It’s a rough world out there: First new cars and especially SUVs were pretty much unsalable. A few months ago, the recession drove used car prices sky-high. Then truck sales were back with a vengeance. Now that you finally have a new shiny SUV in the driveway (yeah!) you wake up and it has lost a huge chunk of its value, overnight. Says USA Today today: “The run-up in gas prices past $3 a gallon has been running down the value of used SUVs, causing prices to plummet below levels listed in well-known buying guides.”
Dealers find themselves drowning in SUVs again. “There are far more truck-based SUVs being traded in than customers to buy them,” says Mike Jackson, CEO of AutoNation.
Prices are falling so fast that the price guides can’t keep up: The average used SUV was selling for nearly 20 percent below the price listed last month in used car pricing publications such as Kelley Blue Book, CNW Marketing reports.
And there are much more cars that are not even on the market. According to USA Today, a lot of people “may be hanging on to their SUVs even after they buy new, more fuel-efficient vehicles, intending to sell them later when gas prices fall.
“A lot of folks are just abstaining from trading,” says Tom Kontos, executive vice president of Adesa Analytical Services. And they should. As long as the live in the Northeast, and as long as the roads aren’t cleared, they should be glad that they haven’t sold that SUV