There has been a lot of talk lately about smaller, more efficient cars being the new face of America’s roads.  Yet despite the discussion, lower gas prices are causing used car buyers to revert to bigger vehicles.

Small used cars are taking a hit on value in the market, according to Kelley Blue Book.  Even the once hot-ticked Smart ForTwo is suffering, according to the auto pricing publication.

“Its 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.”

This trend reflects a couple of important things to consider about the current market: first, it shows that gas prices have been remaining at what consumers view as a reasonable level for a prolonged period of time.  But more importantly, it shows that consumers are not thinking long-term when it comes to their vehicle purchases.  The federal government is mandating smaller, more efficient cars, but for now consumers are staying away from them due to higher costs.

Lower demand for SUVs during 2008’s price spike led to lower prices which are now very enticing to buyers. “We do see big stuff moving,” says Steve Bussjaeger, owner of the Star SuperCenter used car lot in Glendale, Calif. “They got cheap… People are more price conscious than gas (price) conscious.”

To those looking for a compact car, the near future will hold some deals, as demand for larger vehicles is having the inverse effect on small cars.  Value is down 15% since 2008 on small autos.

“The entire industry has suffered this year. … The small-car segment has been affected by this as well,” says Smart USA spokesman Ken Kettenbeil. “However, we know that in time both situations will change. For this, and many other reasons, the trend will transition toward smaller vehicles.”

Photo courtesy of wili hybrid under the Creative Commons License.

The harsh economic climate has hit the auto industry hard with sales drastically down, and it seems that consumers aren’t helping.

A recent study conducted by AutoPacific found that 72 percent of the general public plans not to buy a new car in the next year, and 59 percent of new car buyers intended to keep their car for at least four years.  Last year, that number was 45 percent.

So what does this mean for the commercial fleet?  A fleet owner may want to jump at the chance to haggle with desperate automotive sellers for a good price on new fleet vehicles.  But unless keeping up with new vehicle trends is of great importance to your fleet, the most affordable way to keep your fleet in top condition is to follow a strict maintenance routine.  Regular maintenance can double the useful life of your vehicles and keep them from suffering costly breakdowns and spending time in repair shops.  Even something as simple as making sure tire pressure or oil and coolant levels are correct can extend the life of your vehicles.  The less money you spend replacing your fleet vehicles prematurely, the more money you will have to invest in your business.

With credit becoming harder to come by every day, weathering the economic storm with your current vehicles is a smart choice.  However, if you do wish to replace some of your fleet, you can make it more economically viable by investing in more fuel efficient cars: lighter models, vehicles with smaller engine sizes, and hybrids. This will save you money over time in fuel costs and even help the environment!

Whether you decide to keep your current vehicles or replace them, remember that the most important thing is for your fleet to remain efficient and on the road, doing their job and making you money.  For more information on keeping your fleet as efficient as possible, check out FleetCards USA’s tips for improving fuel efficiency.

Photo courtesy of Beth and Christian under the Creative Commons License

The marketplace for the next generation of fleet vans is about to get pretty crowded. As you may have seen in one of our recent postings, upstart automaker Bright Automotive introduced the IDEA, an all-electric delivery van that promises to get the equivalent of 100 mpg on 50-mile trips.

This announcement came on the heels of Ford’s announcement back in February, that the auto giant would be producing an Electric-Powered Commercial Van of their own.

The pure battery electric-powered light commercial vehicle referred to as the Transit Connect light commercial vehicle with battery electric power is Ford’s response to a growing number of commercial vehicle fleet clients who are turning to efficient and cleaner alternatives as they renew their vehicles.

While Bright Automotive’s IDEA won’t be available until 2013, the Transit Connect with battery electric power is the first of Ford’s new electric vehicle plan to bring battery-powered vehicles, hybrids and plug-in hybrids to market.

Ford is working with Smith Electric Vehicles, a company based in the U.K. that has been converting vehicles to battery electric power since 1920 and the Transit Connect is already available in Europe.

As a fleet manager, reduced operation and maintenance costs over the long haul may just be part of the value of making the shift to an electric powered vehicle as the government is introducing federal and regional programs that offer incentives for companies to electrify their fleets.

We want to know what your plans are. Do you think your next fleet upgrade will go electric?

Check out the complete article on Ford’s new Transit Connect here.