I have seen a plethora of articles like this one on MSN proclaiming that now is the best time ever to jump into an SUV. The articles invariably point out the low price point and their prediction that gas prices will go down to "normal" levels in the future, which in turn makes SUVs less costly. Of course, these articles completely ignore the why the price of SUVs are so low and how exactly gas prices are going to go back down.
The simple economics explanation for the low SUV prices is that demand has dropped. And an economist would assume that people were acting rationally and decided that the costs of an SUV were not worth the benefits. Of course, markets can be wrong, but a basic presumption of all economics is that markets work efficiently. The price is set by what the collective society values a product as. It is true that emotion (something economics struggle to grasp) can disrupt markets and many of the articles point out negativity towards SUVs now, but there is no evidence that this emotion is what is dragging down prices. In fact, it is pretty clear to me that emotion was artificially boosting SUV in the past; people were feeling patriotic about driving Hummers, and SUVs were the new it product. Regardless there is no credible evidence that SUV prices are going to rebound in the future; the entire argument rests on the assumption that current prices will trend back to past prices over time, but this assumption is fundamentally flawed, just ask anyone still looking for tech stocks to hit 2000 highs.