New fuel economy standards: How will they affect the GX?
03-29-06, 11:00 AM
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New fuel economy standards: How will they affect the GX?
Saw in the news today that the Gov't issued new higher fuel economy standards for SUVs, such to be phased in over the next few years.
Any ideas/thoughts how this will affect resale value, etc of SUVs like the GX and LX et al?
Any ideas/thoughts how this will affect resale value, etc of SUVs like the GX and LX et al?
03-29-06, 11:12 AM
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demand will go down, so will resale prices on all vehicles w/ lower mpg's.
The GX and LX are real suv's so they will keep higher prices than the pretenders- those will drop like a rock since they carry no advantage over a street station wagon but all will take a hit.
The GX and LX are real suv's so they will keep higher prices than the pretenders- those will drop like a rock since they carry no advantage over a street station wagon but all will take a hit.
03-30-06, 05:45 AM
#3
Lexus Test Driver
Originally Posted by JWS3
Saw in the news today that the Gov't issued new higher fuel economy standards for SUVs, such to be phased in over the next few years.
Any ideas/thoughts how this will affect resale value, etc of SUVs like the GX and LX et al?
Any ideas/thoughts how this will affect resale value, etc of SUVs like the GX and LX et al?
Well to be honest it will really **** me off if they are able to make a 4.7L V8 get 24+ mpg. I would wonder why my car wasn't designed with that in mind. And you all know; They WILL find a way.
03-30-06, 08:29 AM
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Maybe some confusion here.
CAFE standards being raised for SUV/Light Truck class does NOT mean each individual vehicle has to meet 24mpg.
CAFE standards must be met by individual manufacturers on average over the volume they sell in that year for the CAFE class (in this case SUV/Light Truck).
There is already a CAFE standard for this class, they are just raising it.
Manufacturers employ MANY means to meet the CAFE standards (or just end up paying the penalty $). Some of which are engine/drive train improvements (remember when automatic transmissions were just 3 gears? and there were only 2 valves per cylinder?). But also by adjusting via price their sales volume of a particular model. Or curtailing supply for the models that bring the average down at the end of the sales year.
So, in fact raising the CAFE COULD in fact RAISE the price (and therefore raise the value of your resale) of our GX.
Here's why:
- either they have to add $ for better technology to the engine/transmission or go hybrid, price increases, resale value of previous models could also go up
- or they increase the price to adjust demand (and push buyer to other models), again potentially raising resale value of previous models
But, of course, there are other scenarios, we all could become "tree huggers", abandon our "evil addiction" and start riding bicycles, then your resale value will plummet.
CAFE standards being raised for SUV/Light Truck class does NOT mean each individual vehicle has to meet 24mpg.
CAFE standards must be met by individual manufacturers on average over the volume they sell in that year for the CAFE class (in this case SUV/Light Truck).
There is already a CAFE standard for this class, they are just raising it.
Manufacturers employ MANY means to meet the CAFE standards (or just end up paying the penalty $). Some of which are engine/drive train improvements (remember when automatic transmissions were just 3 gears? and there were only 2 valves per cylinder?). But also by adjusting via price their sales volume of a particular model. Or curtailing supply for the models that bring the average down at the end of the sales year.
So, in fact raising the CAFE COULD in fact RAISE the price (and therefore raise the value of your resale) of our GX.
Here's why:
- either they have to add $ for better technology to the engine/transmission or go hybrid, price increases, resale value of previous models could also go up
- or they increase the price to adjust demand (and push buyer to other models), again potentially raising resale value of previous models
But, of course, there are other scenarios, we all could become "tree huggers", abandon our "evil addiction" and start riding bicycles, then your resale value will plummet.
03-30-06, 09:36 PM
#5
Didn't the new requirements say something like a 10% improvement over 5 yrs or so? That's only like 1.5 mpg. You could improve aerodynamics, reduce weight. The landcruiser 4.2L turbo diesel (a little more torque than the 4.7L V8) already gets 24mpg on the highway, but there's no way it'll meet EPA air quality regs.
IMHO, higher gas/vehicle prices won't really affect the resale value of the GX/LX. Face it, for people who are willing to spend $50K+ on a luxury SUV (i.e., us) or even $30K+ on a SUV w/ 70K+ miles, how many of them/us think he cares if gas is $3, $3.50, or $4/gal? It would be like putting in cheapo 87 octane gas into the tank to save a couple of bucks. :-) Also, resale value is heavily driven by reliabilty and longevity of the vehicle. A 5 yr old domestic is less reliable than a 10 yr old toyota and, as a result, used prices are lower. Basic rule still holds...you get what you pay for.
IMHO, higher gas/vehicle prices won't really affect the resale value of the GX/LX. Face it, for people who are willing to spend $50K+ on a luxury SUV (i.e., us) or even $30K+ on a SUV w/ 70K+ miles, how many of them/us think he cares if gas is $3, $3.50, or $4/gal? It would be like putting in cheapo 87 octane gas into the tank to save a couple of bucks. :-) Also, resale value is heavily driven by reliabilty and longevity of the vehicle. A 5 yr old domestic is less reliable than a 10 yr old toyota and, as a result, used prices are lower. Basic rule still holds...you get what you pay for.
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