FALLING PRICES: Prices for new and used small cars will fall later this year. Auto pricing service Kelley Blue Book expects the average new compact car to fall from a record $20,500 in June to about $19,300 by the end of the year.
THE REASONS: Some car buyers are shifting to larger vehicles as gas prices fall from their May peak. Honda and Toyota are shipping more cars to dealers because their plants are ramping up following a March earthquake and tsunami in Japan. More cars in stock could mean discounts for buyers.