed that higher fuel costs have affected sale prices.
Used values of SUV-dedicated makes like Jeep
and Land Rover, which typically suffer low fuel economy, have dropped more than other brands.
Autovista classified cars into fuel consumption groups. Of these, the highest fuel consumption group suffered the largest used car price drop.
So depreciation has worsened considerably for cars with poorer fuel efficiency.
The price level of all under six years old passenger cars dropped by 5.9% but if combined mpg was less than 30, the drop in price level was 10.0%.
For used passenger cars capable of 45-50mpg, the drop in price was only 3.9%.
The average drop in SUV prices was 11.5% compared to 4.4% for hatchbacks.
The average price drop for Jeep was 16.6%, Porsche 13% and Land Rover 11.3%. Smart fell 0.6% and Skoda 3%.
The largest drop was by Jeep Grand Cherokee (18%), followed by Jeep Cherokee (15%), Mitsubishi Shogun Sport (13.8%), Land Rover Freelander and BMW 7 Series (both 13.5%).
Higher mpg small cars held prices well.
Vauxhall Agila and Mitsubishi Colt improved compared to February, and Toyota Auris, Citroën C2, Nissan Micra, Kia Picanto, Toyota Yaris, Renault Clio, Vauxhall Corsa and Fiat Punto all dropped less than 1.5%.