SUVs are still hit despite high gas needs
by EVANDER KLUM
Surprisingly, even thou gasoline prices are soaring to above $3 per gallon, the American��s just cant stop popping the gas guzzling SUVs.
Although not as strong as its sales way back on the first years of Sport Utility vehicles in 1990, it is far from being weak, particularly in the used-car industry. It only means that because Americans are big, they also yearn for behemoths to which they can fit comfortably in.
Hearst Business Media��s Black Book division, after tracking used-car pricing and resale values, says that the average resale values of SUVs after falling in 2006, is bouncing back on good track.
Data from Black Book also says that the residual values (the worth of the vehicle after three years of leasing and ownership) of Large SUVs boosted to 48.6% of their original price for 2007. Last year, it was only 46%. The current sale is just like the resale value of midsize cars and compact SUVs with less fuel needs.
According to Ricky Beggs, vice-president and managing editor for Black book, many large SUV owners reclaimed their Chevy Tahoes and Ford Expeditions after dumping them two or three years ago when gasoline prices are at their peak. They realized that they still want the comfort and space the vehicles had once gave them. That��s why the consumers are now buying them in the used-car market. "People don't like the high gas prices," Beggs says. "But they have decided that they need the vehicle."
Compared to buying a new car, used-car buying spare consumers from premiums entangled to the new vehicle. Consumers can save much. Also, car makers and dealers also placed big investments to make previously owned and leased vehicles look like a brand new one carrying cheaper price tags.
Some crossovers have attempted to take the place of huge SUVs. However, though these hefty vehicles can only go about 15 miles per gallon, their replacements were also not that good.
For example, the 2008 Chevrolet Tahoe, a four-wheel drive SUV gets 16 miles per gallon. On the other hand, Honda Motors�� (the Acura division makes original Acura brake booster) crossover, the all-wheel drive Pilot only gets 17 miles per gallon according to the environmental Protection Agency. Let��s speak the money language, to drive the bigger Tahoe for one year considering the fuel price to $3.10 per gallon, you will be spending $2,906. The smaller Pilot requires only $170 less.
If we will also refer to oil conservation, the Tahoe will burn a total of 21 barrels while the Honda, 20 barrels.
The point is, Detroit is not creating thrifty behemoths but there is no vehicle good enough to offer their space.
