Shocker: Gas-guzzling SUVs are today's
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Suppose, in a search for more fuel economy, the same
Expedition buyer opted instead to buy a 2002 Ford Taurus, with a
3.8-liter V6. It's rated by the federal government at 24 mpg in
a combination of city and highway driving.
Driving 15,000 miles a year, and paying $2.80 a gallon
for regular-grade gasoline, it will cost about $1,750 to drive the Taurus. So
the savings is only $650 a year -- $55 a month -- driving the Taurus instead of
the Expedition, a savings that's more than wiped out when you consider the 20
percent drop in prices in many SUVs since last summer.
A 2002 Expedition, two-wheel drive with a 4.6 liter
V8 engine, automatic transmission, air conditioning and a bevy of
the standard power options and 55,000 miles shows a retail value
of $13,800 on Edmunds.com.
At the beginning of the summer in 2005 that same vehicle was priced
at $17,000 -- almost 20 percent higher than the value in November.
What's more, Nerad believes that long term, the popularity
of SUVs, along with prices, will rebound. "I don't think we're
going to see a major turn away from SUVs anytime soon,'' he says.
Austin
Ligon, chief executive officer of Carmax, agrees.
"I can predict with some degree of certainty
that at some point SUV prices will have been beaten down to the
point that we will actually see a strong resurgence in the used-car
market for SUVs,'' he says.
"We saw it with the Explorer when it went through
its crisis -- the rollover crisis. We saw it last winter when we
saw a strong resurgence in SUV demand because SUV prices were beaten
down so far. So there is some price at which gas guzzlers become
attractive relative to other cars.''
For shoppers looking at new vehicles,
the bargains could be even larger. Manufacturers are attempting to boost sagging
SUV sales by offering cash incentives of $5,000 or more on the largest vehicles
such as the Chevrolet Suburban. Such a rebate would more than offset the added
cost of fuel for years. There are some caveats to all of this
contrarian logic.
If a buyer no longer needs the room and versatility
that a sport utility vehicle offers, then it makes economic sense
to shop for a vehicle that fits a buyer's needs and provides the
greatest fuel economy.
And if for some reason gasoline became scarce at any
price -- harkening back to the Organization of Petroleum Exporting
Countries, or OPEC, oil embargoes of the 1970s -- then economy once
again becomes paramount. However, few but the gloomiest of energy
analysts see that possibility on the horizon.
So the bottom line is this: Don't walk past those
SUVs on the used car lot simply because they use more gas. They could be the bargain
you're seeking. Terry Jackson is a freelance
writer based in Florida. | 
