Rising fuel prices threaten SUV sales (U.S)

Recently, sales of SUV�s and pick-up trucks have risen, but at late so have fuel prices, which may hinder sales and residual values of large SUV�s and pick-ups.

With fuel prices across the States averaging around $3 a gallon, it�s signing the highest levels observed since October 2008. An additional �50 may see customers purchasing smaller vehicles.

�If you see a �20 -�30 price increase per gallon over the course of a couple weeks then of course people are going to panic,� Alec Gutierrez, analyst for vehicle evaluation at Kelley Blue Book, said. Nevertheless, Gutierrez noted that if prices increase steadily, it�ll give the �market a chance to react rationally.�

Some showrooms have already begun to see consumer�s down-size. A large amount of customers are ditching large SUV�s in favour for compact ones like the Honda CR-V, Toyota RAV4 and Mercedes GLK.

Jason Stewart, general manager of Earl Stewart Toyota of North Palm Beach in Florida said: �Our small SUVs are doing OK but the large SUVs and large trucks have definitely cooled off since the pickup in gas prices�.

He also claimed sales of the Toyota Prius have tripled at his dealership. Dealers are also reporting a decline in prices as an end result to shove consumer�s into smaller and more fuel efficient vehicles.