Resale Value of Smaller Vehicles Goes Up with Gas Prices

Gas Price Effect on Resale Value – Courtesy of and Copyright ALG all rights reserved

Ken Zino of AutoInformed.com on the effect of gas prices on resale value of different sizes of vehicle

Entry Compacts and Mid Compacts have the largest positive impact on 36-month resale/residual values when gas prices increase.

The consultancy ALG has modeled the effect of a 1$ per gallon change in regular gas price on 36-month resale values or residual lease values. To no one’s surprise, lest of all ALG, which is expert in the area, so called Entry Compacts and Mid Compacts receive the largest positive impact on 36-month resale/residual values when gas prices increase. When the price of regular gas increases by $1 per gallon as it has, Entry Compacts and Mid Compacts experience an increase in used values of 10% and 9%, respectively.

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