http://www.detnews.com/apps/pbcs.dll...ON03/804300309

I take no joy in this but it was inevitable.

Bob Wilson

 

We took a beating trading in an absolutely loaded Jeep Commander to lease an HCH. Eked out a bit of equity on it, tho', but only because we put down more than half. That's just the way it is now. Wait another year. Mommies will be dropping off kids at school in Focuses, Civics, Corollas, and Cobalts instead of Tahoes, Expeditions, Range Rovers, and ML500's. Now if America could only make a desirable 40+ mpg sedan......

 

The folks who find themselves most upside down are relatively recent purchasers of 1/2 ton SUVs,and folks who purchased 3/4 and 1 ton Diesel pickups a couple of years ago.
The SUV buyers -Suburban/Tahoe- probably paid $38,000 on average,and financed well over $30,000.Used Suburbans have absolutely nosedived in resale value,so they are poison as a trade in vehicle.These poor folks won't be rightside up until about 5 minutes before their last payment. Many of them bought before it became obvious-say 1 year ago-that gasoline was heading one way-up-for a long time.

If these owners are middle-middle class they are looking for a way to bail out of the high fuel costs, but they are stuck until the end of their loan.

The Diesel pickup buyers aren't in quite as bad shape,since someone will buy them as a work trucks-eventually.Unfortunately, many folks bought big diesel pickups as "fun" trucks with the idea that"they get good mpg because they are diesels".Diesel pickups were "hot sellers" until about 1 year ago,so they weren't discounted much-averaging about $40,000 for a loaded GM or Ford-Dodge was cheaper.
Charlie

 

It's not all bad. For those fortunate enough or had insight (no pun intended) enough to buy fuel efficient vehicles in the last few years, the trade-in prices are soaring now. Toyota offered over high-book for my wife's Forester and I did not consider the quote for a new HiHy to be "bumped up". (Mind you, they weren't exactly discounting it either -- a sign of the times.)

 

Phoebeisis is right on the money. Plus it's got to be hard on someone to go from a roomy, powerful, loaded $40K vehicle with a bit of status to a "lowly" sub $20K car. There are going to be some crazy good deals on land barges this summer. Manufs are going to have to give $15K or more in incentives, which will drive down the price of used ones even more. Big SUV makers need to stop making them now or they are gonna get stuck with them.

 

Used car lots everywhere are littered with the large SUVs, that is why dealers now are getting to the point that they do not want them at any price. There are only a few people still buying them at this point. The market for them is disappearing.

 

I wonder if we'll get "Smart Money" tips from reporters like we did the last time we had surges in gas prices where they suggest you get a used or even new SUV, since you can get it for next to nothing. Ex. from 2006: http://www.myfoxdetroit.com/myfox/pa...d=1.1.1&sflg=1

WHAT?!?

I'm sure everyone who bought an Expedition in 2006 is still glad they got such a large vehicle for so cheap...

 

Funny you should mention this. My wife wants an RV and I have been impressed by some of the 'Class B' van conversions. They have a toilet, stove, heater and AC and a space my wife can lie down while on the road. She has an Echo that she hasn't driven in a year.

I like the idea of the van because of the EV conversion kit we've seen listed before and some ideas I have about alternate fuel. I would have no trouble making the RV van into something interesting. It could also probably tow the Prius on a wheelie dolly.

I'm going to head over to Decatur to see what they've got and find out if anyone might want to buy our Echo. ...

'Tis an ill wind that blows no good.'

Bob Wilson

 

Have you seen what Chrysler is doing? I almost fell off my chair. In order to keep touting "hemi's", they are freezing their customers gas prices at $2.99 a gallon. I don't know exactly how they are implementing this, I mean the money has to come from somewhere, it just goes to show you that the margins must be huge in order to eat this cost. But talk about going in the wrong direction, let's offer the addict cheap heroin instead of helping them kick the addiction!

 

I saw a write-up about the 'gas card' that would cover the price difference between $2.99/gal and the current price for their jeep. Some things are so dumb ...

Bob Wilson