The Other Credit Shoe Drops
Keith_Indy on May 06 2008 | Filed under: Economics, Keith's Page, energy
If being upside down on your mortgage isn’t bad enough, consider how many people are into large pickups and SUVs for more then they are worth. And now with gas prices climbing they want to get out of them.
The sale of new SUVs and pickup trucks has dropped precipitously in recent months amid soaring gas prices and a weakening economy: SUV sales for the month of April alone fell 32.3 percent from a year earlier and small car sales rose 18.6 percent. This fundamental shift comes against a backdrop of relentless gas increases, and growing concerns over the environment and US oil consumption, according to auto analysts and car dealers.
“The SUV craze was a bubble and now it is bursting,” said George Hoffer, an economics professor at Virginia Commonwealth University whose research focuses on the automotive industry. “It’s an irrational vehicle. It’ll never come back.”
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At the same time, consumers like Chrystall are flooding the market with used SUVs, trying to trade in hulking Hummers for compact Corollas, and getting thousands of dollars less than they would have just a few months ago. In April, the average used SUV took more than 66 days to sell, at a 20 percent discount from vehicle valuation books, such as Kelley Blue Book, compared to 48 days and a 7.8 percent discount a year earlier, reported CNW Marketing Research, an automotive marketing research company.
Get me a turbo diesel hybrid SUV that get’s 30MPG and I’d be interested in it. As a family hauler w/ toys trailered out back. Otherwise, my next new vehicle will probably be a turbo diesel sedan, and better get north of 40MPG.
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