SUV Trade-In Values Plummet

By Edward Niedermeyer - The Truth About Cars
April 30, 2008 - 1,669 Views
As U.S. fuel prices head for $4 a gallon, US News and World Report takes a look-see at SUV resale values. The mag divines that weakening demand has dramatically eroded resale values. (Ya think?) Citing a CNW Marketing Research study, USN&WR says March sales of used SUVs are down 14 percent from last year, after dropping eight percent in the first two months of this year. The story also kicks some journalistic tires at used car lots, where dealers no longer want to stock large vehicles. A Sales Manager from a Florida Chrysler/Jeep dealer says "some large vehicles are dropping thousands of dollars in value each month… Anything diesel has dropped $5,000 in the past five months." So where are all the body-on-frames going? Overseas, according to the Sales Manager of a Florida Nissan dealership. Apparently (hey it's a used car dealer), the store's been exporting about one car a month" in recent years. But this year they average "roughly 10." (Roughly? Would that be, say, five?) Add nasty depreciation onto huge operating costs, and it's not hard to not see the future of the SUV.US News and World Report »
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