With gas prices tickling the $4 a gallon mark, new truck and SUV sales have decreased by 26 percent through the first quarter of 2008, but the new car market isn’t the only one feeling the crunch. Used truck and SUV sales have also significantly dropped off, with a corresponding drop in price.
According to U.S. News, used truck and SUV sales were down 14 percent during March and, as economics class taught us, an increase in supply — with no change in demand — will ultimately drive prices down. “Used SUV sales in March were down 14 percent nationally compared to last year, according to data compiled by CNW Marketing Research. That follows drops in used SUV sales of more than 8 percent for the first two months of the year, compared to the same months in 2007,” the AP told U.S. News. That “has sent used SUV prices plummeting, giving owners a shock when they try to trade theirs in and find out how little they can get.”
The excess inventory largely stems from people downsizing to more fuel-efficient vehicles.
Some used car dealerships aren’t even accepting large trucks or SUVs as trades. Although diesel-powered vehicles are more frugal than their gasoline counterparts, the high price of diesel fuel has equally hurt their value.
But on the flip side of the coin, if you’ve been waiting to get into a used truck SUV, now could be the perfect time to buy — aside from that price of fuel issue — as there is plenty of selection and prices are near rock bottom.
