Gas costs deflate prices on used SUVs
High fuel prices are causing the value of used SUVs to plummet, often below what's listed in the buying guides many shoppers use to negotiate with dealers.
As a result, some new-car buyers think they're getting cheated by dealers who are offering them little for their SUV trade-ins.
"The dealer is going to offer a price, and the customer is going to be ticked off," says Tom Webb, chief economist for Manheim, operators of auctions where car dealers buy their used-vehicle inventories. "The guidebooks have not caught up to the market," he says.
Shopping guide Kelley Blue Book updates its values weekly at kbb.com, the online version, says Kelley's Robyn Eckard, so they should be up to date.
Webb's figures show wholesale prices on big SUVs such as Chevrolet Tahoes, Ford Expeditions and Toyota Sequoias are down 17% from a year ago. Full-size pickups have fallen as much as 15%, Webb says.
It took a little longer than I expected but it is starting to happen. Consumers are looking for a little more fuel efficient vehicles. I know that is a real concern for me here on the ranch. Maybe it's time to go back to horse and buggy. That is a lot more fuel efficient, except for the price of oats is sky high. If it isn't one thing it's another.
There're still a few clowns with more money (and ego) than sense on the road, of course, but it's getting better.
SUV's and huge pick-up trucks are discounted and prices are dropping here in the Cincinnati area. Lexus and Infinity dealers are screaming for business. I don't think the government rebate chacks are going to turn around the auto industry.