I was bored at work earlier this week and read a news article about the market for used sport utility vehicles. Because of the recent high gas prices, selling one of these high gas consumer vehicles is harder than ever. According to CNW Marketing Research, it took 66 days to sell a used SUV in April and the average sale took place at a 20 percent discount from the Kelley Blue Book value. This parallels what I have been seeing at the lot of the used car dealership near where I live.
The reporter goes on to write about the challenges facing current SUV owners.
“Frustrated and unable to afford prices at the pump, Nizami last month turned over the Toyota to a dealer who only sells vehicles from private owners. Nizami is still paying the $450 loan but now is bumming rides to work with a cousin and worrying about making enough from the sale to cover the car loan.”
In other words Nizami borrowed $450 to finance the purchase and is worried he won’t be able to resell it at a price high enough to cover the amount still outstanding on the loan. The mainstream media would have you believe that the economy is pretty bad but it’s not that bad that an SUV owner has to worry about a $450 loan.
The Boston Globe should hire a new business reporter. I’d take the job but unfortunately I already have one.
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