The price of gas going up will continue to put more and more people in cars, as most don't "need" the space or utility an SUV offers. I think even the CUVs are going to get caught in this mess in the not too distant future.
Dealers see SUV glut as drivers trade in gas guzzlers
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/04/25/financial/f113639D87.DTL&tsp=1
Dealers see SUV glut as drivers trade in gas guzzlers
For used car dealer Ivan Hoyos, accepting a sport utility vehicle as a trade-in is no longer good business.
The only SUV he's offering at his Florida Auto Sales and Finance is his mother's red 2004 Mitsubishi Endeavor. With only 21,000 miles on it, he's advertising the six-cylinder vehicle with the online network Craigslist for $13,991 — about $200 less than Kelley Blue Book's suggested retail value. Hoyos' mom purchased a Mazda 5, a smaller crossover vehicle with plenty of interior room but better gas economy — up to 28 miles per gallon as opposed to about 20 for the Mitsubishi.
"Nobody is buying used SUVs," said Hoyos, 35, who stopped accepting them six months ago. "The truth is more and more dealers are staying away from used SUVs and large trucks ... It doesn't pay. You can't have a unit sitting on the lot forever."
As gas prices pass $3.50 a gallon nationally and the economy teeters on recession, independent used car dealers like Hoyos and massive chains like AutoNation Inc. are having trouble selling used SUVs as buyers prefer smaller, more fuel-efficient vehicles likes hybrids and crossovers (CUVs). Crossovers such as the Ford Edge, Honda CR-V, and Toyota RAV4 have more interior room and more rugged styling that the average car, but with a lighter chassis and generally better gas economy than an SUV.
Used SUV sales in March were down 14 percent nationally compared to last year, according to data compiled by CNW Marketing Research. That follows drops in used SUV sales of more than 8 percent for the first two months of the year, compared to the same months in 2007.
That trend has sent used SUV prices plummeting, giving owners a shock when they try to trade theirs in and find out how little they can get.
"Owners find out they don't have the trade equity they thought they had and are forced to keep their vehicles or come up with a large sum of cash to make up the difference," said Chris Denove, a vice president of the auto information firm J.D. Power and Associates.
David Tivadar has spent three months trying to get fair trade-in value for his 2005 Lexus SUV, which gets about 17 miles per gallon. He would like to trade it in for a minivan that gets better mileage and can accommodate his baby daughter.
He bought the Lexus new for about $33,000, and said the monthly payments of $465 "would be more manageable if gas prices weren't so high."
More at Link
Dealers see SUV glut as drivers trade in gas guzzlers
For used car dealer Ivan Hoyos, accepting a sport utility vehicle as a trade-in is no longer good business.
The only SUV he's offering at his Florida Auto Sales and Finance is his mother's red 2004 Mitsubishi Endeavor. With only 21,000 miles on it, he's advertising the six-cylinder vehicle with the online network Craigslist for $13,991 — about $200 less than Kelley Blue Book's suggested retail value. Hoyos' mom purchased a Mazda 5, a smaller crossover vehicle with plenty of interior room but better gas economy — up to 28 miles per gallon as opposed to about 20 for the Mitsubishi.
"Nobody is buying used SUVs," said Hoyos, 35, who stopped accepting them six months ago. "The truth is more and more dealers are staying away from used SUVs and large trucks ... It doesn't pay. You can't have a unit sitting on the lot forever."
As gas prices pass $3.50 a gallon nationally and the economy teeters on recession, independent used car dealers like Hoyos and massive chains like AutoNation Inc. are having trouble selling used SUVs as buyers prefer smaller, more fuel-efficient vehicles likes hybrids and crossovers (CUVs). Crossovers such as the Ford Edge, Honda CR-V, and Toyota RAV4 have more interior room and more rugged styling that the average car, but with a lighter chassis and generally better gas economy than an SUV.
Used SUV sales in March were down 14 percent nationally compared to last year, according to data compiled by CNW Marketing Research. That follows drops in used SUV sales of more than 8 percent for the first two months of the year, compared to the same months in 2007.
That trend has sent used SUV prices plummeting, giving owners a shock when they try to trade theirs in and find out how little they can get.
"Owners find out they don't have the trade equity they thought they had and are forced to keep their vehicles or come up with a large sum of cash to make up the difference," said Chris Denove, a vice president of the auto information firm J.D. Power and Associates.
David Tivadar has spent three months trying to get fair trade-in value for his 2005 Lexus SUV, which gets about 17 miles per gallon. He would like to trade it in for a minivan that gets better mileage and can accommodate his baby daughter.
He bought the Lexus new for about $33,000, and said the monthly payments of $465 "would be more manageable if gas prices weren't so high."
More at Link
1 - 20 of 104 Posts
The market has spoken! For everyone who felt the Market and not the Government should dictate CAFE standards, the market is doing its share. As gas prices continue to rise (and people feel the pinch from inflation) more and more people will start to care about fuel consumption and the MPG they can get from their vehicle.
Poor dealers... thats what you get for hosing people over the years. I hope those SUV's and trucks never move and ro ton your lots.
