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Consumer Action by Stacey L. Bradford (Author Archive)
5 Ways to Unload a Gas-Guzzling SUV
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 (GM), and Ford (F), 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's web site. (Prices are updated every Thursday.) Then visit a site like AutoTrader.com to 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 Motors (EBAY). By reaching millions of potential buyers, web sites like these allow individual sellers to compete directly with dealerships. Since an owner doesn't have overhead costs to worry about, he could list his SUV for less than a dealer, making his vehicle look like a bargain. And if you throw in free car shipping — a technique dealers often employ — you might be surprised at how many additional offers you get.4. 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 Carfax Vehicle 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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A word the wise! I am in the auto industry, and while many people will point you to Kelley Blue Book or other online resources, understand that those recourses do NOT buy cars, SUV's or Trucks. Right now, you can look at 'book value' at Kelley Blue Book and actually expect to get about 25% of that figure from a dealer. Many dealers are not even accepting the large SUV's and trucks as trade-in vehicles any longer due to the complete lack of interest from the buying public.
My advice? First I think gasoline at the pump is going to keep going up. I know there are some corners who think that we will return to sub $3.00 per gallon gasoline in the near future. They seem to be that same people who think we are NOT in a recession at this juncture. I say they need to go check into the Betty Ford Clinic. Second, if you have the financial capability to get out of your SUV (you probably owe more for the car than it is worth to anyone), I strongly recommend that you do that now. Oi...(Read more of this comment)
I just traded my suv I used a company called AutosAtInvoice.com they got me the car i wanted for invoice and no dealer hassle it was great just thought i would pass it on.
I'm bucking the trend... just listed my nice 49 MPG VW Diesel on cars.com because the wife needs a 'higher' vehicle. HowieG: my new quad cab long bed Toyota Tacoma vacation haul'in pickup returned 23 MPG, better than many SUVs. When you need to haul, pull, or cruise with a great view with the family it's the way to go. I won't be trading it.
howie! You are my hero! I bet a big baller like you must take all the girls out to restaraunts with pics of the food on the menu! That camry must be a chick magnet! Lucky Dawg!
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I learned my lesson back in the 70's when I bought my first car - a 1970 LTD with a 351 V8. I bought it cheap off the used car lot back then when high gas prices had people trading in their gas guzzlers the first time. The car got about 12mpg. Ever since then I always purchased fuel-efficient autos as I knew that gas prices where going to shoot up sooner or later. I got my Prius about 2 years back when summer gas prices were peaking. I'm no tree-hugger - I just hate getting ripped on the cost of gas.