Four dollars per gallon gasoline has not only kept new trucks and SUVs
in the lot at the dealer. It is also makes it more difficult to unload
used gas-guzzlers. Meanwhile, hybrids are quickly to the hottest
vehicles in the market.
"Gas prices and the impact on resale
value are the number one question we are dealing with," said James
Clark, Editorial Director of Automotive Lease Guide, in an interview
with HybridCars.com. ALG monitors and forecasts trends in the residual
values of cars and trucks. Hybrid cars were first in the United States
in late 1999-used as the hybrid market is still in its infancy, making
it difficult to forecast long-term resale values for gas-electric
vehicles.
But the recent trends are revealing. "In the last
month or two, we have seen values up, ballpark of about $ 15000 for a
model of the Prius in 2005 to around $ 17000. This is quite important
for a used car price increase that much in a short time. "
For Americans, try to get rid of their Tahoes and Explorers, for
reasons of better fuel consumption, expensive gas does not only mean
fewer buyers, but a flood of competition from other like-minded
retailers. Unless you have unlimited amounts of money for gasoline, buy
an SUV recently has proved to be a lost bet on oil prices remain low.
Depending on the brand and model, it is not unusual for light trucks
and SUVs to have lost more than $ 3000 in resale value of what a
similar vehicle with the same performance would have been worth just
last year. According to the Wall Street Journal, 36 percent of people
traded in their SUVs in May still owed on the vehicle more than it was
worth it.
Whether this price depreciation lasts depends on
where the gas prices go in the near future. Executives and industry
analysts are not planning for the gas to fall back on 2002 and do not
expect SUVs to their popularity.
"On both sides of the
margins, vehicles with good gas mileage or really poor gas mileage are
both very difficult to predict right now," said Clark. "But if you do
your cost of ownership calculation of more people doing right now-the
impact is substantial."
in the lot at the dealer. It is also makes it more difficult to unload
used gas-guzzlers. Meanwhile, hybrids are quickly to the hottest
vehicles in the market.
"Gas prices and the impact on resale
value are the number one question we are dealing with," said James
Clark, Editorial Director of Automotive Lease Guide, in an interview
with HybridCars.com. ALG monitors and forecasts trends in the residual
values of cars and trucks. Hybrid cars were first in the United States
in late 1999-used as the hybrid market is still in its infancy, making
it difficult to forecast long-term resale values for gas-electric
vehicles.
But the recent trends are revealing. "In the last
month or two, we have seen values up, ballpark of about $ 15000 for a
model of the Prius in 2005 to around $ 17000. This is quite important
for a used car price increase that much in a short time. "
For Americans, try to get rid of their Tahoes and Explorers, for
reasons of better fuel consumption, expensive gas does not only mean
fewer buyers, but a flood of competition from other like-minded
retailers. Unless you have unlimited amounts of money for gasoline, buy
an SUV recently has proved to be a lost bet on oil prices remain low.
Depending on the brand and model, it is not unusual for light trucks
and SUVs to have lost more than $ 3000 in resale value of what a
similar vehicle with the same performance would have been worth just
last year. According to the Wall Street Journal, 36 percent of people
traded in their SUVs in May still owed on the vehicle more than it was
worth it.
Whether this price depreciation lasts depends on
where the gas prices go in the near future. Executives and industry
analysts are not planning for the gas to fall back on 2002 and do not
expect SUVs to their popularity.
"On both sides of the
margins, vehicles with good gas mileage or really poor gas mileage are
both very difficult to predict right now," said Clark. "But if you do
your cost of ownership calculation of more people doing right now-the
impact is substantial."
