In a recent Kelley Blue Book survey, 81 percent of car shoppers say rising gas prices have influenced their vehicle purchase considerations, with most looking at downgrades in engine and vehicle size, fewer options and switching from new to pre-owned automobiles. NADA Used Car Guide supports that data, stating that both values and demand for hybrid and compact cars usually increase in response to gas hikes.

As a result, more auto dealers are shopping California, Arizona and Nevada online auctions and leveraging cost-efficient auto transport by rail to get the late model, in-demand inventory their customers want.

Rising Fuel Prices

As U.S. consumers have experienced over the past few years, gas prices can fluctuate rapidly depending on developments in the United States and across the world. Changes in supply and demand, international unrest, fluctuation in the U.S. dollar, and extreme weather are all factors that can shift fuel prices up and down.

Shift to Smaller Vehicles Already Underway

Taking into account the recent hike in gas prices, the shift to smaller, more fuel-efficient vehicles has been dramatic. First quarter 2011 small car sales (Jan. - March) are up almost 24 percent over the same time last year. Mid-size sales are up over 17 percent versus the same three months of 2010. Two disparate buyer groups are fueling the shift: baby boomers and the millennials (aka Gen-Y).

Aging baby boomers, who currently account for 46 percent of all vehicle purchases, continue to downsize their vehicles. Young urban millennial’s in their teens to early 20’s are purchasing smaller new or used vehicles that they can both accommodate and afford.

California, Arizona and Nevada Auto Auctions

To meet growing consumer demand for smaller, more fuel-efficient vehicles, savvy used car dealers have taken to the Internet to purchase the quality, pre-owned inventory they need from auto auctions thousands of miles outside their normal trading area. California, Arizona and Nevada auctions have become especially attractive to Midwest and Texas dealers looking for fuel-efficient 2008 model year vehicles, as well as hybrid small cars and SUVs entering the used car market for the first time.

Access to Late-Model Fuel Economy Leaders

Four-cylinder models of the Ford Focus, Chevrolet Aveo, Chevrolet Cobalt and Dodge Caliber are several small, fuel-efficient vehicles that rank high on today’s consumers’ shopping lists. Online auctions provide used car dealers with more access to fuel economy leaders such as hybrid versions of the Honda Civic and Nissan Altima; the Ford Escape Hybrid in the small SUV category; and the Chevrolet Malibu Hybrid in the family sedan category.

Cost-Efficient Auto Transport by Rail

In addition to being the most environmentally-friendly mode of transportation, rail is four times more fuel-efficient than over-the-road trucks. Therefore, auto transport by rail for long-distance used car trading makes sense.

Depending on the vehicle model, automotive railcars carry up to 50 percent more cars than a car hauler truck, leading to more efficient shipping combined with reduced auto transport rates. For long distance shipments over 500 miles, multimodal options which include auto transport by rail can offer savings in freight charges of up to 30% compared to direct truck.

Auto Transport Companies Protect Car Dealer Profits

By offering both cost-efficient long-distance rail service as well as truck transport options, auto transport companies can quickly and economically ship vehicles from wherever dealers purchase them. Additionally, many auto transporters now provide easy to use Internet services such as online price estimates, ordering and vehicle tracking.

With rising fuel prices, dealers are using online auto auctions to find the smaller, fuel efficient cars that customers are buying. With the option to use cost-efficient rail auto transport, rising gas prices won’t limit a dealer’s profitability or capacity to maintain the optimal inventory to meet their customers’ needs.

About ShipCarsNow

ShipCarsNow provides the used car industry with affordable multimodal auto shipping services. Established by Union Pacific in 2006, ShipCarsNow delivers vehicles in the U.S. and around the world through a multimodal auto transport network that includes truck, enclosed rail transport, driveaway shuttles, and ocean-going vessels. The company brings global resources and technology to dealers and auto remarketers as a natural extension of Union Pacific’s automotive logistics and transportation operations for new car distribution. ShipCarsNow.com provides used car shippers with a fast and easy way to book affordable auto transport online. For more information, visit http://www.ShipCarsNow.com or call ShipCarsNow Toll Free (866) 207-3360. Follow ShipCarsNow on Facebook and Twitter.