Will rising gas prices decrease the value of our cars?

[B-Line]

Just a question I thought I would throw out there.
I would think that the seemingly endless escalation of gas prices may start to sway people away from guzzlers like it did in the 70's.
Could it be, we might see a large drop in the purchase of SUV's and V8's if gas prices keep going up?
I remember when it used to cost me $40 to fill my 01 4.4. Now I pay $72 for a full tank.
-- I don't think we have seen this effect yet nor do I hear people talking about it. But if things don't change, I assume our big old guzzlers may take some big $$$ hits.
-- Will the trend change? Will people oust the SUV the way they did the sports car in the mid to late 90's??
-- Lets remember when Mazda made the RX-7, Nissan the 300zx, Toyota the Supra, etc. etc. those cars went away for a few years. Yes they did come back, but a trend did change.

What do you think? Are people going to start dropping the suv's for hybrid's? Or at least better gas mileage cars?

B

[Wagner]

IMO, the V8 SUV (such as the X5) doesn't have terrible mpg number. At least on my X5 I average 18.9 mpg and that is comperable with most large V8 sedans. Also, a SUV provides more room and utility then a sports car. A sports car, aside from being fun, offers little practicle use.

Gas prices will eventually stop this rediculous escalation and will level off. Will they be where they were a year ago?? No. The higher prices are becoming a reality. I paid $3.01 a gallon yesterday (up from $2.88 I paid last fill up)...and ya know what...the gas station was packed. For all the griping and crying there are still plenty of people at the pump because communing is a fact of life. So I wouldn't turn my back on SUV's just yet.

[bozo]

I think SUV's are a part of the culture now, and not just some faddish trend. Since I only visit the US about once or twice a year, whenever I go, what I see shocks the hell out of me..I get out of the airport, and I see 80 year old women who are 4 feet tall driving Excursions, and H3's..And its ALL over the place! If gas was a buck a gallon, the fact that these people drive these 8 mpg vehicles is reason enough to not be TOO discouraged about the value of SUV's in general.

Of course Im biased, but its no question that X's do REALLY good amongst its peers. I was talking to a guy at the US Embassy in London who drives a Pepper, and he says hes lucky to get 13 out of his ride. So more and more of his travels are becoming "official business" if you know what I mean...

The values may fall a little, but the demand for SUV's will ALWAYS be around IMHO...

On a more somber note, I DONT think the current gas prices are temporary...Lets hope Im wrong!...

[4.6is Ryder]

I believe that the SUV/SAV market will level off. We've seen a major spike over the past 5-7 years. Within that time frame, everyone that wanted to be in style (shall we say) ran out and purchased one. I think that will change. There will still be a market for this type of vehicle, but the customer will be a more practical one....soccer moms, dual income families, etc. Take me for instance...I'm not married yet, I don't have kids to tote around, I don't go on long trips that often, and I don't even carry backseat passengers. So, why would I drive a SAV...It's what I like. Most would say that my ///M3
was fine...I would agree, but I wanted the experience of the SAV. Since I am now on my second X, I'm hooked. So I might be somewhat of the exception, but as long as I contine to be blessed, I'll drive the X.
High gas or not. I believe we have two options as SAV owners...Drive or sell...there isn't a DAMN thing we can do about this gas situation........Phil

Oh I forgot to answer your initial question B...I don't think the value will fall too much. It's like anything else...when you find someone that sees more value than price tag, it's sold!!!!

[jditom]

Originally Posted by B-Line

Just a question I thought I would throw out there.
I would think that the seemingly endless escalation of gas prices may start to sway people away from guzzlers like it did in the 70's.
Could it be, we might see a large drop in the purchase of SUV's and V8's if gas prices keep going up?
I remember when it used to cost me $40 to fill my 01 4.4. Now I pay $72 for a full tank.
-- I don't think we have seen this effect yet nor do I hear people talking about it. But if things don't change, I assume our big old guzzlers may take some big $$$ hits.
-- Will the trend change? Will people oust the SUV the way they did the sports car in the mid to late 90's??
-- Lets remember when Mazda made the RX-7, Nissan the 300zx, Toyota the Supra, etc. etc. those cars went away for a few years. Yes they did come back, but a trend did change.

What do you think? Are people going to start dropping the suv's for hybrid's? Or at least better gas mileage cars?

B

Yes it will assuming gas stays over 3 and approches 4 bucks.
But the upside is we will stop producing 8-9,000 lbs Surbabans, H 1,2,3 etc. We will finally see what Europe has been doing with there wonderful TDI's. All the X5's I saw in Italy (only counted 3) were 6 cylinder TDI with much better mpg. Might as well get use to it. We have to change as a nation because the black goo will some day run out

[beemarman]

In the UK v6 and v8 X5 prices are low compared to the 3.0d engine. the gas price here in the UK is nearly £4 per gallon about $7. only about 4 in 10 X5 are petrol engined.

[somewhereinla]

I think most SUV sales will go down until new one with better fuel efficency comes along. I read that BMW will be introducing a hybrid x3 this month. I am sure that within a few years they'll introduce a hybrid x5 as well.
But since X5 are also luxury cars, and most people that buy them have higher incomes, the effect should be less as most luxury cars are not exactly gas efficient...

[Thunder22]

The days of sub 20MPG vehicles are dwindling. I'm not so concerned about the resale value of my X as it's a lease, but I'm sure that these gas prices can't be good for my Z06, well, that is if I ever consider selling it, which i won't

[JCL]

I think that there will be a market for a reasonably-sized SUV like the X5, but I expect the prices of large SUVs and pickups with gasoline engines to drop. Hummer sales seem to have taken a hit over the past months....

What I think will happen is that the current engine technology (all makes) will become obsolete very quickly. We have seen the difference valvetronic technology makes on BMW engines. There will be an even bigger difference when direct injection arrives on the BMW I6 and V8 in a couple of years. At that point, a 4.4 that is two generations back in engine technology (pre-valvetronic) is likely to be worth less than a 3.0. It won't just be the fuel consumption, it will also be the message that the V8 badge sends. Taxing it more wouldn't hurt either. Those that want the larger engine will pay to have the newer technology.

While direct injection doesn't require ultra-low sulphur fuel (unless it is a stratified charge engine with a special catalyst) the introduction of more direct injection options will be concurrent with the legislated availability of ultra-low sulphur fuel, similar to what will happen with diesels in North America.

Just my $0.02 crystal ball. Contrary predictions welcome.

[Intel55]

I think it will lower the resale of the X5's and similar SUV's if gas prices stat above $3.

I just did a 300 mile trip in my '05 4.4 and got 21.8 mpg @70mph avg. Not too bad, but my C5 Vette gets 31.5ish on the same trip (6spd).