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(Auto) AFFORDABILITY: THE NEXT FRONTIER.

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Wingnut:

FEBRUARY 12, 2019 AT 04:53PM
By Peter M. DeLorenzo

Detroit. Since we’re in the midst of a market frenzy that prizes circus wagon-sized pickup trucks and SUVs – and the massive profits that they’re generating – as a manufacturer it’s difficult to retain perspective. And it’s easy to see why.

After all, the average transaction price of a new pickup is around $44,000, and fully loaded luxury pickups regularly go for $70,000+, with full-zoot luxury SUVs pushing well into six figures. Those numbers are staggering, and the profits, as I said, are equally staggering. In fact, they’re addictive to the manufacturers.

The pickup truck/SUV sales juggernaut is powering Ford, GM and FCA to new levels of sustainability, at least in the short term anyway. Or, it can be looked at another way, unfortunately, because without the sheer earnings power derived from pickup trucks and SUVs, there is legitimate concern as to whether these companies would even be functioning today.

But then again, as I said last week, this current frenzy is not going to last. The automobile business is at its core a fashion business, and there will come a time when parade float-rivaling SUVs and pickups will fall out of favor. And when the pendulum swings back, it may not be because of rising fuel prices. Instead, it will probably be because the cost of these machines is rising faster than the market can keep up with.
http://www.autoextremist.com/current/2019/2/12/affordability-the-next-frontier.html

Fishrrman:
Who would pay $45-70,000 for a pickup truck?

I can see paying the lower amount for a work/business vehicle, but to be used as personal transportation?

I guess that's just me.

Wingnut:

--- Quote from: Fishrrman on February 18, 2019, 11:38:06 pm ---Who would pay $45-70,000 for a pickup truck?

I can see paying the lower amount for a work/business vehicle, but to be used as personal transportation?

I guess that's just me.

--- End quote ---

It is not just you.

EdJames:
Count me in as well.  IIRC about $20-25,000 is what I've paid long ago.

ABX:

--- Quote from: Fishrrman on February 18, 2019, 11:38:06 pm ---Who would pay $45-70,000 for a pickup truck?

I can see paying the lower amount for a work/business vehicle, but to be used as personal transportation?

I guess that's just me.

--- End quote ---

Around here, two groups. 1. Semi-retired with too much money. And 2. Young guys, 20ish, who get oil field jobs pulling in $150K as their first or second job and don't have any common sense. We even have a Chevy/Dodge dealer here who set up a whole specialty lot to customized trucks, where they take those $50K-70K trucks and customize them up to close to $100K*, and they pour off the lot every time the oil fields hire....

...then, the used car lots are full of repos whenever there is a oil down-turn...



...you can always tell the experienced oilfield guys from the kids. The experienced guys have good, 4WD trucks, jeeps, etc, but never brand new, and never customized up like that. They get a good 30K workhorse and keep it for a decade and 300K miles.



*Example, MSRP, $71,000- Customized up to $94,460.

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