Gas prices may be on the rise, but apparently that’s not going to make an impact on used car sales according to predictions by the National Automobiles Dealers Association (NADA).
The expectation is that the average gas price will peak at $4 a gallon this May. Normally, when gas prices are high, the average consumer didn’t like getting a car loan to buy a used car. This year, however, seem to be an exception of the rule.
Jonathan Banks, an analyst with NADA Used Car Guide, says that the rise in gas prices won’t make that big of an impact in their decision. “Considering consumers have become accustomed to gasoline prices that averaged more than $3.50 last year, this time around we don’t expect to see dramatic shifts in the shopping behavior of consumers for more fuel-efficient vehicles when prices approach the $4 mark.”
He continued on to say that compact cars will be seeing a raise in demand while the SUV, notorious for gas-guzzling, will see a drop. This is highlighted by the sales in February which were at a four-year high. Compact vehicles especially are seeing a boost by 16 percent.
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