After a wave of surging gas prices rolled across the U.S. in the past weeks, many SUV owners are considering downsizing to more fuel efficient – and economic – vehicles, the Arkansas Democrat Gazette reported.
And with motorists looking for more than 15 miles to the gallon, automakers are feeling the impact, as well.
General Motors and Ford have seen sales of the larger SUVs tumble in the past year. Across the country, car dealerships are brimming with SUV trade-ins.
Now, car owners are finding that their SUVs are depreciating rapidly after automakers’ discounts on new models caused the value of older ones to drop, according to the report.
The mammoth 2004 Ford Expedition is worth nearly 10 percent, or $2,400, less than it was at the beginning of the year. And the 2004 Hummer H2 has decreased $2,700 in value, a loss of 6.5 percent.
According to Kelly Blue Book, gas prices have either changed the minds of or strongly influenced nearly 60 percent of car buyers, the report said. That’s a 13 percent increase from one month ago and the largest jump on record.