For the first time in quite a while, the used truck and SUV market is experiencing a slight uptick in used vehicle values.
With the recent, every so slight, downward adjustment in gasoline prices, the truck and SUV used car values are showing a bit of a recovery. Used Car Cincinnati Dealers are reporting higher prices at the local auctions for the SUVs and trucks. West Coast Dealers and East Coast Dealers alike are experiencing similar trends. This is music to many of the local dealers that are flooded with trade requests for customers wanting to rid themselves of these gas guzzlers.
Even though customers are anxious to move onto smaller, more fuel effecient models, trading them out of the SUV ot truck they may have is very difficult. The local consumer is amazed at how much their vehicle has depreciated.
This is supply and demand working very much against this particular segment of the automotive market.
It will be interesting to see as the summer progresses if the gas prices continue to drop and how much of an effect it will have on this segment.
Saturday, July 26, 2008
New data shows used SUVs, pickup trucks declining in value as gas prices rise
Publish date: Jul 24, 2008
According to the most recent AuctionNet data released by the NADA Used Car Guide, a major market shift driven by high fuel costs and low consumer confidence has resulted in a declining average wholesale price of used sport utility vehicles (SUVs), pickup trucks, crossover utility vehicles (CUVs) and vans. The results, which are representative of the second quarter 2008, also show that used passenger car prices have increased during the same time period.
"Fuel prices continue to be the dominant factor in resale values," says Terrence W. Wynne, director of editorial and data services for the NADA Used Car Guide.
"Within NADA sub segments, we estimate that for every $1 increase in gas, large pickups decline in value by $2,200, on average," he adds. "By contrast, for intermediate compact cars, a $1 increase in fuel costs lifts resale prices by an estimated $980. These estimates do vary on younger and older vehicles."
The data reflects a continuing shift in demand by consumers and automobile dealers to more fuel-efficient vehicles as gas prices climb and consumer confidence falls.
Used pickup truck and SUV prices led the declines, with wholesale prices falling 11.2 and 9.6 percent respectively on 1-to-5 year old vehicles. They were followed by CUVs and vans, with values falling 3.8 and 3.0 percent respectively.
Used passenger cars were the only segment showing price gains, up 3.5 percent, driven largely by strong demand in the compact and midsize segments.
As a result, the $3,500 price premium that SUVs and pickup trucks have historically held over passenger cars has diminished significantly. Pickup truck prices have fallen to levels nearly equal to passenger cars, while the gap is closing between SUVs and cars.
The median age of SUVs for sale at auctions increased by more than a year to 42 months from 29 months in the April, May and June quarter compared to the first three months of the year, indicating a continued migration out of this segment and more consumers trading in older SUVs.
Wynne pointed out that the NADA Used Car Guide is responding by making "fairly aggressive" devaluations of SUVs and pickup trucks through the end of this year. "It is evident that this is a long-term depreciation trend as opposed to volatile, near-term price behavior," he says.
For more information about NADA and its used car guide, visit the group's Web site.
According to the most recent AuctionNet data released by the NADA Used Car Guide, a major market shift driven by high fuel costs and low consumer confidence has resulted in a declining average wholesale price of used sport utility vehicles (SUVs), pickup trucks, crossover utility vehicles (CUVs) and vans. The results, which are representative of the second quarter 2008, also show that used passenger car prices have increased during the same time period.
"Fuel prices continue to be the dominant factor in resale values," says Terrence W. Wynne, director of editorial and data services for the NADA Used Car Guide.
"Within NADA sub segments, we estimate that for every $1 increase in gas, large pickups decline in value by $2,200, on average," he adds. "By contrast, for intermediate compact cars, a $1 increase in fuel costs lifts resale prices by an estimated $980. These estimates do vary on younger and older vehicles."
The data reflects a continuing shift in demand by consumers and automobile dealers to more fuel-efficient vehicles as gas prices climb and consumer confidence falls.
Used pickup truck and SUV prices led the declines, with wholesale prices falling 11.2 and 9.6 percent respectively on 1-to-5 year old vehicles. They were followed by CUVs and vans, with values falling 3.8 and 3.0 percent respectively.
Used passenger cars were the only segment showing price gains, up 3.5 percent, driven largely by strong demand in the compact and midsize segments.
As a result, the $3,500 price premium that SUVs and pickup trucks have historically held over passenger cars has diminished significantly. Pickup truck prices have fallen to levels nearly equal to passenger cars, while the gap is closing between SUVs and cars.
The median age of SUVs for sale at auctions increased by more than a year to 42 months from 29 months in the April, May and June quarter compared to the first three months of the year, indicating a continued migration out of this segment and more consumers trading in older SUVs.
Wynne pointed out that the NADA Used Car Guide is responding by making "fairly aggressive" devaluations of SUVs and pickup trucks through the end of this year. "It is evident that this is a long-term depreciation trend as opposed to volatile, near-term price behavior," he says.
For more information about NADA and its used car guide, visit the group's Web site.
Used Car Loans - A Luxury You Can Afford
07.26.08 (12:32 am)
You dream of owning a car but find impossible to purchase it. If that is the state you find yourself in then used car loans can help you own a car. Having a car is now not the privilege of the elitist any more. With the help of used car loans it has become an option that everyone can avail.
