When Buying a Gas Guzzler Makes Sense

Washington DC June 5, 2008; The AIADA newsletter reported that the gasoline-price-induced collapse of the SUV market presents a quandary for consumers. With gas at $4 a gallon, SUVs no longer make affordable commuter vehicles.

But at the same time, they've never been cheaper. The Wall Street Journal reports that manufacturers are offering between $2,000 and $5,000 in discounts on once strong-selling models, and dealers say there's plenty of negotiating room after that.

Discounting is even heavier on used vehicles, with some selling at roughly one-third the price they would have fetched new four years ago.

The bottom line is that, for people who don't drive much, today's deeply discounted SUVs may actually make financial sense. "It is the ultimate buyer's market," says John Casesa, managing partner at Casesa Shapiro Group LLC.

Big discounts are less prevalent among foreign-brand SUVs. Some, such as the 2008 Toyota Sequoia and 2008 Honda Pilot, carry cut-rate financing or cash-back offers, but not all.

Click here for a video of a Nissan dealer discussing the SUV market. Similarly, deals on luxury SUVs are easier to find among domestic brands than foreign ones.

For more on SUV deals, click here.