Trade-in Value of SUVs is Crashing

Posted: Apr. 28, 2008 10:04 a.m.

Last week, we told you that a glut of SUVs on used car lots had led to low prices, making this a great time to buy a recent used sport utility or truck, if you have the need. Throughout the weekend, media reports have focused on the other side of that coin.

If you own an SUV, it's probably losing value.

Gas prices rising steadily toward $4 a gallon have driven million of consumers to buy smaller cars this year. When they buy that small or midsize sedan, a tremendous number have used an SUV as a trade-in -- leading to a glut of SUVs sitting on used car dealer lots this spring.

The AP explains, "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." The "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."

The Orlando Sentinel says "Used-car dealers don't want the big vehicles on their lots anymore because hardly anyone is buying them. Some won't take them at any price."

Guy Lance, sales manager at Admiral Nissan in Pleasantville, New Jersey, told the Press of Atlantic City that he increasingly sees "people trying to trade in SUVs that are less than a year old." Lance added, "Normally, people don't trade out that quickly," but, "Let's admit it, when you go to a gas station and say, 'Just put $90 in my truck,' that's a little hard to swallow."
http://usnews.rankingsandreviews.com...s-is-Crashing/
Dave Eller, general sales manager of Hurley Chrysler Jeep in DeLand Florida, told that state's News-Journal that "some large vehicles are dropping thousands of dollars in value each month. … Anything diesel has dropped $5,000 in the past five months," he added.

Used car dealers facing lots filled with unwanted SUVs are struggling to figure out how to unload them. Many may be going overseas. Sales manager Al Johnson of AutoNation's Maroone Nissan in Pembroke, Florida told the AP that "the dealership had been exporting about one car a month" in recent years, but "this year they average roughly 10."

 

If they get cheap enough, i may pick up a '01 or '02 Tahoe/'Burban Z71 on the side for off-roading, lol..

 

You'd have to be stupid to buy a Tahoe right now or even a Pathfinder. I woudn't. When we were SUV shopping last year, one of the big turnoffs about the X5 was that poor gas mileage, even of the I6 when compared to the RX350. We took a gamble on the RX400h and it has really paid off.

I think people will be more inclined to buy Camry and Highlander hybrids or even the Saturn View hybrid instead of big gas guzzling SUVs.

What can be done?
I think these larger SUVs need to have smaller engines in them if they want to stay alive. Why not put the direct injected 3.6L into the Tahoe? Would that really be so bad to sacrafice a few torques. Most people don't tow stuff anyway. Ford seems to have gotten the right idea with 2.0L turbo Explorer due out soon.

 

Well, i meant like a year from now when gas is even worse, and i could pick one up for REALLY cheap.

It obviously would not be my DD. (Notice i said off-roading.)

 

Oh, oh no. Thats not what I meant. I meant you would be stupid to buy a new Tahoe or something to haul your 2 kids around. As your family vehicle.

Yes, getting a cheap used one for weekend use wouldn't be so bad. What you save in cost of the vehicle could be used for fuel.

 

I'd really like to be able to get a 07+ body style one for that purpose since they've really done some things with build quality, and the suspension. (Still too pricey for what i want it for however)

I guess we'll see where prices are in the future. lol

 

That's OK by me... I plan on keeping our 4runner pretty much until it's dead anyway... around 100k miles it'll stop being my wife's daily driver and just become a sort of beater for me to take on camping trips and to the lake.

It gets pretty good mileage anyway... 20ish in the city and 23ish on the highway... really barely any worse than my GS400... better, really, if you consider the fact that the GS400 required premium.

 

It is going to be a great time to buy a SUV. Cayenne S ftw!! lol

 

Let's not overplay the low SUV trade-in or residual values either. No matter how expensive gas gets, there will always be people who need a big SUV or truck for..................

 

they use them for that once every 6 months, the other 99% of time they're just wasting gas as a daily driver....with 1 person riding in them of course.

 

I don't have any hard data, but I would guess that the majority of body-on-frame SUVs have never towed anything in their lives, or gone offroad.

 

I hope that body-on-frame SUVs just die off.

 

Hey now, there's no reason for crazy thoughts here

 

I need the resale on GX 470s to plummet. That's what I really want

 

Some do, some don't. The fact is that there are still people who want.....and need.....a large, body-on-frame vehicle. This is more so in rural areas, on farms and ranches, than in urban.

Many people, especially single women, have been fooled into thinking that they have to have two to three tons of metal around them for safety.....so there is some merit to your statement about those driving them alone, needlessly.

Others drive these big vehicles, gas-wasters or not, simply for the ego factor. They want to be able to bull their way around on the roads, in and out of lanes, without anybody standing in their way. If you're in a 1900-lb Chevy Aveo, and a big-brother, 6000 lb. Chevy Suburban comes up behind you fast and honks his horn, in 99 cases out of 100, that Aveo will move over QUICK.