SUV Values Continue To Tumble

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." 

jprieur - 4/30/2008 12:24:27 PM

+8 Boost

I always laugh when I see all of these families with 2 kids and a suburban/expedition/H2. Now I am laughing even more when I see them complaining about the price of gas/trying to get rid of their overprice gas guzzler.

HINT TO AMERICANS: Station wagons have been around for years, they still hold your 2 kids, dog + all of their associated junk. Have more than 2 kids, try a minivan.

0to60 - 4/30/2008 1:15:40 PM

+4 Boost

LOL @ 1995

0to60 - 4/30/2008 2:00:18 PM

-4 Boost

Minivans and Wagons are no fun to drive. Crossovers are acceptable alternatives although most of them are the size of a car and only seat 5.

Carboy - 4/30/2008 3:33:21 PM

+2 Boost

My family isn't complaining about anything. Shut your mouth up.

And Americans are not dumb.

Rupert - 4/30/2008 6:43:16 PM

+6 Boost

0-60 - a minivan or a wagon especially will be more fun to drive than an SUV, they are lighter, faster and have lower centres of gravity.
That's the thing, no matter how much BMW tells us an X5/X6 handles like a sports car, a 5 series touring will be faster, more fuel efficient and more fun to drive.

S4cabriofoxone - 4/30/2008 8:29:08 PM

+4 Boost

"Minivans and Wagons are no fun to drive."

Excuse me?

1. And an SUV is?

2. A wagon will ALWAYS be more fun to drive than its SUV counterpart. It's based on a sedan! Good sedans are fun! Good wagons are fun!

0to60 - 4/30/2008 10:35:53 PM

-2 Boost

OK!!! well their just not kool. They are trying to make the 2door hatchbacks kool and maybe they are, but wagons havent caught on. Maybe the magnum but thats it. Sorry!

0to60 - 4/30/2008 10:38:39 PM

-3 Boost

And it irks me to see a 5 series wagon. Its like they took a great car and put a camper on it. It just doesn’t look right. I think the 5 series is too classy for the wagon.

Rupert - 5/1/2008 1:25:52 PM

+2 Boost

The 5 series has been a wagon for about 20 years...there have been M5 wagons! How are wagons not good? I would never buy an SUV, I would always buy a wagon.

montyz81 - 4/30/2008 4:28:25 PM

+2 Boost

Crossovers and wagons can't tow a 3500lb car and 1500lb trailer. At least none that I have seen.

ceric - 4/30/2008 6:16:41 PM

+1 Boost

Small crossovers do not tow much.
Mid-size ones like Pilot, CX-9, Highlander, GM Lambda quadruplet can tow 3500-4500lb
with tow package (mostly cooling add-ons).

t_bone - 4/30/2008 9:20:05 PM

+1 Boost

I always enjoy the towing argument. It is a valid one, but at $4/gallon I wonder if the boating "lifestyle" is wavering on those twin V8 inboard engine fill-ups at the marina.

mercuryguy - 4/30/2008 6:29:40 PM

+1 Boost

Here in New York State, people are reluctant to trade their SUVs in, because of the Nearly 10% sales Tax on new car purchases.
$3,500 in Sales tax buys more than a year’s worth of gas.
So let’s get real people. We pay New York State 38 cents tax on every gallon we buy, and the Feds get 18 cents.
Hillary has done nothing to help struggling families in New York State with these high taxes. Property taxes o a modest single family home in Upstate New York is $7,000 to $10,000 per year.
I know the Chinese worker is not strapped with these kinds of cost liabilities. This is how they can work for less.
You can’t get the American worker to work for 50 cents per hour, unless you bring the cost of everything down.
In response to public outcry, New York State lawmakers are thinking of suspending the New York State Tax on gasoline for a few months, but the counties are shooting it down, as they believe the schools will suffer.

mercuryguy - 4/30/2008 6:35:38 PM

+2 Boost

On Towing:
The Mercury Grand Marquis will tow 5,000Lbs. This vehicle is decent on gas because it is only 2 wheel drive. The Hitch is easy to install, because it bolts to the full frame under the car. This is among the few cars that offer a real frame anymore. The car is built like a mini truck. The V8 engine easily tows a boat up a ramp. This is a 5 passenger car with plenty of trunk space including the full-sized spare, another item considered a luxury on cars these days. People don’t know about this car, because Ford doesn’t market it on TV.

S4cabriofoxone - 4/30/2008 8:30:14 PM

+3 Boost

I know all about the Mercury Grand Marquis... And I would still never buy one, not a chance in hell.

Sorry.

mercuryguy - 4/30/2008 6:59:02 PM

+2 Boost

The Mercury Grand Marquis has rear Air Suspension that you automatically inflates to raise the back end up on heavy loads and heavy tounge weights.

mercuryguy - 4/30/2008 8:59:48 PM

+2 Boost

Q. 1995e34 -what portion of the budget do you recommend cutting to make up for the lost tax dollars?

A. Well I guess it is ok that George Bush allows business owners to deduct Gas Guzzling SUVs off their taxes, but regular working people somehow don’t get to share in this. I guess we don't count.

