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What goes around, comes around... at least in the retail auto business. A combination of high fuel prices and aggressive incentive programs on new vehicles has conspired to put used SUV prices into free fall. According to industry analysts, the wholesale value of used large SUVs in April was down 4.1 percent over last year, and 4.7 percent from March.
The trend is particularly painful for Ford and General Motors, who sell most of the large SUVs. Because most new vehicle sales involve a trade-in, and current SUV owners are prime candidates for buying a new SUV, declining used SUV trade-in value hurts dealers trying to sell new models.

But wait, there's more. Over 220,000 large SUVs were leased in the 2002 and 2003 model years, and owners are turning them in just in time to further depress the used vehicle market.

The result? Reuters reports a Ford analyst as saying the large SUV market looked set for a double-digit percentage decline in 2006, a bigger drop than the automaker had earlier predicted.

[Source: Reuters]

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    • 1 Second Ago
      • 9 Years Ago
      Sounds like a great time to pick up a nice off-lease Tahoe!

      The SUV era may be over for people who don't truly NEED the advantages an SUV offers, but it's not over for me!

      What's the towing capacity of your Passat Wagon, James - and how many people can it hold? My 2000 Durango can carry seven people and tow over 7000 lbs. I use both of these abilities often. I'll be loading up my family of five (+ a couple of the kids' friends) and heading to the lake with my boat in tow this weekend. Try that with a Passat.

      Oh... and comparing the depreciation of any current vehicle to that of a 13-yr-old Civic is positively ridiculous. ***Of course*** it hasn't depreciated any in the past year! It was virtually worthless when you BOUGHT it - and it's value should remain flat as long as it runs. You're comparing apples to... unicorns.
      • 9 Years Ago
      That $1000 you save by buying a Suburban will offset the price of a lot of gas. If they get much cheaper I may have no choice but to pick up a nice used Tahoe to use as my every day vehicle.
      • 9 Years Ago
      "3. Good thing I went for a "fairly reliable" MY 2000 Passat Wagon...the space of an SUV but lighter, faster, more ga$ friendly(I get 35mpg fwy easy..) and center of gravity is lower to the ground(safer handling)than your average, bonafide SUV."

      Look at how smart he is!! Look at him! Look at him, ladies and gentlemen!
      • 9 Years Ago
      "24. Poe is among the minority of SUV owners who actually use it like a SUV. Most buy SUVs because they are/were the "flavor of the month"."

      Mabye-but it is all just "artificially needed".

      So if I get this correct, If i'm a single guy and want to drive a jacked up ford excursion, as long as I buy a boat then I'm justified in an SUV purchase? From a towing point, I could see you say "yes" but all you really did was purchase justification.
      • 9 Years Ago
      42. "An you don't really NEED a car either Ryan. Move to NY and take the subway."

      -Gladly Anne, if you pay for the move you can have our cars.

      No problem Ryan. Give me your cars and I'll give you a Greyhound ticket. There should be some cardboard boxes waiting for your family in NY. Wouldn't be much of a downgrade I'm sure...:)

      And Ryan, tell your wife her "pie" was good....little punk.
      • 9 Years Ago
      Everyone is entitled to their own opinion and decisions, isn't that great.

      If you can afford to keep and maintain and SUV and it is a useful vehicle for you, then choose an SUV.

      If a wagon is best for you, I say go for it.

      Both are comparable, and now auto companies are coming out with cars that combine a little bit of both. Isn't it fantastic!? The auto companies see the needs of consumers and do what they can (even if it takes years) to meet those needs.

      Yes, gas is expensive and we can try to be optimistic that the price will go down or we can be somewhat realistic that even if prices do go down, they will go up first.

      YES, SUV's are more expensive in insurance and gas milage, but for those who need them, this isn't a problem. The whole world doesn't have to like them.

      My first car was a blazer, and it was good for me, I worked on a farm and I needed the features. My last two cars. . . wagons! Perfect for me now, with kids and dogs, groceries and efficient fuel milage for travel. I dock my boat. I don't need to tow it, but If I do, my wagon can do it. I have up to 2500 lbs. I couldn't afford to fuel a bigger car or a bigger boat, so I'm all set, but there are those out there who require more. Lets just keep that in mind.
      • 9 Years Ago
      "From a "business standpoint" you shouldn't be driving a car--period."

      Not true, you generally (esp in the USA) need one to make money, but the key is to minimize your business expense to maximize your profit, surley I'm not wrong on this one.

      My use of "business standpoint" was loosely referring to your family/single income, think of it as a business.
      • 9 Years Ago
      Another great article that points out the media bias in this country. Where is Toyota?

      - Toyota is "America's car company" now.
      - Toyota is #2 soon to be #1 in the world
      - All the article talks about is how it hurts GM and FORD. How about pointing out that it's hurting everyone -- including the media favorite Toyota?

      Nothing was mentioned about Toyota's YTD sales:

      - HIGHLANDER sales down -13.7%
      - LAND CRUISER sales down -37.7%
      - SEQUOIA sales down -28.8
      - TUNDRA sales down -16.1
      - LX 470 sales down -15.6
      - GX 470 sales down -27.7
      - RX sales down -9.2

      All sales based on last months figures : http://www.toyota.com/about/news/corporate/2006/05/02-1-sales.html


      • 9 Years Ago
      Awesome...I could get a good deal on a truck that I can use for towing and start seriously thinking about doing some track days next yea

      • 9 Years Ago
      Can we stop fighting about petty stuff? SUVs have always had a place and niche--but unfortunately the interest went far beyond what made them useful.

      "My mom started and kept buying SUVs because she is 5'2", and the higher seat height let her see over other cars."

      See, now this is exactly what's wrong with the lot of SUV drivers. People buying giant hulks to compensate for their bad driving. If you can't see behind you in a Toyota Corolla, you shouldn't be on the road. And I can't tell you how many times some soccer-mom-looking driver cut me off and almost hit me w/o even noticing I'm in her blind spot. If you want to move around you kids, buy a stationwagon. If you're packin loads of outdoor gear and taking dirt roads, by all means buy that SUV. I don't mind SUVs when they're used for what's intended.
      • 9 Years Ago
      Whatever. I just bought a 2001 Suburban for dirt cheap. Yeah, it's a pig with an 8.1L V8, but who cares? I have three boys, and we camp, hike, ski. ride dirtbikes, surf etc. The previous owner paid $56K for that truck, and I got it for $14K. The difference buys a hell of a lot of gas. BTW -- it fits all of my government-mandated carseats, which I couldn't say about a small car.
      • 9 Years Ago
      "You certainly can't save money on gas by buying a second car."

      Nope, but you sure can save gas, and *eventually* save money.
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