Return of the Large SUV

[Chuck]

...in the used car market, but still is not like the SUV boom of the 90s - and neither is the profits

David Welch – BusinessWeek – Nov. 28, 2007

Observation: They also outsell used Civics and Camrys -- Ed.

With oil prices flirting with $100 a barrel, who in the world would want a large, gas-guzzling sport-utility vehicle?

Quite a lot of people, as it turns out. In the used-car market, at least, demand for midsize and large SUVs is surprisingly strong. While still far below the boom years of the late 1990s and the early part of this decade, it's proof consumers' yen for boulevard behemoths isn't dead.

Data from Black Book, a division of Hearst Business Media which tracks used-car pricing and resale values, indicate the average resale values for large SUVs are bouncing back from their 2006 low, says Ricky Beggs, Black Book's vice-president and managing editor.

Large SUV residual values (what they're worth after three years of lease or ownership) jumped to 48.6% of their original sale price this year, compared with less than 46% last year. That's about the same resale value as midsize cars and compact SUVs… [Read More]

[johnf514]

Ugh - just what we need - more justification for HugeUVs.

Enjoy being raped in the wallet when gas flirts with $5/gal.

[phoebeisis]

I'm very suspicious of the claim that sale prices are up. No doubt that big SUVs will stay on the road if they still run, but prices up!!??
I've followed the prices of used Suburbans very closely(on ebay and locally),and the prices are down-they are lower than they were in the immediate post Katrina period.
My suspicion is that this group that "follows" the prices is actually a trade group-SHILL-for used car dealers.
I recently bought a 1998 Suburban-everything works,190,000 miles-recent trans,and AC rebuilds-for $2900.This is a fairly typical price. Any of the 96-99's with 100,000 miles or more can be bought for <$5000(these vehicles sold-actual price- for >$30,000 new).
Folks will buy them because they are cheap-.No one is paying anything for used Suburbans.These guys are shills for the used car dealers.A used POS Taurus will sell for the same price-same miles-as a Suburban.
You can sell any car that runs(especially if the AC works), but Suburbans aren't making a comeback.They have a HUGE backlog of used Suburbans.This is probably a scam to drive the price up.
Charlie

PS One way they can "fox" these numbers is by ignoring the fact that in 2003 sale prices of SUVs were probably higher than they were in 2004,since folks were starting to see the handwriting on the wall in respect to gas prices.The war was starting to go south in 2004,and gas prices were going to go up as the mideast became less stable.
Another way to cook the numbers is to use Residual Value as a marker for "what I can actually get for this gas guzzler." They used residual values, not actual resale price.
Dealers lie to everyone but the sales tax collectors about what they actually sold a vehicle for.They have absolutely zero motivation to not exaggerate how much they actually sell vehicles for.
There is demand because they are dirt cheap.They also don't say jack about what Suburbans older than 3 years sell for.The vast majority of Suburbans are older than 3 years,and they are very, very tough sells.Ask anyone who has traded one in.

[shifty35]

I like the comparison of the Pilot to a Tahoe. Not like the Pilot is small, but I guess they claim it's a "crossover"? Yeah, right.

[BailOut]

A 2002 Suburban sat on the road near our neighborhood earlier this year with a sign in the windshield. It was listed for $8,900.

After more than a month it went down to $6,000.

After two more weeks it went down to $4,500.

After a few more weeks it went down to $3,300.

After a while it went down to $1,900.

Then it went away. I don't know if it finally sold at that price or if the seller just gave up.

[phoebeisis]

Brian,
My experience watching Suburbans/Tahoes etc is much closer to yours. I see a few on every lot,and they stay there a long time.
Your gas is really expensive,right-maybe $3.35 or so?It is $2.99 around here-New Orleans.
When I first bought my 98-the tank was almost empty- $111 and 38 gallons later, I can assure you Suburbans aren't flying off the lots.You can actually have a $150 fillup(44 gallon tank).I fill up at 120 miles-roughly 8 gallons and $24.
The article sure sounded like someone shilling for the used car dealers who want to dump their gas guzzlers.
Folks buy the old ones because they are cheaper, but much more useful than a pickup.A really beat up POS pickup sells for more than a Suburban.Suburbans sell for about what a used Taurus sells for.You can sell any car that runs, if the price is low enough.
Charlie

[laurieaw]

Originally Posted by BailOut

A 2002 Suburban sat on the road near our neighborhood earlier this year with a sign in the windshield. It was listed for $8,900.

After more than a month it went down to $6,000.

After two more weeks it went down to $4,500.

After a few more weeks it went down to $3,300.

After a while it went down to $1,900.

Then it went away. I don't know if it finally sold at that price or if the seller just gave up.

this makes me smile