Photo by Joguldi. Licensed under Creative Commons license 2.0.
We all know that sales and values of large vehicles are slumping - just ask Nissan about their Titan pickup. But if you're driving an SUV today and really hate watching the pump rack up all those dollars each time you get gas, Kelley Blue Book researchers have some advice for you: don't sell. Sound like a bad tip? Here's the reasoning, digested from a KBB press release (available after the jump):
Even though SUV and truck values have dropped about eight percent since September (an eight percent drop usually takes between 12 and 18 months), KBB thinks that these large vehicles are "nearing their minimum price points." When winter comes, KBB expects an "uptick in buyer interest in SUVs." Therefore, keep biting the bullet at the pump and, "Don't let emotions make your decision."
Of course, the value of this advice varies depending on what large ride you've got, whether or not you really need a vehicle of that size and how much you drive. Does it make sense for you?
Press Release:
Don't Sell Your SUV; Kelley Blue Book Data Reveals Costs May Outweigh Gains
IRVINE, Calif., May 29 /PRNewswire/ -- Increasing gas prices have encouraged consumers to trade-in their SUVs for smaller, more fuel-efficient vehicles, but it is important to examine the big picture before making a final decision. According to Kelley Blue Book (http://www.kbb.com/), the leading provider of new- and used-vehicle information, the SUV market has dropped more than 8 percent since September of last year. Kelley Blue Book data reveals depreciation between three to five thousand dollars in SUVs during the past six months. While depreciation is common, eight percent is generally seen over 12 to 18 months, not six to eight. Mid-size SUVs have dropped seven percent, while large SUVs have declined 8 percent. In addition, full-size trucks have depreciated eight percent along with the entire market.
"While it might be tempting to trade-in your big SUV after spending $100 to fill its gas tank, it is important you take everything into consideration before you decide to change vehicles or you may end up spending thousands of dollars to save hundreds," said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. "Large SUVs and SUVs with four-wheel drive are nearing their minimum price points so we expect depreciation will slow, and we anticipate there will be an uptick in buyer interest in SUVs as we approach winter, contingent on regional factors and gas prices. Hanging onto your current vehicle and riding out the current gas prices could be the most economical answer."
Don't let emotions make your decision -- you might be troubled by your current gasoline costs, but costs associated with acquiring, operating and insuring a new vehicle will most likely outweigh them. Below are a few suggestions in determining whether to sell your SUV
* Is your SUV paid off? If not, be aware that you might be "upside down" on your current auto loan, owing more than it's worth
* Do the math -- look at the monthly payments for your alternative vehicle, check your credit and research all financing options
* Calculate monthly gas mileage for alternative used and new vehicles. Miles-per-gallon information and fuel-tank capacities are available on http://www.kbb.com/
* Choose wisely -- make the decision that best fits your needs without tiring your purse strings
About Kelley Blue Book (http://www.kbb.com/sitemap)
Since 1926, Kelley Blue Book, The Trusted Resource(R), has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence. The company's top-rated Web site, kbb.com, provides the most up-to-date pricing and values, including the New Car Blue Book(R) Value, which reveals what people actually are paying for new cars. The company also reports vehicle pricing and values via products and services, including software products and the famous Blue Book(R) Official Guide. Kbb.com is rated the No. 1 automotive information site by Nielsen//NetRatings and the most visited auto site by J.D. Power and Associates nine years in a row. No other medium reaches more in-market vehicle shoppers than kbb.com; nearly one in every three American car buyers performs their research on kbb.com.
[Source: Kelley Blue Book]