BIKE: SUV Resale Prices in Decline

[Jeb Boyt]

>From the Dallas Morning News:

Full-size sport utility vehicles, the one-time high-and-mighty kings of the 
road, are in a skid.

While used-car prices in general are stronger than they have been in five 
years, the average trade-in values of full-size SUVs are $700 to $1,500 
lower than a year ago – and it's the weakest segment in the industry.

High fuel prices and a well-earned reputation as gas guzzlers have cut 
deeply into big SUVs' stature. The segment has also been hurt by the age of 
many full-size SUV models and the fact that consumers today have more 
choices of SUV-like vehicles than ever.

Sales of new full-size SUVs nationally, for example, fell 15.1 percent in 
the first quarter of this year. Some of the segment's former giants suffered 
huge drops, with sales of the Chevrolet Suburban falling 29.2 percent, the 
Chevy Tahoe down 22.5 percent and the Ford Expedition plummeting 26.8 
percent.

Dealers are adjusting to the SUV decline.

Six months ago, low-mileage Ford Expedition and Chevy Tahoe SUVs commanded 
front-row spots on Subaru of Dallas' used-vehicle lot.

Today, when the dealership gets one as a trade-in, it often sends it to a 
wholesale auction – the destination for cars and trucks a dealer doesn't 
want.

"Our position is, if it's a good gas-mileage SUV, we keep it," said David 
Thomas, managing partner of Subaru of Dallas. "If it's a Suburban or an 
Expedition, we won't. I'm scared of them."


http://www.dallasnews.com/sharedcontent/dws/news/dmn/stories/042705dnbustrucks.4e43c448.html