Plummeting prices for used SUVs a problem for GM, Ford
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.
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