Don? Trade t where SUV, but
14 Sep 2009
gas prices continue to rise, your SUV is 16 miles per gallon, and his salary is not increasing. Consumers get their feeling empty pockets are starting to ask questions. Could the high gas prices will only be temporary? If not, then I guess it’s time to negotiate on the truck and get a fuel-efficient vehicles, right? Actually it could be the smartest idea. To answer these questions we must understand the current situation and decide what SUV means economically.
Sport Utility Vehicles (SUVs) have become the norm for purchase of cars in the last 10-15 years. How many cars were smaller during this period compared with cars in the 1970s, people interested in SUVs, and why not? These vehicles have plenty of legroom, a large storage area, four-wheel drive, they feel very safe because of his size and is strong. One of the best-selling offering a higher seating position that allows the driver to see more of the road and its environs.
consumers have only wanted the SUV but wanted bigger SUV. The big three U.S. automakers were Chrysler, Ford and GM in big profits on these vehicles. Ford Excursion, Chevy Suburban, Hummer, GMC Yukon and Chevy Tahoe is the largest SUV on the market. These vehicles were purchased by households, drivers and owners of small businesses. Because of a tax break many small business owners and especially a person who can lift a vehicle expense related work was enormous consumers of these vehicles. They were able to offset most of the costs. This encourages lawyers, doctors, accountants and apartment moving (переезд квартиры) to buy these SUV’s when they really do not need this type of vehicle.
U.S. automakers and consumers were happy, until a great shortage of SUV was magnified. These cars were gas hogs. Hurricane Katrina began to reveal this gap in 2005 when the hurricane caused the interruption of the refineries. Gas prices rose over a gallon. Prices start to go down to the refineries back in full production, but even when they were before the hurricane. This was due to the fact that the price of a barrel of crude oil to rise more. In 2004 the average price for a barrel of crude was. This leads to the fourth July 2008, as the price of a barrel of crude is now above 5 and the price of a gallon of gasoline is over.
This has caused the U.S. car manufacturers to slow down and stop some of the SUVs have been the most profitable in the past decade. Consumers buy fuel-efficient small cars and hybrid cars. The problem for many consumers are looking for trade or sale of your SUV to buy an automobile fuel economy, but there are not many takers at least what consumers think is fair value. Typical supply and demand has resulted in a lot of fuel efficient cars and hybrid vehicles sold by the ticket price or more. SUVs are selling well below the price of admission, as there are many more sellers than buyers. automakers are overloaded SUV and retailers can not sell what they already have on the lot.
these data makes it look stupid trade or sale of a truck at this time, but the financial numbers are what really affect the decision. There are many different situations that may be a consumer in a consumer who can not afford to feed their cars have to sell his truck in. Perhaps there is no credit against it and the value of the truck high enough to get a car of the same or lower price. This means that directly reduce their gas costs and a haven ‘t changed their monthly budget.
examples with numbers can probably give everyone a general idea to help with decision making., 000 are close to an average cost of an SUV. To configure this example, John bought a, 000 SUV four years ago. Zero and a low interest rate of 6% your monthly payments is 0 and has a current balance 00th Let us also consider that John bought the same year and model of SUV for the same amount but the loan is paid. Currently, a dealer offers, 000 of the SUV. Therefore the cost of every consumer has sunk in, 000 John also means you need 00, 000 paid to trade their existing loans. The remainder of 2000 will go to your new purchases and John, 000 will be devoted to your new purchase. Let’s take a look at these situations in two ways.
first will look at situations monthly budget. Because the car payments are the monthly payments we must determine how much money is spent on petrol every month. We will use the current average price for a gallon of gasoline in the U.S.. the return of Joan’s full-time job each day is 30 miles. Weekends she takes an average of 100 miles. So John drove one thousand miles a month. At 16 miles per gallon you pay 0 per month. Today is not your car payment a month because their total monthly payment for the gas and the car is 0 per month. John is looking to buy a car that is the same model in his SUV. Cost of car 000, but gets 27 miles per gallon. After his 2000 SUV trade in your monthly payment will be 6 of the Act (with 6% interest rate). Your monthly gas will be 0 This represents 6 per month for gas and car payment. your monthly payment for the car and gas is actually higher now, primarily because of its very few, 000 from his truck.
John
return to his full time job every day is 60 miles. The weekend brings you 100 miles. Therefore, the specimens of John 1,600 miles per month. John is 0 per month in gasoline. If John buy this car, so your account monthly gas is 7 After 2000 John will be able to make your purchase, pay for your car is 2 Its total expenditure for payment of gas and the car is now ninth John really will save more than 0 per month. He was however in the final year of his SUV and now its pay car payments will continue for five years.
The second way we do in these situations is to determine the equilibrium point. You can determine the amount of miles to take to compensate for losses in the truck. The loss is not truck, 000 penalties cost, but the difference in resale value of time before gas prices shot up to today. The sunk costs are related to trade in a vehicle to another. Do not use 000 because we strictly adhered to if the truck is worth the trade just to get better fuel economy. Before there was a sharp increase in gas prices, a typical SUV as John and John would have a value in trading around 000. Now the trade in value corresponds to a 000, 000 difference. The use of cost accounting systems are necessary to establish sales and variable cost per mile for mile. The price per gallon of gasoline to be converted to a price per mile, because we must have balance in miles. The sale is only the cost per mile of SUV fuel per mile. It is a gallon divided by 16 miles per gallon, equivalent to a cost of 25 cents per mile. The variable cost per mile is the fuel per mile. It is a gallon divided by 27 miles per gallon, equivalent to a price of 15 cents per mile. Then determine our gross margin for each mile that sells for 25 cents per mile minus variable cost per mile at 15 cents, or roughly 10 cents per mile margin contribution. Finally, use, loss of 000 and is distributed with gross profit of 10 cents per mile, which gives us the answer of 50,000 miles. The balance of 50,000 miles, the number of miles to be used in the car to restore, 000 loss of the truck. To simplify the problem by simply converting the cost of both petrol cars per mile and took the difference. We have divided the loss of van for this difference. John will take more than 4 years of driving the vehicle to recover the lost SUV in use today and will take John over 2.5 years.
future gas prices is unknown what causes the unknown future value of the SUV as well. But we know the value of an SUV has been greatly reduced. If we could have anticipated this fall, then trade the truck before that would have prevented the incident, 000 lost value. The problem is that most SUV owners could not do so this prediction is presented with situations that we examined. In these examples, so only the financial numbers alone do not contribute much to the price of a car truck. Moreover, as the stock market makes no sense to sell high and buy low SUV happens when cars are traded in low fuel consumption. If we consider the advantages of an SUV, which led to its popularity in recent years does not make much sense to give up these benefits. Maybe next time a consumer is willing to buy a new car purchase is not an SUV with a high consumption of gas, but for current owners of SUVs it makes sense to continue to enjoy the amazing features of these vehicles.