GM Inside News Forum - View Single Post - Chevrolet Tahoe Hybrid, GMC Yukon Hybrid seeing lackluster sales

Michael_S · 06-03-2008, 10:45 AM

I think GM executives made a critical mistake planning these hybrids. When the price of gas passed $3.50 per gallon, resale value on fullsize SUVs and pickups dropped rapidly.

Three years ago when people were recklessly cashing out home equity to buy large SUVs and used fullsize SUVs were still costly, the Two-Mode Hybrids were a potential hit.

Today, why pay $53,000 for a 2008 Tahoe Hybrid when you can pay less than $40,000 for a fully loaded low mileage 2007 Cadillac Escalade? Even at $6 per gallon, you can burn a lot of gas in the Escalade before the Tahoe Hybrid saves you money.

chakis24,
While the Tahoe Hybrid has a much faster payback period than a Prius or Civic Hybrid versus a normal vehicle in its class, there's a crucial difference between the Tahoe Hybrid and the Prius and Civic Hybrid. The difference is $30,000 and at least fifteen real world miles per gallon. And the resale value of highly fuel efficient vehicles is up, so skipping that Prius for a used Cobalt is dramatically less financially attractive than skipping that Tahoe Hybrid for a used Yukon (or whatever).

06-03-2008, 10:45 AM	#41 (permalink)
Michael_S 6.0 Liter LS2 V8 Join Date: Jul 2004 Posts: 4,922	Re: Chevrolet Tahoe Hybrid, GMC Yukon Hybrid seeing lackluster sales I think GM executives made a critical mistake planning these hybrids. When the price of gas passed $3.50 per gallon, resale value on fullsize SUVs and pickups dropped rapidly. Three years ago when people were recklessly cashing out home equity to buy large SUVs and used fullsize SUVs were still costly, the Two-Mode Hybrids were a potential hit. Today, why pay $53,000 for a 2008 Tahoe Hybrid when you can pay less than $40,000 for a fully loaded low mileage 2007 Cadillac Escalade? Even at $6 per gallon, you can burn a lot of gas in the Escalade before the Tahoe Hybrid saves you money. chakis24, While the Tahoe Hybrid has a much faster payback period than a Prius or Civic Hybrid versus a normal vehicle in its class, there's a crucial difference between the Tahoe Hybrid and the Prius and Civic Hybrid. The difference is $30,000 and at least fifteen real world miles per gallon. And the resale value of highly fuel efficient vehicles is up, so skipping that Prius for a used Cobalt is dramatically less financially attractive than skipping that Tahoe Hybrid for a used Yukon (or whatever).