Kelley Blue Book Analysts Recommend Consumers Wait to Replace Current Vehicle Until Gas Prices Drop

IRVINE, Calif., March 21, 2011 /PRNewswire/ -- Kelley Blue Book www.kbb.com, the leading provider of new car and used car information, today recommends that consumers who do not have a pressing need to replace their current vehicle wait for gas prices to come back down.  Since the beginning of the year, fuel prices have spiked 15.3 percent, primarily due to instability in the Middle East that has sparked fears of production halts.  With gas prices on the rise, Kelley Blue Book anticipates that fuel-efficient vehicle values will increase, while values for trucks and SUVs are expected to stabilize.  

In 2008, gas prices hit $4.00 per gallon and many consumers reacted by selling their trucks and SUVs in a panic and taking a significant loss, only to spend a premium for a new or used fuel-efficient car.  After it became apparent that this appreciation was largely driven by speculation rather than market fundamentals, gas prices came down sharply and values eventually leveled off.  With this in mind, consumers should be cautious as they decide whether or not to sell their vehicle for something more fuel efficient.  

Gas prices are expected to eventually drop; however, in the short term, consumers should prepare to continue to pay a premium at the pump at least through 2011.  Gas prices will remain high until the situation in the Middle East is resolved, but consumers should only sell their current vehicle if their budget forces them to do so.  

In the event that drivers need to switch to a more fuel-efficient vehicle, Kelley Blue Book analysts have provided a list of 30 new vehicles offering roughly 30 miles per gallon or greater.  

"For those in the market to switch to a more fuel-efficient car, we suggest looking at subcompact vehicles to get the most bang for your buck," said Alec Gutierrez, manager of vehicle valuation for Kelley Blue Book.  "While they are not necessarily the most amenity-laden cars on the market, the Nissan Versa, Toyota Yaris and Ford Fiesta offer competitive fuel economy in an affordable package."  

Hybrid and electric vehicles may offer the best raw fuel-economy figures, but based on their high upfront cost, they become more expensive in the long run.  For example, a new Toyota Prius will cost a consumer more than $32,000 during five years of ownership, based on fuel and financing costs.  Conversely, a gasoline-powered highly fuel-efficient vehicle like the 2011 Hyundai Elantra will only cost $28,000 during the same period.  

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About Kelley Blue Book (www.kbb.com)

Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the industry.  Each week the company provides the most market-reflective values in the industry on its top-rated website www.kbb.com, including its famous Blue Book® Trade-In and Retail Values, and Fair Purchase Price, which reports what others are paying for new cars this week.  The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, as well as governmental agencies.  Kbb.com is a leading provider of new car prices, used car values, car reviews, new cars for sale, used cars for sale and car dealer locations. Kelley Blue Book Co., Inc., is a wholly owned subsidiary of AutoTrader.com.

SOURCE Kelley Blue Book