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Gas Prices Cause Your SUV To Depreciate Faster

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.