AutoTrader.com Has Yet to See Big Shift in Spending Patterns Due to Gas Prices

AutoTrader.com analysts sought to answer a question that inventory managers probably are considering. Where is the tipping point in gas prices where consumers shift their interest to more fuel-efficient vehicles?

According to the February Trend Engine Report, AutoTrader.com discovered consumers haven’t reached that tipping point yet, but they may be close based on information gleaned from the site at the tail end of February. Analysts learned trucks and SUVs continued to hold the majority of shoppers’ interest across new, used, and certified pre-owned vehicles during the past month. 

AutoTrader.com found the number of family cars and sedans on the list of most-searched new vehicles has actually decreased. In January, the site noted these units captured nine out of 20 spots on the list with only four out of 20 in February.

Three of the four family cars are newcomers to the list this month, and all get more than 25 mpg combined. AutoTrader.com thinks this trend could indicate a slight leaning toward fuel-efficient models.

Additionally as previously reported by Auto Remarketing in this story, a recent survey of AutoTrader.com users showed 53 percent of site shoppers would consider a vehicle with more fuel economy than the one they currently drive.

So analysts contend more activity in fuel-efficient vehicle shopping may show itself on AutoTrader.com in March or April if gas prices continue to rise.

“We’re starting to see a little bit of movement on the list of most-searched new cars toward fuel efficiency, but not really enough to say that gas prices had a dramatic effect on consumer shopping behavior in February,” explained AutoTrader.com president and chief executive officer Chip Perry.

“In fact, the addition of some heavy-duty trucks shows that consumers have a higher-than-expected threshold for gas prices and are still following their hearts with the love of larger vehicles,” Perry continued.

“Similarly, the lists of most-searched used and CPO cars haven’t actually changed much in the last few months,” he went on to say. “If gas prices continue to rise, we’ll be on the lookout for new trends, and as our survey during February showed, many consumers are now starting to think about more fuel-efficient vehicles.”

Most Searched CPO & Used Models Remains Stable as New Units Vary

As Perry touched on, the most-searched for pre-owned vehicles didn’t change much between January and February despite the rising gas prices.

AutoTrader.com indicated trucks and SUVs still make up 11 out of the top 20 spots on both the most-searched used vehicle list and the most-searched CPO unit list. The only difference noted between the lists month-over-month is that the most-searched used vehicle list in January had 12 trucks and SUVS, but the used Toyota Tacoma was edged out by the used Volkswagen Jetta in February. 

Sliding over to a new-vehicle discussion, the site found the total number of trucks and SUVs that made the list of the most-searched new units actually increased month-over-month, going from nine out of 20 in January to 11 out of 20 in February.

AutoTrader.com indicated the new Ford F-150 held on to its No. 1 position month-over-month and year-over-year. Officials said three heavy-duty trucks made big leaps into the top 20 from the month prior, with the new Ford F-250 climbing nine places to land at No. 12 in February; the new Dodge Ram 2500 moving up 13 places to No. 17; and the new Chevrolet Silverado jumping eight places to settle at No. 19. 

Even with all the movement regarding trucks and SUVs, AutoTrader.com noticed there were four fuel-efficient newcomers to the list of most-searched new vehicles in February with three family cars and one fuel-efficient SUV.

The new Chevrolet Cruze jumped 25 places, going from No. 39 in January to No. 14 in February; the new Kia Optima leapt 42 places, going from No. 58 in January to No. 16 in February; and the new Hyundai Elantra moved up 29 spots, going from No. 47 in January to No. 18 in February.

Although classified as an SUV, analysts pointed out the fuel-efficient new Chevrolet Equinox zoomed up 19 spots, going from No. 34 in January to No. 15 in February.

Average Asking Prices Rise Across All Segments

AutoTrader.com determined year-over-year average asking prices increased on the majority of new, used and CPO vehicles in February. 

For the most-searched new vehicles, prices were up on 13 out of 19; however no pricing information was available for one model that was introduced after February of last year. For the most-searched used vehicles, prices were up on 16 out of 20. And for the most-searched CPO vehicles, prices were up on 12 out of 20. 

