Dealers see SUV glut as drivers trade in gas guzzlers

[Newsjock]

Source: Associated Press

... 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.

... For a decade, many Americans bought big SUVs like the Ford Expedition, the Chevrolet Tahoe and the Toyota Land Cruiser as they benefited from a booming housing market, low fuel costs and a steady economy. The SUV became a status symbol.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/04/25/financial/f113639D87.DTL&tsp=1

[NJmaverick]

1. Good news, retire the gas guzzlers and WE ALL are better off

[Warpy]

2. The same thing will happen now that happened in the 70s

People with means will dump the gas guzzling dinosaur in favor of something more sensibly economical. Car lots will drop the prices on the dinosaurs and the people who will buy them are the poorer people who need cheap transportation and can no longer afford the economical cars on the lots.

When you saw a land barge by about 1979, you knew the driver was either rich and stupid or poor and desperate. I think that's the pattern that will emerge now.

[NJmaverick]

5. I think there is one thing that changes that dynamic

In the 70s most people bought their cars. Now many people lease their cars.

[TheCowsCameHome]

8. And now the cars own the people.................

[Warpy]

10. Many is not most

and it's the poorer people desperate for something to drive to work who will get stuck with the dinosaurs, whether or not they were formerly leased to yuppies who needed "enhancement."

[4waterfalls]

24. At least it is a start

hi,first post on DU goes to you..lucky you lol
a timely subject and your response resonates with me.As changes for the better occur,as usual,the poorest will be the last to benefit.We have had years to maintream efficient fuel cars and green cars as well.By now,both should have been made affordable to the poorest of drivers.Funny how those dinosaurs were a symbol of economic status..now the opposite will be the case.Civilization should build from the ground up..sadly..ours builds from the top down.Top heavy things tend to tip over.

[Warpy]

26. Welcome to DU

and that was a great first post.

If you've understood that much about how the world works, you definitely belong here with the rest of us!

[splat]

32. I don't know a single person who leases a car

Where do you live?

[BearSquirrel2]

15. Hopefully this time ...

Hopefully this time they will be smart about fuel efficiency instead of just shrinking interiors.

[Gormy Cuss]

21. Deja vu.

I've been thinking the same thing. The SUVs will either be sold overseas (there's probably a market for them in some oil rich country) or moved to the second hand market here. Today's status guzzler is tomorrow's beater -- the nouveau Delta 88. And yet again some of the lower income people will end up with the cheap to buy, expensive to fuel land yachts.

[superkia]

30. Nah, they would just stick with the running out of oil theme and...

keep the prices shooting to the moon. We could have a miracle and be using 80% less oil and they would still be increasing the prices, its all a game to those bastards and we are losing bad!

[Mountainman]

3. I'm keeping mine, I owe more than it's worth as a trade-in and I don't

want to go into debt another 20 or 30K. Besides I don't drive very much, about a fill up every other week. It doesn't make economical sense for me to get rid of it.

[TheCowsCameHome]

9. Many people are upside-down. You're not alone.

[xioaping]

33. Please consolidate your trips

If you don't put many miles on your SUV, then you will never make up the difference in gas milage to make it worth it to trade it in. But do us all a favor, consolidate your trips.

[TommyO]

37. MountainMan already said he drives it very little

with a fillup every two weeks.

Consolidating trips is something everybody should do, not just SUV owners.

[xioaping]

41. Mountain Man is a good man then

As for me, I use exactly one gallon every two weeks to get to work and back. I work seven days a week.

I used to use even less gasoline when I had an electric scooter but it was just too slow so I did a bad thing and bought the gasoline one. It does 35 mph which is what I need to be safe in traffic. Feel a little bad cause I was very proud to be gasoline free life.

My electric bill is only $37.58 this month which really make me happy. My carbon foot print was very low last month as far as electricity use goes.

Sorry if it sounded like I was not happy with Mountain Man but we all need to do more so if he can consolidate trips that will be better.

[CatholicEdHead]

4. I was way ahead of this trend

I went to a used CRV back in 2004 and have not looked back since.

[Arctic Dave]

6. My wife and I were talking about this a few weeks ago.

All around Anchorage the used car lots are crammed full of these bloated relics.

[TooBigaTent]

7. Never owned one, never saw a need to. While our children were growing up,

we owned station wagons (remember them?). Enough room, drove better than a tank, and did not cost a fortune. Now, we are back to a sedan.

SUVs were just expressions of greed and arrogance. I would guess that maybe 5% of owners really needed one.

[PghTiny]

11. Nowadays, the only wagons you see come from Europe

That's what Europeans do when they need more cargo space. They get the wagon version of the car they want.

[melm00se]

16. dodge magnum

[Xithras]

17. Station wagons are now called "Crossovers". Same vehicle type, new name.

Subaru Outback, Dodge Magnum, Ford Edge, Nissan Murano, etc. Crossovers are essentially what we used to call "sport wagons" back in the 80's. Manufacturers don't want to call them station wagons any longer because they buying public considers the term old fashioned.

In another year or two you'll start seeing "Economy Crossovers" on the market. Think "crossover with little engine", aka modern station wagon.

So long as Ford doesn't start selling the Pinto II, I don't care what they call them.

[kestrel91316]

12. Me neither. I have about the oldest car in town - my 1988 Accord.

And yes, I am the original owner.

(I'm looking at the Nissan Versa as my likely next car)

[Q3JR4]

13. I don't think I'd ever buy an SUV.

Since I don't currently own a car, perhaps the point is moot.

