Car buyers are looking at big cars again. Used small cars are taking the biggest hits on value in the resale market.
"It's part of a larger trend that's been happening all year," says Alec Gutierrez, a senior market analyst for KBB. "Some of the weakest segments are subcompact, compact and hybrids."
The trend reflects the fact that gas prices seem relatively low and stable. A gallon of regular went for $2.55 on average nationally Thursday, that's down 8 cents from $2.63 a month ago and $3.86 a year ago. So we aren't worried about MPG at the moment. It also suggests that Americans may not be ready to embrace smaller new vehicles the federal government is mandating, especially if they cost more.
On Tuesday, the administration proposed an industry average for new vehicles equivalent to 35.5 miles per gallon by 2016. That would mean more smaller vehicles with more costly technology. They may want to rethink that.
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