SUVs Gouge Conumers After Incentives

Vera Gibbons, correspondent from Kiplinger's Personal Finance Magazine reported today on MSNBC that large SUVs have incredibly high profit margins for manufacturers.

Although dealers are offering record financial incentives to purchase SUVs, manufacturers are profiting up to $10,000 per unit after these incentives, specifically citing the monster Chevy Suburban. Of course, following the rip-off priced SUV ($40,000+) is the aftershock gouge the consumer faces at the pump, as the Suburban gets mileage of 14 city / 18 highway.

Gibbons went on to specifically mention the Toyota Prius which currently has no purchase incentives, and is in fact selling above sticker price in many locations due to its incredible value.

The free market speaks for itself: you get much more for your money when you buy a Prius than an SUV.

Posted on August 21, 2004 | 0 Comments