It looks like the SUV “bubble” has popped. According to a recent article in the New York Times, SUV sales are down 32 percent for the year, and 43 percent for July.
“Just like hapless homeowners, countless car owners are now ‘underwater,’ driving vehicles that are worth less than the balance on their car loans. And just like desperate homeowners, the sellers of SUV’s are having to painfully cut asking prices.”
“Dealers are going through the same pain, only multiplied. They normally spend this time of year raking in some of their biggest profits and breathlessly promoting Detroit’s newest models. Instead, they almost cannot give S.U.V.’s away.”
That’s a real bummer for folks trying to sell their SUVs. The upside is that there’s never been more interest in fuel efficient cars, with lead times on some models running into the months.
“Sales of Toyota’s subcompact Yaris increased 46 percent, and Honda’s tiny Fit had a record month. Ford’s compact Focus model jumped 32 percent in April from a year earlier. All those models are rated at more than 30 miles per gallon for highway driving.”
The bicycle—the most fuel efficient vehicle on Earth—wasn’t mentioned in the article.