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I'm sure the gas prices will start to impact the SUV market. But I don't see the demise. I see an awful lot (emphasis on awful) of Expeditions and Aviators, and these things have the $2.5K DVD setup, the $4K Navigation setup, and wheel options that cost more than my first two cars put together. And I'm not talking about aftermarket gee-gaws; I mean the standard dealer option list.
Lots of these babies are going out the door for $40K+. OK, maybe less with the "You Pay Our Price, But We Get Better Benefits" promotions. I'll bet that gave folks a chance to buy a more loaded Chevy Subdivision.
So if folks are willing to put up $40-$50 large for their very own mobile entertainment center, are they realling thinking about the additional fuel cost?
The scary part is that the replacement for the SUV isn't a Civic hybrid. It's a 22 mpg sedan or minivan. Assuming a 10 mpg improvement (12-22), and $3 a gallon instead of $2, that's a whopping savings of $1650 over the three years/36K before they trade it in for the new flavor. $1650? They spent more on the Off Road Appearance Package (Brush guards, skid plate, and factory-applied mud).
I suspect that despite TV interviews showing folks grousing at the pump, sales of the big SUVs will keep on keeping on. Driving one is a status symbol - "I've got enough money to feed this hog, and you don't!" Even if they don't have the money. I suspect that may not be a concious decision for most folks, but it's back there in the lizard part of the brain when they walk into the showroom and have to look up. Where the gas prices are killing people are the folks that actually need a big truck, like contractors and tradespeople.
I expect the SUV market to take a hit, but I don't see it doing more than declining a little.
How's that for a rant?
posted by 192.249....
Posts in this Thread:
- $3.04 9/10s for premium unleaded credit price...., Mike Lynch
, Tue, 2 Aug 2005 16:49:49- $3.09 9/10s for 91 unleaded - Williams, AZ (nm), steve, Sat, 6 Aug 2005 10:35:17
- YOW! Then again, people in SUVs don't run premium, Noel, Thu, 4 Aug 2005 08:47:34
- Two bucks for the gas, Rafe, Wed, 3 Aug 2005 18:57:30
- $2.52 premium in Albuquerque..., carlotta, Wed, 3 Aug 2005 18:29:46
- $2.859 a few minutes ago in Glendale, CA. n/m, Geoff, Wed, 3 Aug 2005 18:28:32
- $2.41 for prem. in Poconos, PA last wknd,, Rich T, Wed, 3 Aug 2005 16:04:38
- $2.71 for 93 at Hess in Brooklyn, & 5% disc, Rich T., Wed, 3 Aug 2005 15:56:02
- $2.96 Menlo Park CA Premium (92) (nm), Scott Paterson
, Wed, 3 Aug 2005 13:57:07 - $1.15 per LITRE here in BC for Chev94:-( n/m, steveC, Wed, 3 Aug 2005 12:31:00
- ExxonMobil: 32% increase in 2Q profits, ChuckD
, Wed, 3 Aug 2005 11:32:58 - Another price record for crude oil :( grrrr, jimtimkim, Wed, 3 Aug 2005 07:45:28
- In the world of $2500 DVD options...., Ari
, Wed, 3 Aug 2005 06:20:37 <-- Viewing This Message- Yes and no...'cuz gas is different., Noel, Thu, 4 Aug 2005 10:37:06
- Somehow gas is different from other purchases, Rod
, Wed, 3 Aug 2005 09:16:56 - Re: In the world of $2500 DVD options...., PhillySaaber, Wed, 3 Aug 2005 07:43:48
- LOL! Off Road Appearance Package. nm, Erik, Wed, 3 Aug 2005 07:12:29
- Just hosted a guest from Germany -about $12 per gallon!, Mike in Anchorage, Tue, 2 Aug 2005 22:17:03
- statistics, nt moore, Tue, 2 Aug 2005 20:08:32
- Yikes, I'll fill up before I come up..., Orion, Tue, 2 Aug 2005 19:30:41
- $2.35 for 93 (premium) in Pittsburgh. n/m, Dan
, Tue, 2 Aug 2005 19:13:01 - $2.26 for Prem at BJs in Atlanta, Steinway, Tue, 2 Aug 2005 18:16:10
- Re: $3.04 9/10s for premium unleaded credit price...., cryptical, Tue, 2 Aug 2005 18:12:47
- Re: $3.04 9/10s for premium unleaded credit price...., TedP, Tue, 2 Aug 2005 17:46:39
- Re: $3.04 9/10s for premium unleaded credit price...., SaabSpeed, Tue, 2 Aug 2005 17:03:03
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