SUV, truck leases the latest victims of gas crisis
As gas prices continue to rise and SUV and large trucks lose favor with motorists, leasing those vehicles is becoming costlier.
Lease prices are based on how much a car or truck is worth at the end of the agreement. If a car's value is expected to be high at the end of the lease, the driver pays less per month. However, if the value is expected to be less, it will cost more to lease.
Dealerships are having a rough time moving big gas guzzling vehicles off their lots. Because the vehicles are dropping in value, leasing is becoming more expensive.
"The biggest hit right now is on pickup trucks," says George Lucas, of Richard Lucas Chevrolet in Avenel. "Sales are down about 50 to 70 percent."
According to Lucas, Chevrolet itself is discouraging SUV leases.
SUV owners like Robert Woodson say the vehicles need to be built with more fuel efficiency in mind.
"They have to improve the economics of these vehicles, because if you don't, you'll have a glut of them," he says.
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