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Are you kicking your gas guzzler to the curb or hanging on for comfort and safety?

It has been reported as the gas prices soar past the $4.00 a gallon mark people are trading those SUV's in for the more economical cousins that sip gas and offer modest creature comforts. fuel prices

Today we are seeing more people shopping on line, looking for homes on line, dumping the toys that suck gas and looking for alternative sources of entertainment.

The used car lots are filling up with SUV's and if you thought gas is high now wait. Many feel that when they trades happen...people will feel like they can go farther on that tank so they will go right back to the old habits of driving everywhere and the national fuel consumption will not go down a drop! So don't expect the sudden change in cars wit gas guzzlers h better fuel economy to answer our gas price woes.

Here is a bit of reality....some of the dealers are only allowing $4000.00 trade on vehicles that are worth $12,000.00. They don't want them either so they are going to take them to auction and make some money at your expense. So do you think it is worth the wait and pay a bit more...or is the big hit at the dealership better for you pocket and exchanging payments?

This is exactly what the home owners in many areas are feeling, they need to sell to get rid of that to much debt payment and get into something more manageable but the market is giving them a big slap in the face with a dose of reality. If they sell to low they don't have the down payment but if they keep their price up they won't sell.

None of these decisions are easy but the alternative is survival of the family. So is taking the hit a better choice than bankruptcy....is hoping for a short sale that can be worked foreclosed out with the lender an option?

Is your neighborhood one that has not been affected by short sales or foreclosures? If you think that you are wrong...all areas are having their prices impacted. Look at the million dollar homes and notice they may have been worth 1.5 million or more a few years ago. Very few markets have been left untouched by this market. Just like very few families go without noticing the fuel prices. My SUV sucks down a $100.00+ a week

So are you cutting costs, selling even though it isn't the right time for you, dumping that gas guzzler too. If it is right for you your only alternative is to make sure you make the right decisions
for your family.

nice to meet you

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Posted by Gary White~ Grand Rapids Real Estate, FlexIt Realty, a call or click away! on 06/15/2008 11:20 AM

Comments (20)

dumping the gas guzzler, changing to reduce costs, budget trends

Originally posted at: Gary White FlexIt Realty~Real Estate & Updates, Grand Rapids & West Michigan : Are you kicking your gas guzzler to the curb or hanging on for comfort and safety?

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20 Comments on Are you kicking your gas guzzler to the curb or hanging on for comfort and safety?

JUN

2008

I'm hanging on to my SUV, Gary! I've always felt that a comfortable vehicle for showing clients is a necessity in this business, and the cost of gas is a necessary business expense. When gas goes up, or is less available (as it was back in the gasoline shortage - was that the 70's or 80's?), or business is slow, I modify my driving habits - fewer non-business outings, for example.

If someone's home value is down now, and they don't need to sell, chances are the values will go back up in the future if they just hang in there and keep making their payments. We saw this in the 80's - the only time it happened in my market in the past 35 years. What you do depends on your own individual circumstances and your own market, so there really isn't one right or wrong answer. That's my take on this.

Gary, we're seeing gas prices at $4.55 for regular and as much as $4.91 for high test. Yet the parking lots are full of Denali's, Escalades and Suburbans. I think these people are comfortable in their vehicles and will hang onto them. Me? I prefer a smaller car and I have a terrible time parking. I bought a hybrid about 4 months ago when my older, larger car went out of extended warranty. I love my Toyota Prius.

I'm keeping my pickup (diesel - OUCH!) but looking for a smaller second car to bear the brunt of my running around.

In our area, we're having a little impact, but we're looking at it as an opportunity for some folks to downsize. We still have buyers for the bigger houses - usually coming in from out of state where they had the giant gains that led to the equally giant losses, but where they can sell at a lost and come here and get what for them is a deal - so some of our sellers can sell to those folks and buy a smaller, more economical home. Sometimes in the same area - we have buyer's and seller's markets, in different price ranges, within the same area.

