Used SUV and Truck Values Plunge

Washington DC July 28, 2008; The AIADA newsletter reported that you can add your pickup truck or SUV to the list of things like your stock portfolio, your 401K, and your house that aren't worth what they were just a few months ago.

Used-car values are closely tied to new-car values. And thanks to $4-a-gallon gasoline, the bottom has dropped out of new-vehicle demand for pickups and SUVs.

"I've never seen anything like it, where segments have fallen as much as they have and as quick as they have," says Ricky Beggs, vice-president and managing editor of Black Book, an industry benchmark for trade-in prices.

According to Black Book data, the average trade-in value of a 2006 Chevrolet Tahoe has fallen around 29 percent, or more than $6,000, since March.

The drop in values is only good news if you're in the market for a new or used pickup or SUV. Automakers said low trade-in values are inhibiting shoppers who want to swap their gas-guzzling truck for something more fuel-efficient.

They're suffering from sticker shock when they learn how little their trade-in is worth, and many don't buy anything. According to Business Week, thanks to improved quality, there's nothing stopping many truck owners from hanging onto their trucks.

CLICK HERE to see the vehicles with the worst trade-in values in the U.S.