Kelley Blue Book: Hold Off On That Hybrid

  • March 21, 2011
Kelley Blue Book says consumers should hold off buying a new vehicle until gas prices come down, should that actually happen. The firm says prices of fuel-efficient vehicles are going to spike because of demand. "Since the beginning of the year, fuel prices have spiked 15.3%, primarily due to instability in the Middle East that has sparked fears of production halts," the firm says.

When gas prices spiked in 2008 to $4 per gallon, consumers ditched their trucks and SUVs in a panic -- taking a loss, just like people selling stocks at the bottom of the market. They then spent premium cash on new or used fuel-efficient cars. "Gas prices are expected to eventually drop; however, in the short term, consumers should prepare to continue to pay a premium at the pump at least through 2011. Gas prices will remain high until the situation in the Middle East is resolved, but consumers should only sell their current vehicle if their budget forces them to do so," says the firm.

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