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 ...
Pickups were never that expensive. But they were also a little more basic. I’d like to see a return to that. But to get that kind of truck I have to buy used.
That’s an increase of about 8% per year, in round numbers, since you bought the truck.
We would need a cost accounting, to see the breakdown of costs which make up the price of a car.
Have labor costs gone up? Prices of component parts which go into cars? Have pension and health insurance costs for employees risen? Rent for the car lots, costs of operations of car dealerships being passed on to consumers?
Have they marked up the sticker price but will be flexible on the price when you are in the salesman’s office?
I have read that the dealers are in effect begging buyers to purchase left over 2018 models. I think the same may be true for some pick up models.
Then there are used cars......... gazillions of them. Women are being taught by several vendors to buy their next used car using their phone...... sight unseen.
Hershey Bars ,
For a Nickle.
A Nickel!
I have driven my last two Ford vehicles (an SUV and a truck) a total of nearly 710,000 miles — all original powertrains, too.
Just bought a F250 Superduty 6.2, after looking and negotiating I said screw it and bought one with 17k miles on it, a returned 1 year lease. Let someone else take that huge hit off the lot, still got the rest of the warranty and aside from the wear on the tires you couldn’t tell it wasn’t new.
Just bought a
F250,,
Like the Space Shuttle!
I call it “TITANIC!”
I watch a guy named Scotty Kilmer on youtube. He’s been a mechanic for half a century. He is a toyota fanatic as far as reliability goes.
Yet he’s even saying that the modern Toyotas are not very good. I’m getting the distinct impression that the industry is intentionally building cars that are designed to get you about 100k miles and then do what the bluesmobile did.
In “my” experience, I bought a ‘01 F150 in ‘04 and paid $16.8k for it. It had 38k miles on it when I bought it.
It now has 225k miles on it and runs like it’s new. Yea, I’ve replaced parts here and there but they wore out. It’s to be expected. The engine, 5.4L V8, purrs.
I’m so confident in it I just put 80k mile tires on it and I’ll drive it until the wheels fall off.
F350 Super Duty Platinum Editions are topping $100,000. Were looking at 2017 versions with 20,000-40,000 miles and they are asking in the low $60K...
I took the Hit,,,
But the last Ford
I had,,,
I drove for
Twenty Years.
$600?? Many of these vehicles now exceed $800 easily, some well north of $1,000.
If I could buy a 2019 vehicle with the EXACT SAME standard and optional features as the 2006 vehicle, it would probably cost LESS!
Inflation and added regulations. All the safety and other features cost. The cheapest vehicles today have lots more tech and features than the most expensive did decades ago and the pace of change is quickening.
One of our local dealers has about 150 Jeep trucks on the lot. Waiting for the bubble to pop before I buy one. We should see a big price drop in the next two years. Currently you can a great deal on a 2018 Jeep wrangler, those are still sitting new on the lot.
If they want to move product, they should all be offering 0% financing in our current rate environment.
I was always a Mopar or Chevy guy, but when GM got the bailout we (family) lost about $300k in preferred stock.
Never buy another GM product again, and Mopar is questionable.
So far my truck has been great, but it’s a pump sucker, that’s for sure.
With six you get eggroll!.............
My neighbor's new specced out F250 was near $70k.
Yep, back up camera technology has to add $1,000 alone, and I can do without. Same for tire inflation sensors and so much more. No reason a decent new car shouldn't be under 20grand.
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