Have gas prices already started affecting SUV/Truck pricing?

[Drew Dowdell]

Have gas prices already started affecting used SUV/Truck pricing?

March 6th 2011 - Drew Dowdell - CheersandGears.com

According to GasBuddy.com, the national average for gasoline has spiked from $3.12 per gallon to $3.49 per gallon between February 16th and March 6th. As some of you know, I keep an eye on prices for used Chevrolet Avalanches and Oldsmobile Bravadas. I am already noticing a drop in pricing on just these two models. For example, an '05 Avalanche with 63,000 miles and leather near me has an asking price of just $17,999. Six months ago, an Avalanche with that equipment would be over $20k used. Higher mileage examples have fallen from the $17k range to the $13k - $14 range.

This 2006 Ford Expedition XLT with 63,000 miles is down to $15,954

Early reports are indicating that consumers are reacting much quicker than before and are already pulling back their spending due to high gasoline prices.

So what have you observed in you local area?

[William Maley]

2007 Chevrolet Trailblazer with 69,990 miles, yours for $17990

[Camino LS6]

Makes me wonder about other segments, are people scared about their fuel cost or the economy in general because of the fuel cost?

[daves87rs]

Yes and no. Trucks still cost an arm and a leg here-no matter what it is.

Granted, I just saw a 2003 Cavalier w/121k miles for 8995, and a 97 Neon w/102k for 5 grand.....that's just nuts!

[A Horse With No Name]

Around here, people need trucks...but the last time gas prices went ape, you couldn't give them away.

[SAmadei]

Around here, people need trucks...but the last time gas prices went ape, you couldn't give them away.

Its a knee-jerk reaction. People are irrational beings. They always come back to their trucks (or large vehicles) after they realize that the gas savings are not worth the compromises.

[ocnblu]

[Robert Hall]

Around here, people need trucks...but the last time gas prices went ape, you couldn't give them away.

Its a knee-jerk reaction. People are irrational beings. They always come back to their trucks (or large vehicles) after they realize that the gas savings are not worth the compromises.

Yeah...some buy inefficient trucks or SUVs when gas is cheap, then scurry around to unload them on tiny FWD cars when gas prices spike, then go back to trucks or SUVs when gas prices subside. Then repeat. It's an expensive cycle, I would think. I've stuck w/ my 18mpg SUV through times of cheap gas, through times of high gas prices. The price variations don't bother me--maybe an extra $10-30 a week to fill up...not a big deal to me, esp. with a paid-off vehicle.

Edited March 8, 2011 by Cubical-aka-Moltar

[ocnblu]

Not that I'm being singled out, there are others in my state of mind right now, but here's my story: I made less money in 2010 than I did in 2009, didn't break the $50k barrier last year. Fuel usage has been appalling with this 2010 Colorado, compared to my 2004 Colorado, and well under the 17 mpg EPA city rating. Internet research shows I should be $1k to the good as far as trade-in value v. payoff. Perhaps there is a better match for my budget, while adhering to my concerns for practicality, affordability, style, fun and resale. Is it wrong to take a closer look at budgetary concerns in this economy?

[Camino LS6]

There might be something to my earlier question: I saw on the news yesterday that consumer confidence has dropped 30% since the spike in fuel costs started.

[z28luvr01]

Not that I'm being singled out, there are others in my state of mind right now, but here's my story: I made less money in 2010 than I did in 2009, didn't break the $50k barrier last year. Fuel usage has been appalling with this 2010 Colorado, compared to my 2004 Colorado, and well under the 17 mpg EPA city rating. Internet research shows I should be $1k to the good as far as trade-in value v. payoff. Perhaps there is a better match for my budget, while adhering to my concerns for practicality, affordability, style, fun and resale. Is it wrong to take a closer look at budgetary concerns in this economy?

Well, you had the manual in the '04 vs the auto in the '10. That and the bigger displacement probably account for most of your mpg loss. Plus it's barely broken in.

If you can swing it, you're better off holding onto the truck and getting a really cheap penalty-box of a beater to save on fuel costs. You can also do a couple of bolt-ons for the Colorado to eke out a couple more MPGs.

[daves87rs]

Not that I'm being singled out, there are others in my state of mind right now, but here's my story: I made less money in 2010 than I did in 2009, didn't break the $50k barrier last year. Fuel usage has been appalling with this 2010 Colorado, compared to my 2004 Colorado, and well under the 17 mpg EPA city rating. Internet research shows I should be $1k to the good as far as trade-in value v. payoff. Perhaps there is a better match for my budget, while adhering to my concerns for practicality, affordability, style, fun and resale. Is it wrong to take a closer look at budgetary concerns in this economy?

Just hang on the it ocn....gotta break in more too..should help a bit.

If prices really do get that out of hand, II'd just give the damn truck back anyways....

A nice bike might just be better at that point !

