European Tribune

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Demand for new SUVs may be crushed, but the cars have an engineering lifetime of 10-15 years.  The more well-off can afford to dump the things in favor of a more fuel efficient car, but then what happens to the SUV?  If they keep the thing parked in the driveway then it is't a big deal, but if they sell it, then some other poor soul is stuck with it.

In the case where the SUV was leased, then the car reverts to some subsidiary of the manufacturer, and they will want to push the thing back out on the market.

by ericy on Sun Aug 21st, 2005 at 06:27:35 AM EST
[ Parent ]
They will be parked and replaced.  Or bought dirt cheap by people like me that only drive 5K miles/yr such that MPG econs really don't matter all that much.  Either way, the economic hit has already happened.  You can either try to sell a gas hog for the sweet FA it will bring or drive it until the gasoline econs get you.

If you drive 25K miles/yr, dumping a 16 MPG pig for a 30 MPG vehicle saves you 730 gallons/yr or $2200 at $3/gallon and prob a bit more on insurance/tag for smaller vehicle.  $200/mo is a decent motivator for people to just go ahead and realize the loss on the big pigs and move on.

Have you seen how cheaply the car companies are dumping new production on the market?   I finally broke down and bought a new truck when the AC died on the old one.  I had been holding out hoping someone would make a hybrid light truck. Got a  Nissan Frontier with 4 cyl and a stick (26 MPG with air on at all times -- damn hot here in summer).  Only cost $13.5K brand new.  Only the second new car I've ever bought but I couldn't find a used one as cheap as new once you factored in the price of the miles already driven.

by HiD on Sun Aug 21st, 2005 at 06:45:08 AM EST
[ Parent ]
http://ogj.pennnet.com/articles/article_display.cfm?Section=ONART&C=GenIn&ARTICLE_ID=234882& amp;p=7

Article from OGJ (bible of petroleum industry) stating that US deliveries of petroleum in July were down 3% due to high prices....

by HiD on Sun Aug 21st, 2005 at 07:17:58 AM EST
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