Friday, September 19, 2008

Gas is High: Time to Buy an SUV

Gas prices are leveling across the country. Sounds good, but in reality, it's a bad sign for the future. Gas trends pointed to higher prices this summer. So far, they have been hovering around the same level. It means we're in for harder times and higher prices this fall and winter.

It also means that now is the best time to buy an SUV, truck, big car, or anything known as a gas guzzler. Sounds crazy, right? It's not.

1) As gas prices rise, standard SUV prices fall. This trend doesn't seem to effect the luxury SUV line, as this MSNBC article shows. Small SUVs don't get hurt either. But if you're looking at an Explorer, Pilot, or other mid-sized or larger SUV, the prices are at their lowest and probably will be for a little while.

2) When winter approaches, consumers in many areas where snow and ice are possible will take their chances with the gas and take on the safety of a 4-wheel- or all-wheel-drive. Prices will go back up a bit then.

3) They don't get 9 miles per gallon, as many people think. An average 15K miles per year, 55% highway miles driver can expect to pay about $10 less per month for every average mile per gallon they improve. So, the difference between a Nissan Pathfinder and a Volkswagen Passat is about $600 per year in gas. It sounds like a lot, but so many people pay $2500 or more extra to get into a hybrid.

This post by no means indicates that I support purchasing an SUV. They are not "environmentally responsible" for someone without a need. But for those nice, big families in snowy states, it's okay to make the switch, and now is the time. They can go to those who brought this article to you, Washington DC Honda, Auto Loan Shreveport, and Minneapolis Used Toyota.

If you're not in that area, any old car dealer will have to do.

Car Buying Tips


My name is Rahul Mediratta. said...

Larger vehicles, particularly SUVs, overpopulate the U.S. because of trade and taxation policies that discriminately make SUVs more affordable for self-employed Americans. Without delving too far into the politics of SUVs, American taxation policies on the purchase of ‘larger vehicles’ effectively disables Japanese automakers from gaining a competitive edge over the lucrative SUV market. And that is precisely why Americans religiously salute the SUV.

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