$4 Gasoline Hits SUV Values, Sales Plummet

New York, NY (AHN) - Sales of SUVs are plummeting proportionally downward in relation to the daily rise in gasoline prices as distressed owners find gas-guzzling vehicles almost impossible to sell, even at rock-bottom prices.

The rise of gasoline prices to more than $4 a gallon has caused a similar swift response on used car prices, but in the opposite direction. According to Mike Parker, manager of a used-car business, the price of a second-hand Chevrolet Suburban tumbled down by up to $8,000 in six months.

Similar to mortgaged homes, the declining resale price of gas-guzzling SUVs resulted in their owner owing the bank more than a vehicle's loan value.

Despite the mark-down in SUV prices, SUV owners are discovering they can not unload the vehicles, inquiries are close to zero.

The rush to unload of wallet-denting automobiles is seen in the online listing of 900,000 SUVs for sale from January to March, up by 19 percent compared to the same period in 2007.

Rising fuel prices are also having a detrimental impact on rural residents who have to drive longer to go to work or buy their basic needs, while generally having less income than their urban counterparts.

A May survey by the Oil Price Information Service and Wright Express said rural residents spend up to 16 percent of their monthly income on gas, while residents of highly urbanized areas like New York and New Jersey allocate only as little as 2 percent. The data bolsters the theory that people who can barely afford high gas prices are hard-hit by the constant fuel price hikes.

Glen Falk, OPIS retail pricing manager told USA Today, "These are people who can't telecommute or carpool or use public transportation or any of the other things that people in metro areas can do to ease the pain."