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 ...
Like colleges, buyers want bling. They want the latest technology and they are willing to pay $600 a month for it.
I wouldn’t pay $40k for the Gladiator, let alone 50k
$600?!?!
Try $1,000 for a new Ford Truck with 10% down, financed over 5 years.
$60,000+
My first house cost $80,000.
If China ever gets to import their small trucks the ‘Big 3’ would be bankrupt.
You can buy a truck in China for 3K or less!
I really can’t understand how cars got so expensive.
The truck I drive - which is only 6 years old - has gone up almost 50% since the last time I bought it - crazy, who wants to pay $40-$50K for a rapidly depreciating asset. I will keep mine a lot longer unless some sanity returns to the market.
According to Scotty Kilmer (see youtube), Fiat/Jeeps are now overpriced junk. FIAT = Fix It Again Tony.
Had a FIAT in the 80’s.
Spent more time under than in it..................
Yeah, but in an hour or so you have to buy another one!...................
Wait a year or two now that cars don’t appear to be rusting out the way they used to. When sales levels crash dealers will be begging you to take cars off their lots.
The most technology my jeeps have is electronic ignition.
> Like colleges, buyers want bling. They want the latest technology and they are willing to pay $600 a month for it.
No problem. When it all falls apart, taxpayers will come to the rescue.
Jeep and reliability never really went in the same sentence.
On a side note: Buy a new Ford truck and you'll soon regret it. In fact, buy a Ford anything and you'll be sorry.
The American car industry has been destroyed by greedy labor unions.
Time for another ‘Cash for Clunkers’, since the Obozo one went so well........................................./s
The ridiculous prices are why we are still driving a 2002 Toyota van and a 2012 Toyota Prius both with over 150k miles.
I did buy a car for my oldest daughter last year after graduating college and getting a job prior to finishing.
I’ll buy one for my other daughter in a year or so when she finishes.
Outside that I’ll drive what we have into the ground.
That’s how I feel about all the Pickups today.
It’s why I bought a “salvage title” truck. Less than ten K for a pretty nice truck. It’s had a lot of problems, but it turns out that is just because it is a silverado. All the problems it has had are common to those trucks.
It’s also why it is the last GM product I will ever own.
My first house cost $53k. Three bedroom with a family room and close to downtown Seattle.
With Two
You get Noodles.
I was excited for the new Jeep CJ revival until I read the specs and overall performance. They are seriously underpowered and that goes for the gas and Diesel version. I finally got a close up look at one and the quality was questionable. A can safely say the new versions are now were near what their predecessors were. I started to look into pickups and the prices are so out of hand its ridiculous. $x4 verses standard have always been different but now its quite a jump. I keep asking who can afford these and then insure them... Maybe I am just waking up on this but the cost is the same across the board for cars and trucks.
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