IRVINE, Calif. -

In what goes against recent months, May showed weaker interest for used hybrids in light of more moderate fuel costs, while some used luxury segments have started to attract more attention from shoppers, according to Kelley Blue Book.

The company suggests that dealers would be wise to push their luxury units in coming months in light of burgeoning interest around these vehicles.

In fact, luxury SUVs were up 7.7 percent in used-car shopping activity from April, leading all segments in terms of monthly growth. Luxury crossovers were second on the list (up 3 percent) and luxury cars were third (up 1.8 percent).

“As gas prices start to decline, used intenders are now re-considering luxury vehicles,” Arthur Henry, KBB’s market intelligence manager and market analyst, said in the Hot Car Report. “Dealers should look forward to off-loading their luxury inventory in the next couple of months as interest in these vehicles continue to rise.”

Conversely, three hybrid segments were among the bottom five overall for activity growth. Hybrid SUV activity was down 5.3 percent, hybrid car interest dropped 3 percent and interest in hybrid crossovers fell 2.9 percent.

“Used-car shopper interest in hybrid vehicles declined in May, as a result of stabilizing gas prices and low used-car volumes,” Henry suggested.

Breaking it down by individual models, the 2009 Volkswagen Tiguan showed the most month-over-month growth in May (up 39.9 percent), followed by the 2009 Chevrolet Silverado 2500 HD Crew Cab (up 33.7 percent) and the 2008 Land Rover Range Rover Sport (up 32.8 percent).

Meanwhile, the 2006 Dodge Ram 2500 Mega Cab showed the most dramatic decline (down 24.1 percent), with the 2008 Nissan Xterra (down 23.6 percent) experiencing the second-highest drop. Behind the Xterra was the 2009 Chevrolet Equinox (down 21.6 percent).

Used-Vehicle Values

Looking at used-vehicle values, the more fuel-efficient segments are poised for a slowdown, according to KBB’s manager of vehicle valuation Alec Gutierrez, but they managed to stay above the curve in May.

Subcompact car values were up 1.2 percent in May, with compact cars up 1.4 percent and hybrid cars up 1.7 percent. Meanwhile, used values in the overall industry dipped 0.6 percent. The last time that overall used values were down was January, KBB noted.

Despite being above the industry average, KBB doesn’t believe this value surge will last for these fuel-efficient segments.

“In some cases, values for fuel-efficient one- and two-year-old vehicles have jumped more than 30 percent and are even approaching original MSRP,” Gutierrez said. “Kelley Blue Book analysts believe that values for fuel-efficient vehicles are not sustainable at current levels, and we believe values will decline as we head into summer.”

He added: "Although values increased slightly in May (for fuel-efficient vehicles), the rate of appreciation has been on the decline since March. In fact, during the past several weeks Kelley Blue Book analysts have seen values decline across all segments, even among fuel-efficient segments which had increased for 20 consecutive weeks."

How much will fuel-efficient segments fall? KBB expects the values of these fuel-friendly unites to dip between 3 percent and 5 percent more during the summer, Gutierrez shared. He stressed that number could be ramped up if the wane in gas prices persists.

Average fuel costs in the U.S. hit an apex at $3.98 last month, and this surge in fuel costs was the main culprit for robust used market. As it stands, fuel costs have waned and now stand at $3.78, Gutierrez pointed out.

“It should be noted that we do not expect values for these vehicles to repeat the 25-30 percent declines witnessed in 2008, unless gas prices fall significantly,” Gutierrez emphasized. “Regardless of where values end up, these vehicles will remain a smart purchase for budget-conscious consumers.

“With that said, our advice to dealers and consumers alike is to purchase with caution today, since values are likely to continue to fall through the early part of summer,” he added.

Residuals Are Static

Moving along, KBB also offered some insight into residual value trends. KBB’s director of residual value consulting Eric Ibara pointed out that average 36-month residual values were up just 0.5 percent year-over-year in May, which is essentially a “flat” comparison.

That said, cars and trucks told totally different stories, Ibara noted. He said that “the difference in all car and truck segments in dramatically different.”

There was a year-over-year decrease in the residual values for each of the respective car segments. However, on the truck side of the market, there was only one segment whose residual values did not increase from the year-ago period.

On average, the car segments dipped 1.7 percentage points, Ibara said. Conversely, trucks climbed 2.3 percentage points, on average.

Breaking it down, hybrid/alternative energy cars showed the most dramatic decline (down 4.1 percentage points) followed by near-luxury cars (down 4 percentage points).

Pushing the hybrid/alternative energy car segment down were the Toyota Prius, Honda Insight and Volkswagen Golf TDI. Likewise, the BMW 1 Series and Volvo C70 were major decliners on the near-luxury side.

Meanwhile, full-size pickups showed the greatest uptick in residuals (up 4.1 percentage points) and midsize pickups were next (up 3.7 percentage points), according to Ibara. Comprising most of the gains for full-size pickups were heavy-duty models (Ram Heavy Duty, GMC Sierra/Chevrolet Silverado, Ford F-Series Super Duty) and the Nissan Titan.

The Chevrolet Colorado/GMC Canyon and Suzuki Equator provided a lift to the midsize truck segment, Ibara noted.