I'm in the rare postion of having three fuel sipping compacts that are paid for. But-Gas is not going to stop me from getting a truck (like yours) if I want it.

Worst case-you could pick up an old escort or Cavalier for the daily duties. My neighbor just picked up a 98 ZX2 with 130k for 750 so he could park his silvy if he needs to.

[caddycruiser]

Even on the large crossover side of things, we've been talking about at work in the past 2 days (Acura dealer) about pre-owned/certified MDX's we have in stock and will continue to get as trade ins, and how "remember when the gas prices blew up last time? The value of these dropped a couple grand immediately...we have to plan for it". Interesting to hear, as it remains true even on the crossover side of things.

Haven't seen it yet, as right now people are only finally once again even mentioning "I want to trade in my truck...more efficient", but waiting to see how it turns, if it does before prices go back down.

[Satty]

Crazy cycle, people buy gas guzzlers when gas is cheap, then freak out when it spikes and trade them off, then gas prices level off, which makes it seem cheap even though its significantly more than it had been so they grab another guzzlers. Then gas spikes again. It's pretty predictable, when gas holds steady around $3.75, people will buy trucks again until it spikes to $5, then when it settles around $4.50, more trucks! Sheep are sheep.

[vonVeezelsnider]

If gas prices make the Fleetwood I eventually buy cheaper I don't think I could be happier...

[Z-06]

Depreciation is a bigger loss than loss of purchasing power by the increased cost of gasoline.

[GMTruckGuy74]

I've stuck w/ my 18mpg SUV through times of cheap gas, through times of high gas prices. The price variations don't bother me--maybe an extra $10-30 a week to fill up...not a big deal to me, esp. with a paid-off vehicle.

I can't fathom the idea of sacrificing my comfort and driving desires because of added costs at this time. I wish my SUV was paid-off (only had the loan one year so far, so no light at the end of that tunnel yet), but there's no way I can downgrade to a car as my daily driver and still be happy with my purchase.

However, I have a couple of things in my favor that some, like ocnblu, may not - (1) the Envoy is a 2nd vehicle that does not have to be driven daily because, (2) the wife and I commute together to work in our fuel efficient car. The G6 is the absolute smallest vehicle I'm comfortable with (though she wanted a 4 cyl in '08 when we were car shopping, I'm glad to have the 3500 V6 <she was unhappy in all of the 4 cyl vehicles she test drove>). Maybe a minivan would be a better fuel efficient vehicle over the Envoy, but there are no minivans that I'm happy with. Going places with all of us (5 in total) and taking the G6 is tough; the Envoy is better for weekend driving duty (roomier, though uses more gas).

[Camino LS6]

Fuel economy will never be the deciding factor in my purchase decisions - no matter the price of gasoline.

[Satty]

It's also nearly the time of year an inexpensive motorcycle will be a perfect commuter. I know a few people who have gone that route, since they need the truck for hauling 2-3 days a week, they get a bike for the rest of the week.

[Camino LS6]

It's also nearly the time of year an inexpensive motorcycle will be a perfect commuter. I know a few people who have gone that route, since they need the truck for hauling 2-3 days a week, they get a bike for the rest of the week.

Sensible option.

I've always tried to keep my distance from bikes though - I'm afraid I might like them too much.

[Satty]

My brother in law loves his trucks, in the last decade he's had some pretty sweet ones, even bought an old Accord for a commuter to justify keeping the F-150, but now its almost impossible to separate him from his Harley-Davidson Sportster. My friend Brandon has moved from being the biggest Mustang afficianado I've ever met to being a bike addict. He has a Harley and a Suzuki. So yeah, they can be addicting.

[Camino LS6]

My brother in law loves his trucks, in the last decade he's had some pretty sweet ones, even bought an old Accord for a commuter to justify keeping the F-150, but now its almost impossible to separate him from his Harley-Davidson Sportster. My friend Brandon has moved from being the biggest Mustang afficianado I've ever met to being a bike addict. He has a Harley and a Suzuki. So yeah, they can be addicting.

Exactly what worries me. That, and a need for speed...

[ocnblu]

Well, $50 a week to fill your tank translates into $200 a month, most months. With a $330 loan payment, plus gasoline and insurance at $950 every six months... it adds up when you're on your own. That is my fault.

The "Cavalier II", as Satty so cavalierly puts it in another thread, was fine for driving... I averaged 26.4 mpg over the time I had it, which was not bad but not up to the estimates. What it fell down on was utility. I may not need a truck for hauling very often, but the Cobalt's tiny trunk opening made it difficult to even get my sleeping bag in the trunk, let alone the rest of my camping stuff. Home improvement store projects were out of the question.

So yes, people might need to re-evaluate their needs from time to time. A hatchback is a utilitarian vehicle that can pull limited double duty... maybe that's enough.

