A Return to 2008?

[George Nenni]

⛽️ ⬆️ With fuel prices spiking, and no near-term anticipated drop, will we see a return to 2008, with low-MPG vehicle pricing dropping, as consumers flock to more fuel-efficient models?

Attached is a screenshot of a Google Trends report I ran this morning. With fuel prices at near record highs, this increase in searches for "miles per gallon" is no surprise.

It was amazing to me then, watching how elastic demand was for fuel-efficient vehicles, when gas prices jumped.

And these consumers were just as ready to jump back into less fuel-efficient trucks and SUVs, as prices fell.

Will this same pattern repeat?

The questions are:

1️⃣ What is your current used inventory mix in relation to fuel efficiency?

2️⃣ Are you seeing used prices fall faster for less fuel-efficient vehicles?

3️⃣ Are you seeing used prices hold or climb for more fuel-efficient vehicles?

We're hearing of some of these trends, but not yet a groundswell movement, please share share you're seeing.

 

[Ryan Everson]

⛽️ ⬆️ With fuel prices spiking, and no near-term anticipated drop, will we see a return to 2008, with low-MPG vehicle pricing dropping, as consumers flock to more fuel-efficient models?

Attached is a screenshot of a Google Trends report I ran this morning. With fuel prices at near record highs, this increase in searches for "miles per gallon" is no surprise.

It was amazing to me then, watching how elastic demand was for fuel-efficient vehicles, when gas prices jumped.

And these consumers were just as ready to jump back into less fuel-efficient trucks and SUVs, as prices fell.

Will this same pattern repeat?

The questions are:

1️⃣ What is your current used inventory mix in relation to fuel efficiency?

2️⃣ Are you seeing used prices fall faster for less fuel-efficient vehicles?

3️⃣ Are you seeing used prices hold or climb for more fuel-efficient vehicles?

We're hearing of some of these trends, but not yet a groundswell movement, please share share you're seeing.

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We haven't seen much of an uptick, I think SUV's are a lot more fuel-efficient now than they were back in 2008, so that tapers a lot of the desire to rush into a more fuel-efficient car.

Not to mention there aren't very many sedan models left on the market to even choose from.

And when you look at hybrid and electric models they come at a large premium that would negate any gas savings.

 

[Alex Snyder]

It is still early, but I am a subscriber in "history doesn't repeat; it rhymes."

I think there are more rhymes with the 1970s right now. Obviously, we can't track Google results to then though.

 

[Rob]

We're seeing truck & large SUV demand as strong as ever. I don't pretend to understand it.

 

[Todd Caputo]

My opinion. Older and high mileage trucks and Large SUV’s (trades) will see depreciation accelerate in these conditions. Low mileage ones won’t because of low supply and they are more fuel efficient.

 

[ryan.leslie]

Generally, I agree with @Todd Caputo, and this might be the exception that proves the rule.

https://bringatrailer.com/listing/2000-ford-excursion-28/

TL;DR: This 2000 7.3 liter Ford Excursion with 101k miles brought a cool $67,000 on Bring a Trailer last week.