Analysts contend the average asking prices for CPO vehicles rebounded after a rough start to the year in January, which was when the majority of asking prices dropped.

As stated earlier, 12 out of 20 CPO vehicles on the most-searched list in February saw increases in their average asking prices. Interestingly, AutoTrader.com indicated 10 of these vehicles had a price increase greater than 4 percent with trucks and SUVs comprising eight of the 10 major increases.

Notable CPO standouts with year-over-year price increases include:

—Toyota Highlander: a price increase of 7.1 percent from $24,545 to $26,286.

—Toyota Tundra: a price increase of 7.1 percent from $24,814 to $26,579.

—Toyota 4-Runner: a price increase of 8.1 percent from $24,341 to $26,302.

—Ford F-150: a price increase of 8.9 percent from $23,604 to $25,712.

Meanwhile, AutoTrader.com determined used average asking prices were a little more modest, with only four vehicles having a price increase above 4 percent.

Of these four, analysts said two were heavy-duty trucks — the price of the used Chevrolet Silverado 2500 climbed 4 percent from $22,777 to $23,688 and the price of the used Ford F-250 ticked up 5 percent from $23,283 to $24,454. The remaining two movements were the price of the used Jeep Wrangler increasing 4.96 percent from $19,169 to $20,119 and the price of the used Nissan Altima climbing 4.1 percent from $14,443 to $15,032.

On the new-vehicle side, the site highlighted eight vehicles had an average asking price increase of more than 4 percent with the Kia Optima grabbing the biggest rise at 14.6 percent moving from $19,930 to $22,833.

Even with gas prices being discussed so much, AutoTrader.com learned five of the eight vehicles with year-over-year average asking price increases of more than 4 percent were either trucks or SUVs. That group included:

—Jeep Grand Cherokee: increase of 4.2 percent from $36,412 to $37,924.

—Ford F-150: increase of 4.6 percent from $36,323 to $38,101.

—Chevrolet Silverado 2500: increase of 5.4 percent from $41,962 to $44,240.

—Ford Explorer: increase of 8.9 percent from $35,597 to $38,747.

—Ford F-250: increase of 9.2 percent from $44,550 to $48,657.

“We look at average asking prices because they, too, have a story to tell about auto shopping behavior,” Perry declared.

“Consumer confidence is on the rise and more people are looking to purchase their next car,” he explained. “Since inventory levels haven’t fully recovered, we’re seeing mostly steady — but sometimes dramatic — uptick in prices for many vehicles. By looking at the types of vehicles that are seeing the biggest increases in asking prices, we can see that the numbers from February once again confirm Americans’ interest in larger vehicles.”

Ford Remains Most-Searched Brand on AutoTrader.com

Analysts indicated Ford again achieved the honor of being the No. 1 most-searched brand the site for both new and used vehicles with Chevrolet holding on to the No. 2 spot.

While Ford attracted the most searches overall, AutoTrader.com pointed out Chevrolet did see five new vehicles in the top 20 in February that were not on the list in January. The site thinks this trend could certainly be a reflection of the sales month Chevrolet experienced in February.

“Although AutoTrader.com doesn’t get involved in the actual transaction, there’s definitely a correlation between searches on our site and sales on the showroom floors,” Perry emphasized.

“Study after study has confirmed that the Internet is the most-used research tool for auto shoppers, and those shoppers devote the majority of their online research time looking at and comparing cars on third-party sites like AutoTrader.com,” he continued.

FEBRUARY TOP 10 NEW VEHICLE BRANDS SEARCHED

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FEBRUARY TOP 10 USED VEHICLE BRANDS SEARCHED

FEBRUARY TOP 20 MOST-SEARCHED NEW VEHICLES

FEBRUARY TOP 20 MOST-SEARCHED USED VEHICLES

FEBRUARY TOP 20 MOST-SEARCHED CERTIFIED PRE-OWNED VEHICLES