Economy of Automotive

[moneymaker]

Have no connection to automotive industry (disclaimer), but I’m amazed at how high prices are compared to over supply and lower demand. When the market tanked today Ford stayed relatively strong. The only country where their sales is going up is Brazil, a relatively small market for them. I’m not planning on buying any time soon, unless the wife decides she wants a Tesla again. Don’t know too many people that are looking to buy, so I see discounts coming to the consumer in the next 2-3 quarters. Anyone bought lately?

Did buy some QCOM today to add to current shares, Ex-Dividend date is Wednesday.

[The-Shoveler]

IMO what’s undeserved in the US market is a “cheap” no frills work truck.

First company who comes out with a “small” pick-up (4 or 6 banger) win’s…

I see so many 20-30 year old small trucks people are keeping alive because they cannot afford a 35K and over new work truck.

[spdrun]

Yet, will people actually walk the walk and buy such a truck, or will they prefer to buy used? I think Mahindra tried to enter the US market with a basic truck and failed. Americans love their comforts and gadgetry.

[The-Shoveler]

“Mahindra” ?

Never heard of it.

I think it would need to be real real inexpensive or at least from a known US player.

That’s how most newcomers need to enter th e market (well unless they are tesla LOL).

Think VW bug.

[Coronita]

I think you’re not thinking that a typical american consumer. For a typical american consumer, the actual MSRP of the car does not nearly matter as much as “what are the payments I need to make to be able to drive that car?”

Most people do not buy a new car outright. Most people, if they want to obtain a new car, they either

1) Lease
or
2) Take out a loan to buy

where #1 is more popular these days….And for a lot of people, who insist on always have the latest and greatest, it makes sense…Especially when it comes to the more luxury brands, most of these cars depreciate like crazy, are a PITA to maintain…So for many many people, it’s not about an entry level BMW 3 series starts at $40k these days. It’s about “what is my monthly payment going to be?”

As long as people can make the monthly payment and as long as they still have their job, and as long as gas prices stay cheap, people won’t care about MSRP.

What’s going to hurt automakers, are the ones that make sketchy leases/loans to subprime borrowers who then can’t make the payments. A lot of times, automakers get greedy and do just that to prop up sales numbers. Mitsubishi did just that and got into a lot of trouble. Some of the big 3 US companies are probably doing that right now. Ford got into a world of hurt doing that before Mullaly took over and cleaned it up, and sold of Mazda, Jaguar, etc,etc,etc.

I think it will be interesting to see what happens when all these US car companies who are focusing on building trucks/suvs see demand fall off the cliff due to fuel costs…And this time, they won’t have a small car/sedan portfolio left.

Me? I would never take out a loan to buy a car or even lease unless a company was paying for it. If I can’t buy a car with cash, I won’t buy.

[The-Shoveler]

“focusing on building trucks/suvs see demand fall off the cliff due to fuel costs…”

Just be glad you don’t live in France lol.

I think I remember 5 year old big trucks etc.. going for 1/5 the purchase price when gas got to 5 dollars a gallon.

Maybe that is what I need to do (I only need the truck for short local trips mostly, other than that I drive my small 4 banger getting >35 MPG).

One day I want to buy a cheap used Tesla and replace the batteries with hopefully cheap replacements.

[Coronita]

[quote=The-Shoveler]”focusing on building trucks/suvs see demand fall off the cliff due to fuel costs…”

Just be glad you don’t live in France lol.

I think I remember 5 year old big trucks etc.. going for 1/5 the purchase price when gas got to 5 dollars a gallon.

Maybe that is what I need to do (I only need the truck for short local trips mostly, other than that I drive my small 4 banger getting >35 MPG).

One day I want to buy a cheap used Tesla and replace the batteries with hopefully cheap replacements.[/quote]

I remember buying my BMW X5 (that has 6 cylinders) new for less than the cost of a Ford Edge FWD only. Lol….
People asked me “why did you waste your money on a SUV from BMW when you could have paid a lot less for something like a Ford Edge”…. And I said, “no I couldn’t have. I bought the cheaper of the two…” Left their head scratching…lol. Funny part is the MPG between the two weren’t that different.

I remember buying my dad’s BMW 550 with a TTv8 with a $10k cash discount. Lol x2.

Surprisingly, knock on wood, my X5 has been fairly reliable… Oil, brake fluid , brake rotors/pads, and tires..

[FlyerInHi]

[quote=The-Shoveler]
Just be glad you don’t live in France lol.
[/quote]

The French program to get consumer to transition to electric is actually very generous and fair. It would have jumpstarted Renault Nissan. But the French deplorables started burning and rioting.

Don’t cry when China dominates electric and autonomous cars. It’s our game to lose for lack of policy

[spdrun]

Fuel prices are a very small part of the French riots. They’re much more socialistic than that — protesting proposed cuts to services like trains, education, and health care in more rural areas/secondary towns. Macron is a neocon bankster. The Yellow Vests are closer to Occupy Wall Street than to the Tea Party.

[barnaby33]

If you don’t drive much, then why does mileage matter? I have an 18 year old 4Runner that if it gets 18 MPG on the highway, I’m lucky! However I put 7-10k a year on it, so mileage isn’t really that important.
Josh

[FlyerInHi]

NYC has anti idling law to reduce pollution. Snitches get 25% of the fines. On guy made $10k a year.

Electric is the future for cities.

https://nypost.com/2018/07/06/nyc-will-pay-you-big-bucks-for-ratting-out-idling-trucks-buses/

[evolusd]

[quote=The-Shoveler]IMO what’s undeserved in the US market is a “cheap” no frills work truck.

First company who comes out with a “small” pick-up (4 or 6 banger) win’s…

I see so many 20-30 year old small trucks people are keeping alive because they cannot afford a 35K and over new work truck.[/quote]

What about the Nissan Frontier?

[spdrun]

Cutaway chassis (GMC, Ford Transit, Sprinter, or Promaster) with a pickup bed. Shorter, cheaper, and probably more rugged than most pickups in 2019.

[The-Shoveler]

Still hard to find a New Frontier under 20K even though MSRP is under 20K.

Would be better if under 16K.

[Author]

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