by Tanta on 5/09/2008 06:39:00 AM
Friday, May 09, 2008
Thinking about trading in that Tahoe for a Civic? Sit down.
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.I'm waiting for Gretchen Morgenson to get all over this anti-consumer behavior. Meanwhile,
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.
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.Why, you should just hire some newly-under-employed Realtors®. They've had some practice at that kind of thing lately.
"It's a challenge," says Adam Lee, president of the Lee Auto Malls dealerships in Maine. "How do you tell a good customer, 'You paid $32,000 and now it's only worth $17,000?' "
AutoNation's Jackson says he thinks affluent buyers may be hanging on to their SUVs even after they buy newer, more fuel-efficient vehicles, banking on gasoline prices falling so they can sell their big SUVs later for a better price.Better hope you can hang on to that house with the three-car garage, then, because your HOA won't let you put it up on blocks in the yard, I'm afraid.
Posted by Tanta on 5/09/2008 06:39:00 AM