Q3JR4.
BIG SUV=SMALL PENIS - Seen on a bumper sticker

[dipsydoodle]

14. Should get themselves Jeep Patriots

even I've got one and there's nothing wrong with 42 mpg to one of our Imp. gallons.

I suppose they do sell the 2.0 CRD in the USA ?

[happyslug]

29. Called the Jeep Compass in the US and only started to be sold in 2007

http://en.wikipedia.org/wiki/Jeep_Compass

The diesel version is NOT available in the US.

[dipsydoodle]

36. No - not that wimpy looking effort

one these :

Here's Jeep's UK site with the spec's etc, just click on Patriot : http://www.jeep.co.uk/jeep/index.aspx

I'm surprised you haven't got the diesel engine which is VW as is the 4wd train.

[gaspee]

18. MId-sized pick up truck

I use it for work (delivery) and get 20 highway, 15 in town. can't afford one that's better on gas and I need to haul stuff for work.

I took the tailgate off and put up a net instead and I get 2-3 more MPH per gallon.

It's 8 years old and I don't see myself getting anything newer anytime in the next 5 years.

It's paid off and that's the best thing about it.

With 135,000 miles though, I don't know if I'm going to be able to afford the upkeep.

[cosmicone]

19. One of the comments on the SFGate article ....

"jonvn
4/25/2008 11:52:59 AM

Does this mean I won't get $50k out of my Escalade? Gee. I was going to trade it in for a Ford F350, because it gets even worse mileage, and I have even less use for the Ford than the Cadillac. What am I going to do now? As an American, I have a right to buy utterly useless and wasteful vehicles that are absolutely ridiculous for me to own. I guess I'll just have to take out another mortgage on my house. Maybe if I can borrow up to the full equity of it, I can get the F350 and a Humvee. Proud to be an American!"


hahahahaha This guy gets an A in sarcasm.

[ohio2007]

20. More UAW layoffs comming soon. Those union jobs won't be comming back. nt

[InkAddict]

22. Umm...I dunno...almost big enough to live in...

One can rig add-on tents and awnings too; a sort of downsized covered wagon for wage-slaves. Watch out though for drivers whose blood sugar is extra-low cause they bought gas instead of food.

Circle the SUVs and point the guns out; oh, the irony--it's a Grand Cherokee.

[lovuian]

23. Yep my friend bought a Landrover which got 6mpg on highway

and they bought it for like 45,000 had all the bells and whistles now they gan only get 5,000 for it

My friend then went out and got another gaz guzzler again

IDIOTS

[Strelnikov_]

27. 6 mpg? Fully loaded tractor-trailers get that for mileage n/t

[NickB79]

35. And I thought my friend's parents were insane with their 8 mpg Hummer. nt

[Stinky The Clown]

25. Lacking SUVs, what will the penis challenged male use now to compensate?

[orleans]

40. i suspect they might start bragging about who spends the most money

to fill up their gas tanks.

[morningglory]

28. Great! Maybe everyone can get one cheap to LIVE in!!!!11!1 nt

[Sen. Walter Sobchak]

31. Hah hah!

I have taken alot of crap over the years for my shitty old Toyota as everyone I know went out to buy all sorts of obscene SUV's - I have $25,000 saved to buy a new car but I just haven't been able to find anything that enough of an improvement over my old Toyota to justify spending the money.

Meanwhile over the last few months alot of old Hondas, Toyotas and misc small American cars have been showing up in the parking lot to keep my old Toyota company as the SUV owners find their Hummer just isn't practical for driving to work. Gas would have to be $20 a gallon before I couldn't afford to fill my Toyota.

[Trajan]

34. Didn't see this coming 7 years ago while the Bush Administration begged ...

everyone to buy HUGE gas guzzling semi 'trucks' for their families because oil was plentiful and cheap .... They were falling all over themselves to mock the reasonable citizens who questioned that judgment ...

Now: The 'soccer moms' and the 'Nascar dads' are feeling the pain ? .... WTF did they think would be the result of a selfish energy policy and the intentional suppression of wages for American families ?

They have what they should have known would happen: The American economy falling off a cliff ....

[ohio2007]

39. ..but Iraqi oil was going to pay for the war.....we pay at the pump

How ironic after all these years of not being asked to sacrifice

[onager]

38. Trade your Corvette for a fuel-efficient...Suburban!

SAN CLEMENTE, Calif. (CNNMoney.com) -- Kent and Mysti Cope met and fell in love working for one of the nation's top subprime lenders. Now, their life has been turned upside down after the sudden implosion of the subprime mortgage industry...

Today, they're trying to get by on his unemployment benefits of about $450 a week, which covers only about an eighth of the basic payments they owe every month...

And they've made cutbacks: trading in Kent's Corvette for a Suburban...

http://money.cnn.com/2008/03/31/news/economy/copes/index.htm

The whole article is worth reading. Kent and Mysti come off as...uh...well, let's say, not exactly the sharpest pair of tacks in the corporate bulletin board.

And how is Kent planning to make a comeback after the subprime mortgage industry tanked?

By seeking work in a red-hot growth sector, of course. He's studying for a real-estate license. In a location with hundreds of foreclosed houses sitting vacant.

Rumor has it, he just bought his first property and plans to flip it for a huge profit. He bought a piece of real estate connecting San Francisco with Marin County. Just needs a new coat of paint and some light cable repair...