Trade in value of SUVs is crashing

[JulesMaximus]

Text

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."

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."

Not much of a surprise with gas prices over $4/gallon I guess. Sucks if you just bought an SUV though.

 

[olds]

Death of the SUV?
no

 

[mugs]

Originally posted by: JulesMaximus
Not much of a surprise with gas prices over $4/gallon I guess. Sucks if you just bought an SUV though.

I would say that if you recently bought an SUV and you're worried about losing money, you're pretty short-sighted.

 

[Juno]

my 4 years old SUV is losing its value? wtf, my mileage isn't even 40,000 (almost at 38,000) yet.

 

[preslove]

When I get back to the states I want to find job and apartment I can bike to and from. After a year or so I'm going to look for a new car. Maybe I should get a used SUV

 

[amdskip]

Good, its about time people start making some logical decisions.

 

[JulesMaximus]

Originally posted by: preslove
When I get back to the states I want to find job and apartment I can bike to and from. After a year or so I'm going to look for a new car. Maybe I should get a used SUV

I'm sure you'll be able to pick one up dirt cheap. :laugh: The article says some car dealers won't even take an SUV on trade in.

 

[RKS]

We won't be trading our SUV in too soon.

In fact I need to re-attach my BullBar. When my wife is driving by herself to get her frappachino and talking on her cell phone; if she runs over a bicycle, I don't want it to dent the car.

 

[SuperjetMatt]

I was concerned about that when I recently switched from a 97 Blazer to a Toyota Sienna.
I ended up selling it for $2k to a Mexican.
We were both happy.

 

[thecoolnessrune]

Yep, no one wants SUVs right now. But that wont be the death of them. After all there's still tons of people like me who never consider trading their vehicles in, and run every single vehicle they own 12-18 years until it simply can't be economically run anymore.

 

[daveshel]

I hope so. I'm tired of following vehicles I can't see over, especially now that the price of gas has prompted them to lumber along at 2/3 of the legal speed.

 

[buck]

Originally posted by: amdskip
Good, its about time people start making some logical decisions.

 

[Crucial]

Sounds like a great time to buy one.

 

[iamwiz82]

Originally posted by: Crucial
Sounds like a great time to buy one.

Agreed. I'm sick of these $100 delivery charges for a 4 mile drive to deliver landscaping stuff or furniture.

 

[Amused]

Originally posted by: amdskip
Good, its about time people start doing what I think they should do.

Fixed

 

[Throckmorton]

Originally posted by: Amused

Originally posted by: amdskip
Good, its about time people start doing what I think they should do.

Fixed

You sound like one of those ex acid tripping teachers who doesn't believe in right and wrong answers and gives everyone As. There is such a thing as an illogical decision, and he has amdskip has every right to point that out, even if it hurts some moron's feelings.

 

[JulesMaximus]

Originally posted by: iamwiz82

Originally posted by: Crucial
Sounds like a great time to buy one.

Agreed. I'm sick of these $100 delivery charges for a 4 mile drive to deliver landscaping stuff or furniture.

Yeah, spending an extra $200/month in gas is a far better choice.

 

[Gothgar]

Originally posted by: SuperjetMatt
I was concerned about that when I recently switched from a 97 Blazer to a Toyota Sienna.
I ended up selling it for $2k to a Mexican.
We were both happy.

lol

 

[bignateyk]

Just bought a new RAV4. I'm sure I won't have any problem trading it in a few years from now.

 

[SuperjetMatt]

Originally posted by: Gothgar

Originally posted by: SuperjetMatt
I was concerned about that when I recently switched from a 97 Blazer to a Toyota Sienna.
I ended up selling it for $2k to a Mexican.
We were both happy.

lol

It needed quite a bit of work.
The back bumper was crunched a bit, the rear wiper doesn't work, the brakes are horrible, the AC has been shot for close to two years, and there are various electrical gremlins.
It has 159k miles on the clock.

 

[Kadarin]

This is no surprise. If the dealers can't sell full sized SUVs, why would they give top dollar for them on trade in?

 

[Perknose]

Originally posted by: Amused

Originally posted by: amdskip
Good, its about time people start doing what I think they should do.

Fixed

Oh! The irony!

 

[KB]

Originally posted by: JulesMaximus

Originally posted by: iamwiz82

Originally posted by: Crucial
Sounds like a great time to buy one.

Agreed. I'm sick of these $100 delivery charges for a 4 mile drive to deliver landscaping stuff or furniture.

Yeah, spending an extra $200/month in gas is a far better choice.

I bet iamwiz is thinking the same thing as I am - buying it, not to commute with, but to move stuff every once in a while. So to drive 4 miles a month would be 2.00 dollars not 200.

 

[JulesMaximus]

Originally posted by: KB

Originally posted by: JulesMaximus

Originally posted by: iamwiz82

Originally posted by: Crucial
Sounds like a great time to buy one.

Agreed. I'm sick of these $100 delivery charges for a 4 mile drive to deliver landscaping stuff or furniture.

Yeah, spending an extra $200/month in gas is a far better choice.

I bet iamwiz is thinking the same thing as I am - buying it, not to commute with, but to move stuff every once in a while. So to drive 4 miles a month would be 2.00 dollars not 200.

You still have to store it, maintain it, insure it and register it...not to mention the cost to buy it in the first place. Personally, I'd say that a $100 delivery charge every once in a while is a pittance in comparison.

 

[Amused]

Originally posted by: Perknose

Originally posted by: Amused

Originally posted by: amdskip
Good, its about time people start doing what I think they should do.

Fixed

Oh! The irony!

No irony. There is a constant theme in my posts and it's amazing to me that you've completely missed it.