Used SUV values drop as gas prices rise

The owners of sport utility vehicles and other gas hogs are feeling particularly squeezed these days. While the cost of filling their tank is going through the roof, the value of their cars is falling fast.Between March and April, average used-car prices fell 4.5 percent for large SUVs and 5.6 percent for large pickup trucks, according to J.D. Power & Associates. They rose 7.3 percent for compact basic cars such as the Honda Fit, Toyota Yaris or Nissan Versa.A separate study by Kelly Blue Book found that large luxury cars, such as the Mercedes-Benz S-Class and BMW 7 Series, are depreciating even faster than SUVs, says Kelly spokeswoman Robyn Eckard. She says large luxury cars get the same lousy gas mileage as SUVs -- about 12 miles per gallon. But unlike most SUVs, they generally require premium gasoline.Because depreciation is the biggest cost of owning a car, people who trade in a gas guzzler for a more fuel-efficient vehicle could lose more by trading than they save at the pump, according to a new study by Consumer Reports. This is especially true if they financed the first car and trade it within three years for a new car.The study highlights the importance of looking at the total cost of owning a car and not just the soaring price of gasoline.The biggest cost, according to Consumer Reports, is depreciation (48 percent), followed by fuel (21 percent), interest (12 percent), insurance (11 percent), maintenance and repairs (4 percent), and taxes (4 percent)."The first three years of owning a vehicle is the most expensive time," says Jeff Bartlett, deputy automotive editor with ConsumerReports.org.That's because cars depreciate, or lose their value, fastest in the first three years and more slowly in later years. And if you finance the car, interest will make up a larger percentage of your monthly payment in the early years and a smaller portion in later years. Home loans work the same way, although over a much longer period.If you're looking for a good trade-off between fuel economy and overall cost to own, here's what three automotive experts suggest.-- Jack Nerad, executive market analyst with Kelly Blue Book, recommends "a high-mileage conventional vehicle," such as the Honda Civic."Taking a contrarian view, if you need a full-size SUV because you tow a horse trailer or have seven kids, this might be a great time to buy one. There are a lot of incentives, and you might find the money you save more than makes up for any fuel cost," Nerad says."The best full-size SUVs are the Chevy Tahoe and GMC Yukon, which have intelligent fuel management systems that let you operate on four or eight cylinders," depending on need. "If you look at the number of passengers you can carry, the fuel economy per person transported is pretty darn good. They only become an issue" when there's a single occupant.-- Philip Reed, senior consumer advice editor for Edmunds.com, says gas-electric hybrids get superior gas mileage but cost more than their non-hybrid counterparts.As gasoline prices rise, the time it takes to recoup the price premium is shortening for some models, Reed says. "It's down to 1.6 years for the Toyota Camry hybrid," Reed says."So much attention is paid to hybrids that people overlook other ways to get good fuel economy," Reed adds. "You can get a fairly large family sedan with a four-cylinder engine, such as the Honda Accord. If you drive it right, you might get 30 miles per gallon."The newly redesigned Chevy Malibu "is a very fuel-efficient vehicle, even with six cylinders," he adds.Reed predicts the new Smart Car "will be a hit initially. It's so cute." It gets good gas mileage and seats two comfortably. But he says some Americans will dislike the balky, European-style transmission.-- Bartlett says , "The best way to improve fuel economy is to buy just the size you need, not a size bigger."Among hybrids, "the slam dunk now is the Toyota Prius."Among regular sedans, the Nissan Altima with a 2.5-liter, four-cylinder engine is "a fantastic option. It's a top-rated car by Consumer Reports and also has among the highest fuel economy in its class. It's really entertaining to drive."For large families, he recommends minivans, such as the Honda Odyssey or Toyota Sienna, over SUVs. Both get about 19 miles per gallon."One interesting alternative that deserves attention is the Mazda 5. It's a cross between a station wagon and a minivan," he says. It seats six in three rows and in Consumer Reports tests got about 23 miles per gallon.To research gas mileage, go to www.fueleconomy.gov or www.consumerreports.org/fuel.E-mail Kathleen Pender at kpender(at)sfchronicle.com.(Distributed by Scripps Howard News Service, www.scrippsnews.com.)