Tuesday July 26, 2005

Resale Value of SUVs Tumbles

This article belongs to the GM, Ford and Chrysler bankruptcy watch story arc.

peakoil.com -> usatoday.com :

SUV and pickup owners — already stung by rising gasoline prices — are paying another penalty when it comes time to trade in or sell: falling resale values for the gas-thirsty vehicles. The resale values of large SUVs and pickups are slumping in response to a supply glut, higher gasoline prices and lower sales of new SUVs and pickups.

Roy Holderbaum's love affair with his 1993 GMC Yukon recently came to an abrupt end when his gas bill shot to $100 a week. Now, he wants someone to take the hulking SUV off his hands. "It's a gas-guzzler. I'm selling because I can't afford to drive it back and forth to work," said Holderbaum, 23, a suburban Detroit resident who has a 20-mile commute.

Owners of SUVs might be trying to dump their vehicles because they foresee trouble in new SUV sales, which are plummeting despite hefty rebates. Demand for new full-size SUVs has declined 12% this year.

"When you look at the contrast between compacts and full-size (SUVs), it has to be driven in part by gas prices," [Tom Kontos, chief economist at Adesa, a firm that tracks wholesale used vehicle prices] said. "Why else would there be such polarity?"

See also :

1. Die SUVs Die!!
2. GM, Ford debt cut to junk status
3. GM to cut 25,000 jobs in U.S. by 2008

(2005-07-26 12:48:45 SGT) [Biz] Permalink

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