Will someone please buy my SUV?
Fuel economy is now buyers' top concern.
As the price of gas goes up, many people's desire to own a big honking SUV heads south. And so may be the value of that SUV sitting in your driveway.
growing number of SUV owners are finding that they owe more on their
vehicles than they're now worth. And those folks are going to have a
heck of a time getting rid of them at a satisfactory price.
This from CNN:
Owners might owe $20,000 or more when the vehicle is now worth $12,000. It's similar to an upside-down mortgage, and it may not make sense to try a trade-in. "What they might be doing is spending thousands of dollars to save hundreds," says Jack Nerad, the executive director of Kelley Blue Book's kbb.com. "Because if you make a trade, you're most often going to spend more to make that move than you would just sucking it up and paying the extra gasoline prices."
Behind the Wheel blogger Phil LeBeau writes about an SUV-owning friend who can't find a buyer at a price the friend will accept. Phil says, "He's not alone. ... As one dealer on the East Coast told me, 'Selling an SUV now is about as tough as it was to sell a compact car in the late '90s when sport utes were red hot.'"
What's going on here?
- Bing: Shop for used cars
recent AAA survey found that fuel economy is now consumers' top
consideration when buying a car, and the huge growth in sales of
compact and subcompact cars demonstrates that. (Last time we checked,
AAA said gas had surpassed $4 a gallon in seven states.)
Factor in supply (lots of SUVs for sale) with demand (people don't want them). The craigslist blog
said in late April that listings in the "cars and trucks" category and
for RVs were up 120% and 100%, respectively, from eight months
Plus, to inject a little humor here, driving a gas guzzler is a turnoff. "What do women find sexy? Hybrids. They're chick magnets," writes Chuck Squatriglia at Wired. "So says a survey by General Motors that found nearly nine in 10 women would rather talk to a guy in a Prius than a Porsche."
What should you do? Keep your gas hog, as Nerad of kbb.com suggests, and find ways to reduce your gas consumption. If you can unload your gas guzzler, try to reduce the damage by replacing it with a small used car. You don't want to end up like blogger "SingleGuyMoney," who kept rolling what he owed
on his previous car into the loan for each new car -- essentially
creating a monster 12-year car loan. Congrats to him for recently
paying it off.
Published May 26, 2008
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
Tired of your wallet taking a beating at the grocery store? Here are some creative ways to save big on food costs.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'