COSTA MESA, Calif. -

In light of the aftermath of the disaster in Japan as well as skyrocketing gas prices, there has been a steeper-than-projected spike in used-vehicle prices on both the retail and wholesale fronts, according to NADAguides. The company suggests these increases will likely stick around for the next three months or longer.

“With a tight supply of used vehicles and rising fuel prices, we really are in a seller’s market. The good news for buyers is that in a way, this levels the playing field — given low interest rates and incentives, new vehicles may offer more budget-savvy options,” shared Troy Snyder, director of product development at NADAguides.

“The best bet for consumers is to do research and find a vehicle that fits their lifestyle and budget,” Snyder added.

Specifically, overall prices have jumped 5 percent since the Japanese disaster, which is a heftier increase than seasonally expected, NADAguides indicated.

Among various segments, intermediate compact prices have climbed 11 percent and intermediate midsize cars have seen their values climb 8.5 percent.
NADAguides points out that there has been a consistent dip in used supply for the past two years, but projected that the price hike will continue to create concern with regard to supply and demand for fuel-efficient compact and subcompact units.

“In response to this movement, vehicle values will also increase drastically relative to early March,” officials predicted.

Moving on, NADAguides delved into more detail regarding the effects of the Japanese disaster. On a long-term basis, it is “unclear” what the ultimate impact will be, analysts suggested.

But NADAguides stressed that, “The price increases the market is currently experiencing will indeed hold consistent for at least the next three months … With the aftermath of the earthquake, come projected shortages of parts, as well as a shortage of some vehicles, due to unavailable supply and production issues.”

As far as the impact of fuel prices, analysts believe that consumers understand the gas-price scenario this year better than they did three years ago. As such, their behavioral changes aren’t likely to be as drastic.

Fuel economy won’t be the sole base for their purchasing decisions, NADAguides suggested. Consumers are likely to “consider all their long-term needs in addition to miles per gallon.”