What PRICE Will Fuel Have To Get To BEFORE SUV Owners Trade Their Rides?

What PRICE Will Fuel Have To Get To BEFORE SUV Owners Trade Their Rides?
An interesting piece ran in USAToday recently. The group Automotive Lease Guide, a.k.a. ALG, did some research into how gas prices effect specific classes of cars.

According to its findings, a premium full-size SUV gets hit the hardest if gas prices raise a buck and its three years old. Considering depreciation is the most costly aspect of every vehicle, you definitely don't want to hear it isn't working in your favor. It's even worse if you're financing a vehicle over an extended plan.

Taking this into account we're a bit curious: Just what exactly will it take before we can pry SUVs from owners cold, dead hands?


You don't realize it until it's time to trade or sell your used car, but depreciation is your single biggest auto expense. A lot of things affect how much your new vehicle's value drops, but its mileage rating is becoming a much bigger factor for some vehicle categories...

...If gasoline goes up $1, your big SUV loses 13% in resale value when it's 3 years old, forecasts ALG, a.k.a. Automotive Lease Guide, the leading reference for residual values on which leases and other auto transactions are based.

At the other end of the scale, ALG says a $1 gas rise will boost the value of your cheapo econobox by 10% at age 3...


[Source: USAToday]


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truckmantruckman - 7/21/2011 3:41:44 AM
+3 Boost
I drive a 2007 Civic because I can't afford to drive an suv for commuting, my Civic costs me $350ish to $400.a month in gas alone, my old 4 runner would have costs me double that, although I will eventually buy a 4x4, maybe a 2 year old Raptor?lol I don't care what the resale is because I would drive it to the ground, then modify it to out perform what it used to be.


JDM_EK4doorJDM_EK4door - 7/23/2011 12:08:11 AM
+1 Boost
.


OBSERVER1984OBSERVER1984 - 7/21/2011 4:37:35 AM
+1 Boost
Today's european GAS price - over $8/USgallon


t_bonet_bone - 7/21/2011 9:26:10 AM
-4 Boost
I was surprised that SUV sales plumpted during sudden increases, but resumed when the same price can up slowly. But then again, SUV owners are not exactly the sharpest knives in the drawer.


OBSERVER1984OBSERVER1984 - 7/21/2011 11:35:10 AM
+2 Boost
@autospies2
Not only americans, but the biggest part of all produced SUVs are sold in America.

Do you want to know what's the bestselling vechicles in Europe:
VW Golf
Ford Focus
Opel Astra
Ford Fiesta
VW Polo
Opel Corsa
Peugeot 207
Citroen C3

And bestselling vechicles in USA for decades are these from F-series.

If you americans pay same GAS prices as the rest of the world you would never ever think about SUVs, Trucks and so on. But nooooo when you need cheap petrol you just attack some country with plenty of oil - Iraq, Afagnistan, Libya

Ohhhh wait, you would say you are there for PEACE, right? So where is american army when other countries in Notth America need help? Well it's not there because in these countries there is no oil.

You don't care if your car makes 10 or 20mpg, because you get your GAS almost for free compared to the rest of the world. 350 000 000 people want to screw 6 500 000 000 people. That's the problem!

Now you can dislike this, but your "dislike" will not solve the problem!


OBSERVER1984OBSERVER1984 - 7/21/2011 11:36:36 AM
+1 Boost
PS: North AFRICA I mean


OBSERVER1984OBSERVER1984 - 7/21/2011 1:29:04 PM
+1 Boost
Protect your country from what? From yourself?

Do you really believe that 9/11 was made by people who live in Afgan's caves?


Joe_LimonJoe_Limon - 7/21/2011 11:14:10 AM
+6 Boost
I don't believe gas prices have that large of an effect on vehicle ownership. Especially large SUV ownership. Clearly their are smaller cheaper vehicles that they could buy, but large suv owners chose to spends more for the extra space/utility/safety.

Let's give an example

Prius - Tahoe
50mpg - 13mpg
at 15,000 miles per year and $3.65/gallon
the Prius will spend $1095 a year on gas, while the Tahoe will spend $4212
Or... about $120 more per paycheck. To most drivers this is trivial compared to the space/safety/utility that is gained with a larger suv.

This comparison is made on two opposite ends of the spectrum. If a Tahoe owner simply wanted to get a smaller 20mpg suv they would be sacrificing space for only about $57 a paycheck which is honestly dick all to most large suv drivers.


1c3am51c3am5 - 7/21/2011 12:41:10 PM
+2 Boost
"I drive a 2007 Civic because I can't afford to drive an suv for commuting, my Civic costs me $350ish to $400.a month in gas alone"

----------------

Do you have an option to move closer to employment? If you are burning X+ gallons of gas, is that better than a SUV that burns the same X+ gallons over the same period of time?

I drive a large car (only avoiding SUVs because they're ugly and I don't like the ay they drive.. Could care less about the imagined effect on the "ecology"). However, I live fairly close to my employment and it would take me 6-months to burn $400 in fuel on commuting. So in effect, my particular car is more green than the aforementioned Civic.


truckmantruckman - 7/22/2011 7:53:17 PM
+2 Boost
1c3am5, I would have loved to move closer to my work, the problem here in British Columbia, Canada is the cost of housing, my house is worth $300,000. and the cost of houses in Kitsiliano starts at $1,200,000. even a run down house starts at over million, so that is why I was commuting, If I could afford to own where I work I would be driving a 4x4 for sure, because I wouldn't have to drive 2.5-3 hrs a day, I would drive a F-150 4x4 or Jeep with large tires...we all like different vehicles for our lifestyles, when I went from owning 4x4s all of my life to a 2007 Civic a lot of things changed, I haven't hunted since, and my camping has been at boring camp sited full of people, on the plus side I have taken up alpine Tour skiing and hiking/camping going to even more remote areas my 4x4 couldn't go, although many times my civic has trouble getting to the trail head and I have to walk.


JDM_EK4doorJDM_EK4door - 7/23/2011 12:07:43 AM
+1 Boost
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