Do some math before trading in SUV

David Predmore has been trying to sell his 1997 Dodge Ram  for three weeks. He said he hasn't been having much luck.

"I've had one call in the last three weeks, and when they found out it was a V-8, they said, ‘Never mind,'" Predmore said.

He said he has owned the truck for two years.

"I'm selling it because of gas basically," Predmore said. "It used a lot of gas to get to work, so I bought a motorcycle and I use it for work now."

Local car dealers say there are many like Predmore looking to trade in their lower gas mileage vehicles once unleaded fuel prices starting setting records. Demand for trucks and sport utility vehicles - as well as their market value - has decreased significantly due to rising gas prices, they say.

"SUVs and full-size trucks are flooding the market and driving prices down," said Chris Lewis, the finance manager at Bob's Auto Market. "Though there are a few people buying SUVs and trucks, there are not many as compared to a few years ago."

Steve Stevens, owner of Stevens Auto Sales agrees, but advises people to do some math before they rush out to trade in the gas guzzler for the gas sipper.

"On average, the value of SUVs and full-size trucks has dropped $3,000 - that will buy a lot of gas for a long time for the average person," Stevens said. "Say you trade in a vehicle to save 10 miles per gallon - National Auto Dealers Association says we drive an average of 15,000 per year. If you do the math, it would take five years just to break even."

Edmunds.com released its Gas-Guzzler Trade-In Calculator June 30 to help consumers determine the pay-back period and fuel savings associated with trading a car that gets low gas mileage for a more fuel-efficient one.

The Gas-Guzzler Trade-In Calculator prompts users to select the vehicle they are considering and the vehicle they would sell or trade-in. It automatically provides the Edmunds.com True Market Value prices as well as the average fuel mileage of the two vehicles. Users put in monthly gas usage and local gas prices and the calculator displays monthly fuel savings as well as the number of months it would take before they break even.

Sam Hudler, owner of Seaside Auto in Sneads Ferry, says he advises people to use the calculator or do their own math before making the trade.

"People are trading in SUVs and getting absolutely nothing for them, and they're trading them in for a car ... to save money," Hudler said. "How many miles do you have to go to make up that loss? Many people aren't aware of this or don't think about it."

Stevens said people with larger vehicles also need to think about their vehicles tank size as a factor in the sticker shock.

"The biggest thing I see is that people don't know how to calculate gas mileage - actual gas mileage - and don't consider the size of the tank," he said. "Like my daughter - she says she hates to drive the truck and takes the car because she hates how much it costs to fill it up ... Of course it costs more to fill up a truck, the tank is bigger."

Stevens said sales of economy cars have increased almost proportionally to the decrease in truck and SUV sales.

"In the course of the last three months my sales of small, four-cylinder cars has increased 50 percent," he said. "Last year, 42 percent of my total sales was trucks and SUVs; this year it's maybe 10 percent. The only thing you still have some demand for is from those looking for an inexpensive truck under $10,000, and these people have a specific need, like they have a boat of a business.

"And other years these people would have spent $30,000, but now they're only willing to spend $10,000."

He also pointed out that he has to pay more for small economy cars at auction, which has led to a recent price increase in the inventory.

"Economy cars are costing an average of $1,000 more at the car auction, so prices on these vehicles have gone up the last few months because of demand," he said.

Bill Bowen, general manager of Stevenson Toyota, says the truck buyer today has changed.

"It used to be people would come in daily and purchase a truck, even though they didn't need one," Bowen said. "Now, unless they need a truck for commercial or other specific reasons, they aren't buying a truck or big SUV."

He also said families are settling for smaller vehicles.

"We're seeing people that have three kids moving into a (Toyota) Camry now, because fuel economy is a very big deal," he added.

Stevens said it is the worst he has seen.

"I went through the 70s with gas rationing, the 80s with the truckers strike, the 90s with 18-percent interest rates on brand new cars, two desert storms and gas prices, but in all my 32 years, the situation now is by far the worst than anything we've experienced, especially in the car business," he said.

He said no matter what vehicle a motorist drives, there are some tips that can help ease the pinch at the pump.

"Don't do any unnecessary driving, and try to be more conservative on speed," Stevens advised. "Always keep the proper air pressure in the tires by checking them regularly, and make sure you keep the air filters and fuel filters clean, and have regular tune-ups."