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In the world of $2500 DVD options.... Posted by Ari [Email]  (#2847) [Profile/Gallery]
(more from Ari) on Wed, 3 Aug 2005 06:20:37
In Reply to: $3.04 9/10s for premium unleaded credit price...., Mike Lynch  [Profile/Gallery]
, Tue, 2 Aug 2005 16:49:49
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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....
, Tue, 2 Aug 2005 16:49:49
, Thu, 4 Aug 2005 12:28:21
, Wed, 3 Aug 2005 13:57:07, Wed, 3 Aug 2005 11:32:58, Wed, 3 Aug 2005 06:20:37 <-- Viewing This Message, Thu, 4 Aug 2005 12:22:55
, Wed, 3 Aug 2005 09:16:56
, Wed, 3 Aug 2005 21:56:24, Tue, 2 Aug 2005 19:13:01, Tue, 2 Aug 2005 17:49:24
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