Used SUV sales also slammed by low consumer interest
While sales of fuel-efficient cars and even small SUVs have been up, Americans who previously purchased mid-sized to large SUVs are finding it increasing difficult to sell individually or even trade them at dealerships.
Gas prices are the biggest culprit with most older SUV models barely climbing into the twenties for fuel efficiency. Worse, since used car buyers tend to have lower incomes than new vehicle purchasers, sellers have been forced to price their SUV below blue book value. States Robert Jerkin of East Brunswick, New Jersey, "We had paid about $30,000 for it (2000 Dodge Durango); the Blue Book price when we went to sell it was $8,000. We started advertising at $7,900 and kept dropping it. Nobody wanted a gas-guzzler, and there were so many being advertised at the same time." Jenkins eventually found a buyer who purchased the SUV for $6,000.
Dealerships have been especially taxed since the value of large SUV fluctuates constantly. Serra Automotive president Joseph Serra sees appraised prices change weekly. Only well-equipped, top-of-the line large SUVs, agree analysts, sell well since such buyers are less concerned with fuel costs.
[Source: Detroit News via Mobilemag]
Reader Comments (Page 1 of 1)
cheezedog420 7:48PM (8/24/2006)
this is vary mean spirited but... "HA HA SUCKERS!"
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G 9:31AM (8/25/2006)
Used SUVs consume more gas than new SUVs so the low consumer interest is logical in the light of higher prices.
http://www.automobilesdeluxe.blogspot.com
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Fabulo 9:08PM (8/25/2006)
Kelly Blue Book does not make up the value of a given model/year. They compute an average of what other people have paid for similar vehicles around the country. KBB is an indication of what you can expect for similar make/model/age.
The market ultimately drives the price, so when market condition change (here: glut of used SUV, higer gas cost) those conditions are reflected in the price.
KBB will catch up to those new trends.
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