In the fall of 2000, ALG predicted that the Expedition would retain 52 percent of its value in four years. ALG Vice President Raj Sundaram said the SUV market is experiencing the same kind of reality check as dot-com stocks falling back to Earth after a meteoric rise. In a way, it's like the stock market. That is not going to stop them from buying. Hefty incentives on new trucks also are eroding the value of used models.
Rebates usually diminish a vehicle's resale value dollar for dollar.
It's matured as a market segment, and the values are starting to deteriorate a little. Even so, he doesn't present as gloomy a forecast for truck values as others. In general, SUVs and full-size pickups are stronger than most midsize cars, and after two years of record sales, a drop in demand may be part of a natural cycle. I'm not predicting gloom and doom yet, but we're certainly keeping on eye on that.