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,
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.
· Choose wisely - make the decision that best fits your needs without tiring your purse strings
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