High Fuel Prices Contribute to Deals, Incentives on SUVs

Though high gas prices may seem to be a deterrent for consumers in the market for an SUV, AutoTrader.com contends these larger units might be some of the best deals out there.
As fuel rates remain high and demand for these gas guzzelers continues to lessen, it is beginning to be hard to ignore their falling price tags.
In fact, in a tracking study conducted by AutoTrader.com, 66 percent of new-car shoppers indicated that they are more likely to consider a more fuel-efficient vehicle due to high gas prices, and shopping activity on the AutoTrader.com site shows that interest in full-size and midsize SUVs has declined.
And as prices fall for full-size and midsize SUVs, incentives may rise as dealers try to turn these less popular models.
Backing up this assertion, Rick Wainschel, vice president of automotive insights at AutoTrader.com, said, "Automakers have a higher need to offer deals on vehicles that are less in demand to move them off dealer lots, so there’s a connection between shopper interest in particular vehicles and the number of available incentives.
"Because of today’s high gas prices, shoppers are showing significantly more interest in smaller, more fuel-efficient vehicles, so there are more deals to be had on larger vehicles like SUVs,” he added.
And though buying one of these units may seem like the wrong road to go down as gas prices remain high, families that can’t do without a larger SUV might be hitting the lots in the coming months.
"Though it may seem counterintuitive for people to shop for large SUVs at a time when gas prices are high, the simple truth is that the smaller vehicles, which tend to be more fuel-efficient just won’t cut it for some shoppers," added Brian Moody, site editor for AutoTrader.com.
"We recommend that people define their vehicle needs first to decide what type of vehicle they need, and then choose the right model within that segment. For people who need extra cargo capacity or space to accommodate larger families, now is a great time for those shoppers to purchase a large SUV,” he continued.
Delving more into statistics that became evident as far back as the start of this year, views for new full-size SUVs are down 29 percent, and views for new midsize SUVs are down 11 percent on the site.
But in looking at the most popular full-size and midsize SUVs on AutoTrader.com this past month, the top five in both segements are are all currently offering incentives, as follows:
Most-Viewed Full-Size SUVs
1. Chevrolet Tahoe
2. Dodge Durango
3. Chevrolet Suburban
4. Ford Expedition
5. GMC Yukon
Most-Viewed Midsize SUVs
1. Jeep Wrangler
2. Jeep Grand Cherokee
3. Ford Explorer
4. Chevrolet Equinox
5. Ford Edge