Used Car Loans as the name suggests are loans offered to people who want to buy second hand or used cars but cannot afford it. The reason may vary from person to person but the prime reason being that people find it too expensive and financially unaffordable.
Getting used car loans now days is no longer a difficult task. All you need to do is to go online and search for a lender or organization that provide used car loans. Before applying for a loan, you should know where you stand as far as your finances are concerned because you have to be prepared for repayment of the loan after a certain time period. Find out answers to the following questions:-
Which car do you want to buy?
What is the cost of that car?
How will it affect you financially?
After you have got answers to all your questions all you need to do is go online and fill in loan application form with your details. After that, the lenders or the organization will refer back to you with a loan decision. An important factor that the borrowers are always concerned about is the price of the car. If you are also the one who looks out for the price then you should know what blue book is? Formally, it is known as Kelly blue book and it is an industry guide to calculate the wholesale and retail prices of used and new cars. It can help you in calculating a correct price for the car that you want to purchase. For the convenience of customers, these are available online too.
Used car loans are available in both secured and unsecured loan forms. If you want secured loans all you need is to provide collateral to the creditor which may be your car, your home or any other asset. This method of taking used car loans allows the borrowers many benefits like low interest rates and easy repayment schedules. The second alternative to the borrowers is that of unsecured loans where you do not provide any collateral to the creditors. This can result in paying of higher interest rates than usual.
Used car loans are now available to everybody, even to people who have had a history of bad credit i.e. people with defaults, arrears, who have previously filed for bankruptcy or have been adjudged bankrupt, and with IVA's. Lending organizations have now opened the doors for those people who were earlier refused loans. So if you are a person with bad credit history you can also get used car loans. All lending organizations just need is a credit score of yours, which would be based on how you managed your previous debt repayments. An advantage of applying for used car loans for people with bad credit history is that they can now improve their credit score if they follow the terms of agreement thoroughly.
Cars are fantasies of many people but not everyone can afford them. Nowadays, with the advent of car loans everyone can get a car, or at least a used car. Used car loans are available in both secured and unsecured forms; hence, they can serve every class of people. Therefore, even if you have financial problems you can get used car loans tailor made to your requirements.
Alex Jonnes is associated with Easy Debt Consolidations. He is Masters in Business dministration and writes on various finance related topics. To find Debt consolidation loan bad credit, debt consolidation loan loest interest rates visit www.easy-debt-consolidations.co.uk
Source:www.articlealley.com/article_37169_19.html
You dream of owning a car but find impossible to purchase it. If that is the state you find yourself in then used car loans can help you own a car. Having a car is now not the privilege of the elitist any more. With the help of used car loans it has become an option that everyone can avail.
Used Car Loans as the name suggests are loans offered to people who want to buy second hand or used cars but cannot afford it. The reason may vary from person to person but the prime reason being that people find it too expensive and financially unaffordable.
Getting used car loans now days is no longer a difficult task. All you need to do is to go online and search for a lender or organization that provide used car loans. Before applying for a loan, you should know where you stand as far as your finances are concerned because you have to be prepared for repayment of the loan after a certain time period. Find out answers to the following questions:-
Which car do you want to buy?
What is the cost of that car?
How will it affect you financially?
After you have got answers to all your questions all you need to do is go online and fill in loan application form with your details. After that, the lenders or the organization will refer back to you with a loan decision. An important factor that the borrowers are always concerned about is the price of the car. If you are also the one who looks out for the price then you should know what blue book is? Formally, it is known as Kelly blue book and it is an industry guide to calculate the wholesale and retail prices of used and new cars. It can help you in calculating a correct price for the car that you want to purchase. For the convenience of customers, these are available online too.
Used car loans are available in both secured and unsecured loan forms. If you want secured loans all you need is to provide collateral to the creditor which may be your car, your home or any other asset. This method of taking used car loans allows the borrowers many benefits like low interest rates and easy repayment schedules. The second alternative to the borrowers is that of unsecured loans where you do not provide any collateral to the creditors. This can result in paying of higher interest rates than usual.
Used car loans are now available to everybody, even to people who have had a history of bad credit i.e. people with defaults, arrears, who have previously filed for bankruptcy or have been adjudged bankrupt, and with IVA's. Lending organizations have now opened the doors for those people who were earlier refused loans. So if you are a person with bad credit history you can also get used car loans. All lending organizations just need is a credit score of yours, which would be based on how you managed your previous debt repayments. An advantage of applying for used car loans for people with bad credit history is that they can now improve their credit score if they follow the terms of agreement thoroughly.
Cars are fantasies of many people but not everyone can afford them. Nowadays, with the advent of car loans everyone can get a car, or at least a used car. Used car loans are available in both secured and unsecured forms; hence, they can serve every class of people. Therefore, even if you have financial problems you can get used car loans tailor made to your requirements.
Alex Jonnes is associated with Easy Debt Consolidations. He is Masters in Business dministration and writes on various finance related topics. To find Debt consolidation loan bad credit, debt consolidation loan loest interest rates visit www.easy-debt-consolidations.co.uk
Source:www.articlealley.com/article_37169_19.html
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