Soaring Fuel Prices Push Down Value Of SUVs And Pickup Trucks - Is It The End Of The Big Vehicle Era
They used to be the cars of choice for many Americans.
They were big, sporty and powerful: distinct trademarks of SUVs and pickup trucks that made them appealing for so long.
But because of the seemingly unending rise of oil prices, the time of SUVs and pickup trucks under the spotlight may have passed.
At a time when most Americans are affected by the economic recession, $75-$80 worth of fuel expenses per trip to the gas station isn't attractive at all.
It is no wonder that the value of SUVs and pickup trucks have plunged.
For the month of April 2008 alone, sales for SUVs and pickup trucks fell by 32.
3 percent compared to last year's, according to auto industry analysts and car dealers.
Automakers are already forced to come up with all sorts of gimmicks just to lure consumers to purchase these big vehicles.
Cash rebate incentives, for instance, have reached up to a staggering $4,000.
But despite these enticing offers, most car buyers aren't taking the bait.
They simply aren't interested.
Moreover, owners of SUVs and pickup trucks are desperately trying to get rid of their gas-guzzling cars even if it means selling them at a loss.
With gas prices bordering on $4.
00 per gallon (and with the expectation that oil prices will continue to rise), SUVs and pickup trucks have simply become too expensive to use.
More and more people are moving towards smaller and more fuel-efficient cars.
Practicality, not engine or performance specs, is now a major consideration for car buyers.
MPG (miles per gallon) is now the more important acronym over HP (horsepower).
It is no wonder sales of smaller compact vehicles have risen by 18.
6 percent at the time when the value of SUVs and pickup trucks have dropped.
The emergence of crossovers-vehicles that offer the benefits of SUVs but offer the handling characteristics and the economy of cars-further diminishes the value of SUVs and pickup trucks.
If a car buyer wanted decent space for the family, that car buyer would simply choose a crossover vehicle over the SUV or the pickup truck because a crossover's fuel efficiency competes with the efficiency of many standard compacts out there.
Times are different nowadays and people's preferences have changed drastically, thanks to rising oil prices and the uncertainty regarding the economy.
George Hoffer, automotive industry expert and professor at Virginia Commonwealth University said, "It (SUV) is an irrational vehicle.
It'll never comeback.
" As unwanted as SUVs and pick up trucks may have become, Hoffer's sentiments are arguable.
But at least as far as most car buyers are concerned, the era of SUVs and pickup trucks may very well be gone.
They were big, sporty and powerful: distinct trademarks of SUVs and pickup trucks that made them appealing for so long.
But because of the seemingly unending rise of oil prices, the time of SUVs and pickup trucks under the spotlight may have passed.
At a time when most Americans are affected by the economic recession, $75-$80 worth of fuel expenses per trip to the gas station isn't attractive at all.
It is no wonder that the value of SUVs and pickup trucks have plunged.
For the month of April 2008 alone, sales for SUVs and pickup trucks fell by 32.
3 percent compared to last year's, according to auto industry analysts and car dealers.
Automakers are already forced to come up with all sorts of gimmicks just to lure consumers to purchase these big vehicles.
Cash rebate incentives, for instance, have reached up to a staggering $4,000.
But despite these enticing offers, most car buyers aren't taking the bait.
They simply aren't interested.
Moreover, owners of SUVs and pickup trucks are desperately trying to get rid of their gas-guzzling cars even if it means selling them at a loss.
With gas prices bordering on $4.
00 per gallon (and with the expectation that oil prices will continue to rise), SUVs and pickup trucks have simply become too expensive to use.
More and more people are moving towards smaller and more fuel-efficient cars.
Practicality, not engine or performance specs, is now a major consideration for car buyers.
MPG (miles per gallon) is now the more important acronym over HP (horsepower).
It is no wonder sales of smaller compact vehicles have risen by 18.
6 percent at the time when the value of SUVs and pickup trucks have dropped.
The emergence of crossovers-vehicles that offer the benefits of SUVs but offer the handling characteristics and the economy of cars-further diminishes the value of SUVs and pickup trucks.
If a car buyer wanted decent space for the family, that car buyer would simply choose a crossover vehicle over the SUV or the pickup truck because a crossover's fuel efficiency competes with the efficiency of many standard compacts out there.
Times are different nowadays and people's preferences have changed drastically, thanks to rising oil prices and the uncertainty regarding the economy.
George Hoffer, automotive industry expert and professor at Virginia Commonwealth University said, "It (SUV) is an irrational vehicle.
It'll never comeback.
" As unwanted as SUVs and pick up trucks may have become, Hoffer's sentiments are arguable.
But at least as far as most car buyers are concerned, the era of SUVs and pickup trucks may very well be gone.