ChicaneShooter - 5/1/2008 9:26:40 AM

+1 Boost

"It will be great day when our schools get ALL the funding they ask for and more; and the Pentagon has to have bake sales to buy their ships and planes."

THEREIN is the problem UNDERLYING the wastage of what taxes we do pay, as well as the plummeting of the dollar which is the lever pushing oil prices upward.

mercuryguy - 4/30/2008 10:50:08 PM

+2 Boost

Efficient Ideas from Ford
Looks like Ford is taking steps to save us. They are planning to build the 2009 SUVs and trucks with the new 4.4 Liter Turbo Diesel. If they took it a step further and allow people to choose 2-wheel drive and a manual transmission, these vehicles would become even more efficient.

http://www.motortrend.com/future/spied_vehicles/112_0804_lincoln_navigator_diesel_spied

Kirk Kerkorian just bought a huge stake in Ford due to his renewed confidence in the product line. It caused Ford Stock to rise 9%.
Excerpt:
Billionaire investor Kirk Kerkorian, making another attempt to shape the U.S. automotive industry, disclosed Monday that he had acquired a 4.7 percent stake in Ford Motor Co.

GinsterCQ - 4/30/2008 10:59:14 PM

+3 Boost

I LOVE reading articles like this. Personally, I can't stand SUVs. It irritates me so much seeing some housewife driving herself around in her 6000 lb Suburban all by herself. Such a waste.

Also, anyone who claims they NEED an SUV is out of their mind. I know when I grew up before vans and SUVs, we survived just fine with a sedan or wagon.

In a way, I can't wait to see the values tank even more, and eventually these beasts are off our US roads.

ChicaneShooter - 5/1/2008 9:34:08 AM

+2 Boost

even MORE irritating, is seeing that a lot of these behemoths are piloted by PETITE 4' 11" women!

what is it that makes small women love OVERSIZED tanks? (yes, probably hubby actually buys 'em; but what does he drive when they tend to co-opt driving the beast?)

mercuryguy - 4/30/2008 11:16:28 PM

+1 Boost

I wish I could buy a Diesel Wagon or large Diesel Sedan, but know one mainstream makes one. If you have the money, I think you can buy one from Mercedes. If only New York State would lift the ban on Diesel cars.
A wagon does make more sense these days, but gasoline engines are an obsolete idea. Same reason why very few boats are made with gas engines anymore.

mercuryguy - 4/30/2008 11:28:42 PM

+1 Boost

The 4 wheel drive gearing is primarily why SUVs are inefficient. I have driven 2 wheel/rear drive in snowy Buffalo for years without losing control of the car. Of course I buy top of the line snow tires, and put them on every winter. Most people don’t want to take the time to do this. They would rather just buy a 4 wheel drive. I see next year, Quebec will make snow tires mandatory as most all-season tires don’t fare well on snow and ice.

hao420 - 5/1/2008 1:22:18 AM

+1 Boost

Ho..Ho..., time for Crossover rules.

jprieur - 5/1/2008 10:42:30 AM

+1 Boost

The sad truth is that everyone in this country is so damn image conscious that they would NEVER be caught dead in a wagon.

Subaru Outback . . . nice looking/fun to drive even has all wheel drive

Volvo V50 . . . nice looking/safe as a bank vault

Just two of the many alternatives out there.

Rupert - 5/1/2008 1:30:04 PM

+2 Boost

A4/C class/3 series or A6/E class/5 series wagons, Volvo V70...there are choices out there. Unless you live somewhere really really snowy (or need 7 seats), I just don't understand the point of either the ML, Q7, X5, X6, X3, Q5 or GLK over their wagon counterparts. I'm sure that they are in fact less practical, and of course handle worse and get worse fuel efficieny than wagons. Plus they're slower! Pay more money for a slower, heavier, worse handling car!

Htay7500 - 5/1/2008 3:31:45 PM

+2 Boost

outback ftw.

mercuryguy - 5/1/2008 8:54:42 PM

+1 Boost

I like the Audi Q wagon. It doesn’t look like a Soccer Mom Car. How many can afford one though.
Subaru makes nice cars, but who needs 4 wheel drive guzzling more gas on a wagon these days? We need to go back to rear wheel drive wagons with a stick shift and a diesel powerplant.

mercuryguy - 5/1/2008 9:35:04 PM

+1 Boost

I hear that Subarus wear tires funny, due to the 4 wheel drive.

Who needs 4 wheel drive gas guzzlers these days. 2 wheel drive is a better idea.

I do think Subarus are well made though. they make nice wagons. It is probably the only Japaneese car I would even consider.

If Subaru built a Diesel Wagon, I would buy one, since the Big 3 have not done so as of yet.