Wednesday, August 13, 2008

An S.U.V. Traffic Jam - NYTimes.com

Also glad to see this, although it's bad news for people who purchased SUVs over the last few years, and devastating for auto companies that got addicted to SUV profit margins...

The market for sport utility vehicles is starting to look a lot like the housing market, spreading pain to consumers, automakers and dealers.

Even the vocabulary is sadly familiar. Bloated inventories? Days spent on the market?

[...]

Automakers are offering discounts of $10,000 or more on some S.U.V.’s just to get rid of them, so dealers have space to stock more of the fuel-efficient cars consumers are clamoring for. On average, new sport utility vehicles sold for 20 percent below sticker price in July, according to Edmunds.com, a Web site that gives car-buying advice to consumers.

That, in turn, has decimated prices for used S.U.V.’s.

An S.U.V. Traffic Jam - NYTimes.com

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