I started playing with the old calculater to see if replacing my 99 Tahoe was cost effective. If I were to replace it with a car that go 40mpg I would have to finance and insure the new car for $100/month to break even. Trading in the Tahoe is not an option as due to the lowered value we are upsidedown.
Looks like I'll just buy gas.
Looks like I'll just buy gas.
Awesome!!! Hopefully this will make for some smoking deals this summer; I hope to be shopping then. I wasn't particularly interested in SUVs, but I could be persuaded if prices dip low enough.
Time to Buy!!! hey, it may be your last chance ever to have a big SUV, but 2015 they will prob. be discont.
Yay! Maybe I can pick up a nice used Escalade in a year or two! Ha! 
SUVs don't make sense for most people. Unless you're offroading or lead an active lifestyle, towing a boat, etc, you don't need an SUV. I see most SUVs being driven as family cars with a bunch of screaming kids inside. For those people, a CUV or minivan make more sense and get better gas mileage.
Or drive less.Looks like I'll just buy gas.
Lmao... that's exactly what I was thinking.Yay! Maybe I can pick up a nice used Escalade in a year or two! Ha!
They still sell really well though. So I doubt we'll be getting one.
This isn't news... it's been going on for awhile.
Gawd, I love buyin' low. Bought a mint '99 Tahoe last year for cheap.
I'd like an Enclave as much as the next guy but not when I can get a nice used Tahoe for less than $10K.
That under $10K included a set of perfect factory 20's with new tires, plus the original 16" wheels with newer tires. I don't think I'll ever need tires.
Gawd, I love buyin' low. Bought a mint '99 Tahoe last year for cheap.
A CUV the size of a used Tahoe will cost you several times as much.For those people, a CUV or minivan make more sense and get better gas mileage.
I'd like an Enclave as much as the next guy but not when I can get a nice used Tahoe for less than $10K.
That under $10K included a set of perfect factory 20's with new tires, plus the original 16" wheels with newer tires. I don't think I'll ever need tires.
I can't imagine resale value on a full size SUV. Dealers are definately going to hammer everyone who brings one in to trade.
My friend's dad is getting a car to replace his Durango in a year or so. His mom drives a 2005 Caravan and his dad drives a 2006 Durango. His company buys him a new car every 3 years or so. He wants to get a car; a 328i specifically. My friend's mom said he should get another SUV to tow the camping trailer. My friend and I were both thinking WTF?; that's what you have the van for. He does not need a truck. Save yourself the gas.
Plus, his past several vehicles have been minivans and SUVs so he wanted a change.
Lucky for him his company buys his cars so he does not have to worry about what he can get for it, as the KBB private party value is only $13800 on it.
Plus, his past several vehicles have been minivans and SUVs so he wanted a change.
Lucky for him his company buys his cars so he does not have to worry about what he can get for it, as the KBB private party value is only $13800 on it.
"...And the nominees for the "Captain Obvious" Award of 2008 is....
You think it's bad now, wait until they get the sales numbers from this month and next. They're really going to plummet!
I thought about trading in my truck for anther truck last month. My Silverado is almost 2 yrs old and has 28k on the clock. I bought it for 28k new with a 32k sticker. They wanted to give me 14k for it. I said no thanks. Looks like this truck will be my child's first vehicle.
I thought about trading in my truck for anther truck last month. My Silverado is almost 2 yrs old and has 28k on the clock. I bought it for 28k new with a 32k sticker. They wanted to give me 14k for it. I said no thanks. Looks like this truck will be my child's first vehicle.
Which is all the more reason manufacturers should bring wagons to our shores......minivans will pick up some of the slacks......but even then, I'd like to see Opel's Insignia, Holden's G8 and even Honda's Accord 'Tourer' be released.......The price of gas going up will continue to put more and more people in cars, as most don't "need" the space or utility an SUV offers. I think even the CUVs are going to get caught in this mess in the not too distant future.
My thoughts exactly.Yay! Maybe I can pick up a nice used Escalade in a year or two! Ha!
uh duh DUH.....
like another poster said, captain obvious! lol
I *REALLY* like driving the Yukon Denali, its an AMAZING machine. Definitely will have the wife drive one of those to cart the kids in (or an Escalade) in the distant future...unless she likes the Enclave better.
Of course I'm living in the present and working on getting the Cobalt SS *FIRST* lol. But its nice to think about the far off future, no?
CobaltSS
like another poster said, captain obvious! lol
I *REALLY* like driving the Yukon Denali, its an AMAZING machine. Definitely will have the wife drive one of those to cart the kids in (or an Escalade) in the distant future...unless she likes the Enclave better.
Of course I'm living in the present and working on getting the Cobalt SS *FIRST* lol. But its nice to think about the far off future, no?
CobaltSS
This is the truth. April and May are going to be disasters for SUVs and trucks ( to a lesser extent ). There might be a few pockets of 'not too bad' but overall the market has spoken and continues do do so.You think it's bad now, wait until they get the sales numbers from this month and next. They're really going to plummet!
I thought about trading in my truck for anther truck last month. My Silverado is almost 2 yrs old and has 28k on the clock. I bought it for 28k new with a 32k sticker. They wanted to give me 14k for it. I said no thanks. Looks like this truck will be my child's first vehicle.
1 - 20 of 104 Posts
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