Big Trouble for Big SUV's

[markusername]

DETROIT -- Last July, Chevrolet dealer Tim Walters took a 2003 Ford Expedition in trade. He's still waiting for a buyer.

The big SUV had 34,000 miles on it, and Walters took it to auction three times. It attracted no bids, says Walters, whose dealership is in Elkland, Pa. "A lot of guys are afraid to take a chance on" buying large SUVs, he says. "You don't know if another hurricane will hit and gas will hit $4 a gallon."

The Expedition Walters can't sell is a sign that high gasoline prices are scaring away buyers of large SUVs. But used small cars, in a stunning reversal, are holding value. A 2003 Toyota Corolla LE is selling for $100 more this month than it did last October, according to auction data, even though the economy car is a year older, with more mileage and wear and tear.

http://www.autoweek.com/news.cms?newsId=103329

[CRBoyd91]

Maybe the Fuel Economy of the GMT-90o's will pull buyers back to them. I will still assure you, that in wealthy areas, there is still plenty of demand for them, though, because it is mostly the people that couldn't aford them in the first place that are getting rid of them.

[GMFreak8]

I want to trade my 2004 2500 Suburban in for a new Tahoe, I hope I can still get a decent trade in on it.

[yoblues]

At least 50 percent, maybe more, of SUV's buyers were fad shoppers. The 900 series will not make any difference. The MPG gain is not significant enough. The SUV fad is over.

[CRBoyd91]

Around here, people are more likely to buy a Suburban than a minivan, because they don't want to look fruity, and they can afford it.

[SilverZ]

Blah Blah... yes, it looks like SUV's have taken a hit, THIS YEAR... but a longterm trend has not been set. The media hates GM.

[KingElvis]

They hate GM...even though the SUV in question is a Ford...

If they get 17/23mpg that's still pretty good. They should make them all hybrid drive, so that way, the hybrid drive expense goes way down due to the massive increase in economy of scale. If you make a million of them rather than 30,000, that's going to plunge costs dramatically. Plus, on a $40K vehicle, an extra $2000 built into the base price is not going to make much difference, and then you could argue that the re-sale will withstand gas price shocks better than non hybrid SUVS.

[darndot]

A lot of the SUV cut is due to the 4 door pickups. Look at the Avalanche, f150 crew, and etc. A lot of families are switching to a manly truck. That is before Rita came to shore.

[asim]

Blown way out of proportion, but a truely sad story.

[jokuvaan]

Falling SUV sales is never sad story.

[Mr. Burns]

Originally Posted by KingElvis

They hate GM...even though the SUV in question is a Ford...

If they get 17/23mpg that's still pretty good. They should make them all hybrid drive, so that way, the hybrid drive expense goes way down due to the massive increase in economy of scale. If you make a million of them rather than 30,000, that's going to plunge costs dramatically. Plus, on a $40K vehicle, an extra $2000 built into the base price is not going to make much difference, and then you could argue that the re-sale will withstand gas price shocks better than non hybrid SUVS.

i cant believe that every anti Gm article you guys read you think that the organization is against GM. SUVs are dying, and the truth is no one builds more of them then ford or GM and noones SUVs are more popular then fords or GMs and so this is mainly a GM/Ford problem. not because the article hates GM, for if i were to believe everytime you guys say that the mag. or organization is against GM, there would not be a single automotive journalistic organization that likes GM. personally (with the exeption of hondaanddriver) there is no single organization, not edmunds, not CR, not motortrend not carconnection not msn not no one that has it out for GM, they are all unbiased in my opinion. After all, as some people have mentioned, when an american corporation was to go bankrupt then why would we all cheer and assist its demise? especially those of us who depend on the automotive world to make a living, hence edmunds and CR employees.

drop the GM koolaid.

[GMFreak8]

SUVs are not dying, period, there will always be a market for them. The only people being affected by gas prices and their SUVs are the people who couldn't afford them and never should have purchased one in the first place.

[GMFreak8]

Oh and Mr. Burns, please go hug a **************** tree and buy a toyota, it'll benefit all of us.

[zeobandit]

What that article isn't saying, is what is the price of the Expedition? He is probably trying to sell it at a rediculously high price, instead of fair market value.

[SilverZ]

Originally Posted by Mr. Burns

drop the GM koolaid.

Lets take a look at the graph I attached. Please explain how SUV's are dying? A slight decrease in sales during a year of car investments and higher gas prices. If this is not a fact, then we do need to question the media who is claiming this, when GM is one of the largest producers.