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June 12, 2008

What’re You Gonna Do With Your SUV?

By Jen Dunnaway

Editor

It’s no secret that anyone who hasn’t yet traded in their SUV is kind of screwed right now. At over a hundred bucks a fill, these hulks are collecting dust on dealer lots and presenting a major problem for anyone trying to sell one. TTAC today quoted a dealer report declaring folks still saddled with full-size trucks and SUV’s to be "owners for life": they not only can’t give ‘em away, but in terms of trade-in value and dealer incentives, an owner can’t even pay someone to take them off their hands. On my flight back from Carlisle this weekend, I talked to a guy who’d paid around $40K a couple of years ago for a then-brand-new H3, which he recently got appraised—for 5000 bucks. I told him he should either seal it up in a time capsule to unwrap up 50 years from now as a relic from the oil-rich past, or make it a badass Death Race-style demo-derby car. What do  you think: are SUV owners soon going to be stuck selling like-new rides for scrap? Or is the current oil-bubble going to burst, bringing gas prices back down and SUV prices back up? What would you do?

Comments

josh
Jun 14, 2008 at 10:27 pm

I’d buy an H3 for $5000!
Even if gas doesn’t go down, it’ll be worth more than $5K in the 2020’s.

Dhillaz
Jun 14, 2008 at 3:59 pm

“And I think gas will go back down eventually…supply and demand.”

Demand, as we’ve seen the only way is up, and for supply: we’ve run out of decent cheap oil. I’d be very surprised if there’s a huge, easy-to-access oil reserve that no one’s found yet.

It’s no reason to panic, but the petrol SUV doesn’t have a reason to stay on the market for long…

Jeremy
Jun 14, 2008 at 4:25 am

I don’t see the big deal about suv’s, of course the gas bill’s higher, but i dont see how the money you save in gas is worth the price you’d pay for trading it in for a new car. That’s just me i guess. I’m not getting rid of my truck, no matter how high gas gets. And i think gas will go back down eventually…supply and demand.

Dhillaz
Jun 13, 2008 at 10:43 pm

Wow, I don’t have an SUV, but I’ve always wanted an Escalade. *drool*

I guess every cloud has a silver lining: I’ll get an awesome decoration for my driveway.

Oh, and by the way…the oil bubble isn’t going to burst: we’ll run out of decent oil sources, then we’re screwed since petrol/diesel cars will become useless. Have a look at China’s projected oil consumption for the next 10 years, and you’ll understand why.

Anonymous
Jun 13, 2008 at 7:34 pm

Can we contact that guy with the H3? I’ll give him 5 grand for it…

Twigg
Jun 13, 2008 at 4:19 pm

You’re a funny guy Eric

Eric
Jun 13, 2008 at 4:11 pm

Damn How come i still dont have my escalade then! I would give the LEXUS up right now for one, GAS PRICES are whatever!

Twigg
Jun 13, 2008 at 4:00 pm

We (my wife and I) just bought a used Expedition in November of last year. Even with gas prices at $4.20 and higher we still only pay an extra $20 per fill-up. If you do the math, with a 20 gallon tank, for every 10 cent hike in gas prices you pay $2.00 more per fill-up, that shouldn’t be a killer for anyone. I think the price of gas is going to cause people to re-evaluate what’s important to them in their life. You can alwaqys save money by driving less, eating out less, quitting smoking, spending less at the bar by drinking at home, cancelling your HBO, there’s a million ways. My point is that everyone thinks the world is coming to an end because gas prices are so high. The reality is that it only comes down to a matter of what’s important to you and how you spend your money.

Jason
Jun 13, 2008 at 3:20 pm

I dont exactly have an SUV, but my car is atrocious on gas. On my budget, I can either dump money into it and run it into the ground, or take a huge hit and find the cheapest econobox I can find. Im leaning towards the former.

But there may still be hope for some of you buried under your SUV. According to a cnn.com article a few days ago that I cannot find for the life of me, SUV’s are in good demand in South American where gas is still fairly cheap. I think I remember the article saying it costs about $2200 to export a vehicle. Feasible? That’s your call.

Robbie
Jun 13, 2008 at 3:04 pm

I own a 2008 jeep wrangler unlimited rubicon and spend about 120-150 a week on gas! sure its expensive but theres no way i would sell my jeep just because gas and oil is going up in price. i honestly think that nobody is gonna want to own a suv or truck or even a van in say 5 years. and if you do see one, that person will be considered to be highly “rich” to some people. gas is going dry and somebody better get off their asses and find a new gas thats better to make and take.

Ismael
Jun 13, 2008 at 11:05 am

SUV…great to read.

ihatemybike
Jun 13, 2008 at 4:00 am

If they have them paid off, they might as well keep them. It would be wise to purchase a more economical used car outright though. My Astro is doing alright at 22 mpg, but I’m thinking about picking up a motorcycle for nice days.

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