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« Why Stocks Are for the LONG Term | Main | Anyone Else Have a Broken RockBand Drum Pedal? »

Why Are People STILL Buying Trucks and SUVs?

By JLP | May 7, 2008

Although I don’t see as many new trucks driving around as I used to, I’m still seeing quite a few brand new trucks and SUVs out on the road. I don’t understand why anyone would buy anything these days that doesn’t get over 25 miles per gallon.

Think about it, if a truck averages 18 miles per gallon (which seems high to me) and you drive it 12,000 miles per year, with gas at $3.50 per gallon you’re looking to spend $2,333 per year (or nearly $200 per month). If you drive a Hummer H2 that averages 11.5 miles per gallon* and drive it the same number of miles per year as the previous example, you’ll spend OVER $3,600 per year just on gas!

Unfortunately, those who already own large trucks and SUVs are going to have a tough time selling them. Demand for trucks and SUVs has fallen, leaving lots of unsold vehicles on dealer lots. Dealers are offering incentives, which is hurting the used car market. I’m so glad that we didn’t go for a big SUV when we were car shopping 6 years ago.

What about you?

Are you in the market for a car or have you recently purchased a new car or truck? If so, what did you buy and what thought process did you use in making your decision? Did the price of gas weigh in your decision?

*I used mileage numbers from this Wikipedia Hummer H2 page, which lists the H2 as getting 13 MPG highway and 10 MPG city. I took those numbers and averaged them arriving at 11.5 MPG.

UPDATE: I should have mentioned in my post that there are circumstances in which people NEED trucks. I wasn’t trying to imply that no one needs a truck. That said, I have seen LOTS of pickups that NEVER see work! LOL!

Topics: Budgeting, Cars |