Auto dealers put brakes on SUV and truck trade-ins - South Florida Business Journal:

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The deal-breaker came in April when gas priceehit $3.50 a gallon. That's when large-vehicle purchasee at in Schenectady came toa standstill. Customers want cars with bette rfuel efficiency. But Erondy, a used car can't afford to take on any more gas-guzzlers. "I have to just tell them he says. "I'd have to be stupid to sell them a nice littlwe car and acceptsomething I'm going to keep untill Christmas." Erondy isn't alone. As people adjust thei r driving habits to cut fuel oversized vehicles are overtakingcar lots. discourages pickups or SUVs for tradre atits Pontiac-Buick dealership in Ballston Spa.
Oddly, trucj sales at the family's Chevrolet store in Amsterdam are farinyg better than expected ina fuel-consciou economy. "It's a crazy time right said RalphMangino Jr., sales manager at . "I've never seen anythinf like it." Truck sales began fallingv months ago with the slowinbg inresidential construction. the sale of used SUVs plunged 14 percenrin April, according to the most recenty data available through . That number compares with an 8 percent drop for the same montbhlast year.
Truck sales dropped 8 percent in thesame Trade-in values for both SUVs and large pickups have also Mangino advises shoppers to consider the equity in theidr vehicles and weigh it against the trade-in and potentiapl gas savings before deciding to downsize. "If we do take the the amount is so far behind book [value] or average that it's almost not worth it for someone," Manginio said. SUVs became popular in the late 1990ss when gaswas cheap, the economy was solid and the housinvg market was booming. Consumers began movin g away from them a few years ago as baby boomers aged and consumers turned tomore fuel-efficient crossovee vehicles.
Gas prices accelerated the People who owned pickup trucks becaus e they need them occasionally are also rethinkingtheir "Guys who are buying trucks now are buying them becausde they need them to do theifr work," Mangino said. Accordingv to the U.S. Labor Department's May Consumer Price gasoline pricesrose 5.2 percent, up 21 percent compared with a year ago. Earlier this month, Generalp Motors closed four pickup truck and SUV The company also is considering selling its Hummer The shift to smaller vehicleas indicates people anticipate higherfuel prices, said Donals Metzner, president of in Albany.
Consequently, the valuw of larger vehicles has declined as gasprices "In the last couple of months, they'vde dropped faster than they can publish the [automotive books," said Metzner, whose dealership had $80 millio in sales in 2007, according to the latest Business Review list of automotivr dealerships. Armory still takes trucks and SUVs as the question is whether customerxs will takethe trade-in values they'ree offered.