JUN

2008

Last year my husband bought a Dodge Ram. I remember asking him "How much will it cost to get you back and forth to work each day?" (work is 90 miles round trip). In all seriousness he replied "Not much more than what I'm paying now.".

He also has swamp land in Arizona to sell me and I'll probably think it's a great deal and buy it.

Gary - great analogy! I almost bought an SUV back in June - wow, am I happy now. I would still love one but I just can't see the expense. As for the homesowners? They do need to make the right decisions for their families and not let that decision up to the bank.

I am keeping my SUV for sure. We work with a lot of families and trying to fit them into a smaller car isn't going to happen. The interaction of riding together with your client is priceless because it allows you the travel time between listings to discuss what they liked and what they didn't like about the homes we are viewing together. Some agents prefer to meet the client at the home and generally I feel this is mistake because you can lose out on the interaction and discussions. My SUV has plenty of room for 7 and with first time buyers we often bring along parents and grandparents especially if they will be helping with the purchase.

I love my SUV.

Drew Holden in a car seat

I have precious cargo I don't care what I pay!

Gary, Nice post. I like the analogy. Great concluding paragraph telling sellers you will list on 24 sites in 24 hours.

Unless I can find a way to strap my ladder to a Moped, I'm sticking with my F-150

I traded my SUV in on a cross over last October before the price of gas got crazy. I got what it was worth and I love my cross over and when I'm on the highway I get 29 mpg instead of the 17 mpg I used to get. I have roof racks if I need them and the back seat folds down for more cargo space. My Kia Rondo is a 7 passenger, but with the back seat folded flat I have as much or more cargo space than my Sorento and still have room for my kids, my clients and all the bags and boxes I cart around. It still kills me to fill up though, $45.89 yesterday, I'll be back to the pump by Wednesday and by then the price will be 7 cents higher.

I have had to consider both options in your blog. Firstly, I did have to sell my home at a loss in order to move into something I could afford. While not easy, it was the right thing to do.

With my car, I am driving my paid for Grand Cherokee into the ground. With no car payment, even expensive gas is cheaper! When it is time for a new vehicle, I am weighing the option of a more efficient vehicle. I am concerned about the safety factor, as well...lots of research to do.

I have to Dodge Caravans....both paid for...and not having that money flying out of my wallet every month is making this bump in price easier ot swallow. Im still not happy about it, but I can handle it better than most, I think.

Hi Margaret, we have to make adjustments...I would like to say I don't remember those 70's & 80's! ~;-) Thanks for the comments Margaret.

Hi Vickie, I looked at the Prius, but I already have three cars....the would mean my Z4 would have to go....guess I'll pay the price for a while longer...like everybody else. If the Prius would have had adjustable steering wheel, navigation and power seats I might have gone for it! Thanks for the comments Vickie.

Hi Gary, great post and analogy. For me I fall in the category of while our cars are getting old, they are paid for, so at least we don't have payments on top of the cost of gas. So as long as they don't start needing a lot of repairs, I will take the wait and see approach. As for the housing market, we have been more fortunate in NC than many. We never had the big run-up's in appreciation like CA, FL and others had.

JUN

2008

Gary, I am considering another car. I don't work with buyers that much anymore so no need for a spiffy SUV. I just don't want the payment anymore, with 3 kids off to college. I love my Lexus RX300 but I am looking at other things. My problem is I don't like little cars, getting in and out of them. Any suggestions?

JUN

2008

I still need that "prestigous car" as I work with buyers though I am considering a different car with better mileage

My truck is paid off in two months. Even at $5.00 a gallon I would have to more than double my driving miles to save money over a payment of the same low amount (and I don't think I could come within $100 of what my current payment is.)

I still average around 20/mpg, and, in my "showing" car, for taking couples around, I still get 30 mpg. I will probably wait about 2 years before getting another vehicle. Hopefully fuel cell cars will be reasonable (somewhat) and fuel starting to become available.

If not, a hybrid SUV.

You just have to roll with the punches. It's calle LIFE. Noone said it would be good. In time hopefully this will pass and things will get better. We have to think positive.

My hubby wants an M3 and he's even riding his bike to work.

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