Has anyone else noticed a disturbing escalation in the number of sport utility vehicles (SUVs) and large trucks being offered for sale-by-owner? A drive through my neighborhood last weekend, yielded a six count of such vehicles sitting in driveways, like this GMC.
AOL’s Money and Finance section posted an interesting article, “Dealers see SUV glut as drivers trade in gas guzzlers
” that highlights a new trend emerging in the used car market. According to the article, dealers are not accepting vehicles with low fuel efficiency for trade-in anymore because these vehicles cannot be turned around for sale with gas prices at record highs.
With demand for large vehicles slumping and their resale price plummeting, I wonder if some creative reuse for all these vehicles will become practical at a particular price point.
Here is one thought that might be viable today. Kelly Blue Book on-line lists a 2005 GMC Yukon Sport Utility 4D in fair condition in my corner of the world at $15,880 (MSRP for a new Yukon is about $40,000). This vehicle’s power plant generates nominally about 285 hp (212.3 kW). By comparison, Northern Tool and Equipment sells 200 kW Triton Industrial Diesel Generators for $45,000. Certainly the Yukon lacks the power electronics and conditioning hardware to be a turnkey power generator. However, the price difference of $29,120 is staggering. I suspect the vehicle could be stripped, converted into a stationary generator, and sold at a profit. Superfluous components such as seats, stereo systems, and tires could be sold off separately to supplement revenue.
This blogger predicts we will soon see a cottage industry in converting SUVs and large vehicles into inexpensive backup generators to provide a supplemental revenue stream for garages and car dealerships that can no longer sell these gas guzzlers for their primary purpose.
Who knows what other creative re-uses people will devise for SUVs.