SUV sales are taking a major hit, and that reality is showing up in the resale market. SUV sales went through the roof in the 90s, creating profits and sunny days for American car makers. The bottom has fallen out this year, though. Sales of large SUVs are down 26%, which follows a drop of 19% last year. Overall, SUV sales are down 19% this year.
Changing tastes are one factor, but the price of gas obviously doesn’t help. That doesn’t just hurt the sale of new SUvs, it also creates a nightmare for dealers who are stuck with used vehicles.
Used car buyers are generally not as wealthy as new car buyers, so the impact of higher gas prices has even more impact on them than on new buyers. That means that dealers have lots full of vehicles they can’t sell, prices are in a freefall, and people trying to make trade-ins have vehicles that are worth less than the loans on them.