The pre-owned vehicle retailer CarMax Inc. had a plunge of 55% in fiscal-first quarter net income.  This announcement weighed heavily on carmakers because it created additional concerns about the rapidly shifting trends of consumers.

The pre-owned retailer, of Richmond, VA claims that there was a 25% decline for SUVs and trucks for the quarter ending late in May, which was way above what the depreciation was expected to be for the whole year.  This is due to motorists’ reactions to the weak economy and high gas prices.

CarMax shares saw a decline of 11% at the 4 p.m. N.Y. Stock Exchange composite trading.  In addition, GM shares dropped 5.9%, and Ford shares declined 5.8%

According to the Chief Executive of CarMax, this depreciation has lasted longer than any other segment that they have seen, and prices are sure to continue falling.

Large vehicles have been U.S. carmakers’ main sales source in the past, yet now they have to scale back on production in these segments and introduce more fuel-efficient cars.

Consumers are being hit hard by the economy and high gas prices; therefore, they are looking for small, fuel-efficient cars.  Some motorists, however, are deciding to hold on to their current vehicles and purchasing used car warranties so that they don’t have to buy a car for a while.