Jack Nerad is the executive editorial director and market analyst for Kelley Blue Book, based in Irvine, Calif.
The company and its Web site, kbb.com, are among the leading providers of new and used car values, auto dealer price quotes and trade-in car values.
What does the sport utility vehicle market look like right now?
As you would guess … the market is pretty difficult for SUVs. They?re also threatened by crossover SUVs that have the same functionality as the larger vehicles but get better gas mileage.
I would say this probably all started six to eight months ago and, with gas prices in the news in the last few weeks, [has] become even worse.
How far have SUV values fallen?
They?ve declined twice as fast as they?d normally decline.
Are there any particular vehicles that have lost a lot of value?
It?s what you?d think, it?s the largest vehicles ? the Chevrolet Tahoe, the Cadillac Escalade, the Lincoln Navigator.
What advantages do dealers have in trying to move SUVs that the average person doesn?t?
It?s the incentives that dealers can do that you cannot, and they can advertise in a way that you probably can?t.
Looking forward, will SUV values continue to decline?
It?s hard to express because values won?t recover, but they won?t decline as rapidly as they have over the last six months. You usually see a bump in interest in SUVs as winter approaches, and we expect to see that again this year.
