Posted on 10/03/2019 10:59:03 AM PDT by Red Badger
Robert Loehr’s dealership is hanging in just fine, much like Fiat Chrysler Automobiles NV’s sales did last quarter. But just as investors doubt the U.S. car market can sustain near-record results for much longer, the Georgia retailer is apprehensive about a key issue: sticker shock.
“Prices are crazy on cars nowadays -- all of them,” said Loehr, who sells Jeeps, Rams and other Fiat Chrysler models from a showroom northwest of Atlanta and has been in the business for 35 years. “They’re crazy to me, and I do it every single day, all day long.”
New Jeep Gladiators -- the truck version of the rugged Wrangler model -- can easily fetch $50,000 and are emblematic of a trend toward eye-popping prices carmakers are commanding for the pickups and sport utility vehicles making up an ever-greater share of their sales. Even as manufacturers and lenders increasingly stretch out auto loan terms to more than seven years and subsidize interest rates with incentives, average monthly payments keep climbing.
Affordability could become more of a risk if the mounting concern that the American economy is headed for recession ends up panning out. Those fears drove the benchmark S&P 500 down more than 2% on Wednesday, to the lowest since August. General Motors Co. and Ford Motor Co. shares slumped by even more.
The U.S. car market has probably reached the end of a great run, according to Brian Irwin, who leads the automotive and industrial practice for consulting firm Accenture. “It’s a step down from where we thought we would be a few months ago,” Irwin said in a phone interview. “I expect to see stronger incentives coming out.”
For more on U.S. auto sales, click here for Bloomberg’s TOPLive blog
(Excerpt) Read more at finance.yahoo.com ...
Since there’s no ability for the manufacturer to use shrinkage to keep their price competitive that’s a nice measurement of inflation for an American made product.
So, the name of the game is keep the debt pyramid growing. On this we agree, yes? Well, use your imagination as to what else can be leveraged besides homes, cars & college.
Air (carbon credits), health, entertainment ...? Let's talk terminal illnesses, life extension methods and cosmetic enhancements. All driven by genetic therapies, stem cell applications, etc. How much would you pay to live to 125+ with sound mind & body, and in great health?
Get the picture? There's no end to the number of things that can be debt financed given sufficient demand.
My 07 V-8 4Runner Sport was $39k, paid cash. 12 years and 90k miles later, I’ve had nothing go wrong with it. With continued regular maintenance I’ll drive it another 12 years if I live that long - last vehicle I intend to buy.
My 07 Tundra 5.7 Limited has 180k miles, and all I had to fix so far was a rear wheel bearing.
Used to be the other way around........................
“My neighbor’s new specced out F250 was near $70k. “
3500 Silverado 4x4 diesel crew cab dully on my dealers lot 2 months ago.. $85k.
I just got back from taking my daughter car shopping. Hyundai wants $62K+ for a 2020 G80.
Certified, pre-owned.
I saved $24,000 off sticker, almost half of original, for a car with 19,000 miles.
Warranty went bumper to bumper to 60,000 and/or 10 years.
Why would you ever buy new?
Jeeps used to be one of the cheapest new vehicles, now they are no different................
Exactly so..............
And you know dang well that car didn’t cost anywhere near that to produce...................
One big problem here us that WORK trucks are stupid expensive. A basic cab/chassis f350 superduty before the bed, cabinets and insurance is 6 or 7 hundred a month for 7 years or so. If your within 10 years of retirement it’s no go. This, of course, Jacks the price of used trucks to stupid as well.
My first car was a 1966 FIAT 1500 Spyder. It was a very lousy car except when it was running perfectly, which was seldom. The educational value of owning such a dog and keeping it together was, however, priceless.
That’s insane!.................
Yep. At least the drive train seems to be mostly sound.
Even the heater control “motor” that makes the air bow on your feet or defrost, or in your face broke. And it is so close to the structural member attaching the steering and dash to the firewall that you have to MAKE a special tool to get at it.
I bought the part from amazon for only 20 bucks, but the installation is not worth it. It’s stuck on defrost for life.
And the dashboard display stopped working, twice. The first time I paid $75 to get it fixed. The second time I went to a youtube video that showed me a cluster of four diodes that might be the problem. I took mine out and, sure enough, one of them appeared to be a bit of a “cold solder” joint. It is a “low heat” solder joint so I very carefully got the solder to melt and backed off. The dashboard now works.
I found out this problem is so common with 2000’s chevy trucks that if it hasn’t happened to you yet, it almost certainly will.
That is simply not acceptable.
Done.
More if it’s a “Look at me” penis enhancer.
Hey! I drive a 2005 Mustang 125K miles. Bought it from my son. I also have a 1994 Toyota 4x4. Screw new cars.
In the Trump economy people have money; some lots of money. Especially those who have retired, sold their homes, and are looking at a trouble free 10 year run roaming the back roads of the US.
And then there are the contractor status vehicles. Tons around in SoCal - guys are making bank, and showing it with nice new shiny mini big rigs.
“In the Trump economy people have money; some lots of money. “
I live in Marcellus shale country.
My best friend has a gas well on his property since 2015.
Makes $70k per month in royalties. Yes $70k every month
Ascent gave him a projection last year-they predict the well will last for another 15 years. He is 59 years old.
His ground was worthless before and a average job and had to watch his pennies.
Yes some people are doing very well and some are just struggling. Shows how life is unfair.
Our local Ford dealer had a 2017 Convertible Mustang and they were asking $43,500 for it- down from the original $52,000. I offered them $35,000 which they declined. The dealership manager tried to tell me it was “brand new”. I asked how he could call it brand new since it was almost 3 years old. He said “Lady you can’t count- from 2017 to 2019 is 2”. I said “Sure, but considering it was made in 2016 that makes it 3 years old because 2019 take away 2016 is 3.” He just turned around and walked off. Last I heard they had to send that car off to another place to try and unload it.
There is plenty of fair to go around. Grab your share....if you dare...
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