You have probably noticed the large number of affordable SUVs on dealer’s lots of late. The prices on some of these vehicles might make you do a double take and wonder what kind of problems the thing has. Most of them are so cheap because of the price at the gas pump.
It may not be a surprise that gas guzzlers lose popularity when gas is expensive, but the exact impact is a bit alarming to SUV owners. When gas rises a single dollar (like last year) large SUVs see their value stumble by 13 percent. You might be surprised at what constitutes a large SUV. It isn’t just your Ford Excursions anymore. You nearly have to buy something small like a Ford Escape or Honda CRV to avoid the depreciation hit.
The value hit does not hold true for large sedans. Before you buy a new SUV, you need to keep this hidden cost of ownership in mind, especially if you need a subprime car loan. It may take five years of ownership to find your loan and your vehicle’s value becoming equal.