[Drew Dowdell]

What about an HHR then. Manual, utility, fuel economy, GM, good zip around town, and you can get them cheap.

[daves87rs]

What olds said...

[pow]

There's this gas station next to a freeway on-ramp I pass coming from home, and I've watched it daily as the prices steadily rose. That's tempered my driving habits a bit each time I get on the freeway.

Today I stuck to the speed limit, refrained from unnecessary acceleration, and averaged 33 mpg over 30 miles. Usually I get 27 mpg on that same route. I probably spent an extra two minutes in the car, but hey, I saved 85 cents... hope it adds up.

Edited March 9, 2011 by pow

[pow]

Well, $50 a week to fill your tank translates into $200 a month, most months. With a $330 loan payment, plus gasoline and insurance at $950 every six months... it adds up when you're on your own. That is my fault.

The "Cavalier II", as Satty so cavalierly puts it in another thread, was fine for driving... I averaged 26.4 mpg over the time I had it, which was not bad but not up to the estimates. What it fell down on was utility. I may not need a truck for hauling very often, but the Cobalt's tiny trunk opening made it difficult to even get my sleeping bag in the trunk, let alone the rest of my camping stuff. Home improvement store projects were out of the question.

So yes, people might need to re-evaluate their needs from time to time. A hatchback is a utilitarian vehicle that can pull limited double duty... maybe that's enough.

Forte 5-door?

[§carlet §wordfish]

What about an HHR then. Manual, utility, fuel economy, GM, good zip around town, and you can get them cheap.

I wish we hadn't.

[Drew Dowdell]

hadn't what?

[§carlet §wordfish]

Gotten the HHR. My mom bought it on an impulse to replace our Bravada and we've all grown to dislike it.

[vonVeezelsnider]

Gotten the HHR. My mom bought it on an impulse to replace our Bravada and we've all grown to dislike it.

Rattle Rattle Rattle Plastic Plastic Plastic?

That's what I didn't like about the HHR/Cobalt

[§carlet §wordfish]

Gotten the HHR. My mom bought it on an impulse to replace our Bravada and we've all grown to dislike it.

Rattle Rattle Rattle Plastic Plastic Plastic?

That's what I didn't like about the HHR/Cobalt

yeeeeessssss

Every time you hit a reasonably bump or dip the giant Fisher-Price plastic shelf in the back rattles and crashes and makes the bump seem twice as jarring as it would normally feel.

Not to mention we've had to replace the steering column and now the switch that activates the hatch latch doesn't work, negating most of the utility my mom got the stupid car for.

And it gets disappointing fuel economy. And I can't get comfortable in any of the seats. And it's ugly.

[vonVeezelsnider]

Gotten the HHR. My mom bought it on an impulse to replace our Bravada and we've all grown to dislike it.

Rattle Rattle Rattle Plastic Plastic Plastic?

That's what I didn't like about the HHR/Cobalt

yeeeeessssss

Every time you hit a reasonably bump or dip the giant Fisher-Price plastic shelf in the back rattles and crashes and makes the bump seem twice as jarring as it would normally feel.

Not to mention we've had to replace the steering column and now the switch that activates the hatch latch doesn't work, negating most of the utility my mom got the stupid car for.

And it gets disappointing fuel economy. And I can't get comfortable in any of the seats. And it's ugly.

It's funny you should say... after a while of ownership the plastic shelf in the Malibu Maxx does the same thing. When the weather gets better I'm going to use adhesive foam and form a bodge job to stop the rattling. Also, the Maxx is on ISS #3

[Cory Wolfe]

Well, $50 a week to fill your tank translates into $200 a month, most months. With a $330 loan payment, plus gasoline and insurance at $950 every six months... it adds up when you're on your own. That is my fault.

The "Cavalier II", as Satty so cavalierly puts it in another thread, was fine for driving... I averaged 26.4 mpg over the time I had it, which was not bad but not up to the estimates. What it fell down on was utility. I may not need a truck for hauling very often, but the Cobalt's tiny trunk opening made it difficult to even get my sleeping bag in the trunk, let alone the rest of my camping stuff. Home improvement store projects were out of the question.

So yes, people might need to re-evaluate their needs from time to time. A hatchback is a utilitarian vehicle that can pull limited double duty... maybe that's enough.

That's odd considering you also had the 5spd. My automatic Cobalt was always redeeming itself with its gas mileage. I usually averaged about 32 day to day... and got as high as 42 mpg on the highway, as you may recall.

[ocnblu]

Well, maybe it was the type of driving I do day-to-day. Very stop-n-go for most of the route, mixed with a hill to climb early in the route when the engine is cold and in richer fuel mix mode. I imagine you have more rural, 45 mph roads with fewer stops to get from home into town. Of course, I could be wrong.

Yes, highway trips always jumped my average considerably, but I don't do enough of that to make a lasting effect.

Edited March 11, 2011 by ocnblu