BySTACEY L. BRADFORD
PAYING $100 TO fill up the tank of an SUV is enough to make any car owner want to unload their gas guzzler for something more fuel-efficient.
"The quick run-up in fuel prices really shocked the consumer and led to some knee-jerk reactions that 'I have to get rid of that SUV,'" says Jack Nerad, executive editorial director for Kelley Blue Book. Auto web site AutoTrader.com reports that over the past year the number of SUVs listed for sale on its site has jumped 18%. That excess inventory means SUV owners will meet some stiff competition when it comes time to sell.
Another factor working against them: auto maker incentives. After enduring a precipitous decline in sales of SUVs, trucks and vans, many car makers, including Chrysler, General Motors, and Ford, are offering thousands of dollars in cash incentives to those who buy a new SUV. Do the math and buying a brand-new SUV (with plenty of the latest and greatest bells and whistles) costs nearly the same amount as a used 2006 or 2007 model, says Mark Scott, a spokesman for AutoTrader.com.
It may sound like a bleak proposition, but don't panic yet. Luckily, there will always be drivers think large families and folks who need extra cargo space for work who want an SUV. "[Sellers] just need to be realistic about the price they're going to get," says AutoTrader.com's Scott.
If you manage to get a buyer to bite, be prepared to get a lot less for your SUV than you originally expected. Over the past six months, used-SUV values fell 10%, a rate of depreciation that traditionally occurs over 12 to 18 months, says Nerad. Also, get ready to exhibit some patience. According to a survey by CNW Marketing Research, in April the average SUV took more than 66 days to sell, compared with 49 days a year earlier.
Here are five ways to help you get the best price for your gas guzzler and expedite the process.
1. Be Your Own Salesperson
Owners almost always get a better price for their car when they sell it on their own vs. trading it in, says Robyn Eckard, a spokeswoman for Kelley Blue Book. This is especially true when it comes to SUVs. Dealers already have a hard time getting rid of the used SUVs clogging up their lots. In fact, the market is so bad that some dealerships won't even accept SUVs as trade-ins anymore, says Eckard. Even if a dealer is willing to take an SUV trade-in, they'll likely offer the owner a price quote that's well below market value in an effort to preserve their own profit margins.
2. Price It Right
The fact that used-SUV prices are falling fast is not lost on potential buyers. So when selling an SUV, make sure to check its current value on
Kelley Blue Book'sweb site. (Prices are updated every Thursday.) Then visit a site like
AutoTrader.comto see what other local sellers are asking for. Just be aware that many people who list their vehicles don't actually need to sell them. These folks often ask for a relatively high price and only part with their trucks if and when they get what they want. For owners desperate to sell their SUV quickly, consider pricing it $100 to $200 less than the cheapest comparable car in the region, says Howard Polirer, industry relations director for AutoTrader.com.
3. Advertise Online
Sixty one percent of used-car buyers start their search online, according to AutoTrader.com. So it's critical that you list your SUV on a web site like AutoTrader.com,
Carsdirect.com,
Cars.com, or
eBay Motors4. Provide Plenty of Details
To help your ad gain more traction, include as many details about your SUV as possible. Autotrader.com recommends posting at least 25 pictures that highlight the vehicle's best features, including shots of the cargo space, fold-down seats and its general condition. And as you should with any car listing, include photos of any scratches or dings, as well as the odometer showing the SUV's mileage.
5. Build Credibility
Finally, work on building credibility with prospective buyers. Provide them with all maintenance records and a
CarfaxVehicle History Report. The vehicle history report, which costs $25, details factors that every buyer should know, including whether or not the SUV was ever in a serious accident or flood. Also, consider paying an independent mechanic to inspect the car (it should cost about $150) so buyers feel confident they aren't getting a lemon.
One last piece of advice: Don't get so caught up with the price at the pump that you're willing to sell your SUV at any price. Make sure to ask for enough to cover any outstanding auto loans and the cost of acquiring a new car. If that's not feasible, it might make more sense to keep your existing vehicle and find ways to drive it more efficiently. For help figuring out whether it makes sense to keep your old car or trade it in for a more fuel-efficient model, see our calculator.
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