Smart money’s on bigger vehicles, expert says
Published on CanadianDriver, October 15, 2008, Member of the AOL Canada Media Network
Toronto, Ontario - Despite gas prices, a larger vehicle can be a better buy, according to Viraf Baliwalla, founder of Automall Network.
“Looking at the big picture, for the little extra you may pay annually in gas between a four and six cylinder, even a small eight, not only can you buy something more solid, with a smoother ride, more spacious and luxurious, safer and with far more bells and whistles, but you can buy it at a huge discount right now that far surpasses the extra gas costs,” Baliwalla said.
A midsize SUV may cost an extra $300 to $500 in fuel compared to a four-cylinder compact, but Baliwalla said that buyers could save several thousand dollars on the purchase price, which pays for several years of gas savings.
The increase in gas prices, combined with the financial crisis, has generated short-term panic with customers, who worrying about trading in their six- or eight-cylinder vehicles, creating a glut in the market for vehicles that are slightly bigger and more luxurious. “Dealers are willing to accept a lot less for the bigger vehicles with the proper negotiations,” Baliwalla said. “They just want to get them off their lots. At the same time, four-cylinder smaller vehicles are selling well and dealers are not being as flexible on their pricing, because someone else will buy them if you don’t.”