SUVs and Pickup Trucks Rapidly Losing Value: End of an Era?

There was a time when SUVs and pickup trucks were the kings of the road. They were big, sporty and powerful. Unfortunately, they tended to be fuel thirsty. And with gas prices soaring at nearly $4 per gallon, 13 MPG is just too impractical especially during trying economic times. Instead, Americans now prefer smaller and economical vehicles.

Just a few years ago, introducing the Smart ForTwo would have been seen as a corporate suicide. But because of rising gas prices, pumping fuel amounting to roughly $18 for the Smart car surely makes more sense than splurging $40-$80 worth of fuel for gas guzzling SUVs.

This situation has happened before. Americans tended towards smaller vehicles when gas prices spiked. But when things stabilized and gas prices came down again, America renewed its love affair with SUVs and pickup trucks.

But things are different now. Chances are, gas prices will stabilize at a high price and will never be cheap again. If so, why else would anyone want to buy SUVs or pickup trucks?

How bad is the decline of value for these vehicles? Last september, a 2005 Ford Expedition sold $16,350. Now, its worth $12,400. that's a 24% depreciation in just nine months.

Dealerships are finding it increasingly difficult to sell such vehicles. And current owners of either SUVs or pickup trucks are finding it increasingly difficult to sell or trade-in their vehicles.

The common sentiment is that people no longer want these Gas Guzzlers. Everyone is desperate to economize. So desperate that even the Geo Metro, a small car that has not been in production since 2001, has seen a revival in sales. Believe it or not, the value of the Metro even increased by more than 100%. The 1990 Metro used to have a price tag of $1,175. Now, it sells for $3000. the reason for the appreciation is that the Metro does 40 MPG (that rivals gas mileage of many hybrids worth more than $20,000).

In short, SUVs and pickup trucks have suddenly become obsolete. They no longer answer to the current wants and needs of people. This is the reason why no one wants to buy them anyore. Those who have them, want to get rid of them as though the vehicles were the plague (although many environmentalists do look at gas guzzling cars as a disease for our planet).

Is the end near for SUVs and pickup trucks? It seems very likely.