Gas Prices and other factors affecting Temecula.

[Coronita]

As far as gas prices, since people are walking away from their overpriced homes that have lost significant value that they can't afford, do you think since their credit is already marred, that they will be walking away from all those big gas guzzling SUVs? I mean, that's got to be hurting about now. Payments, insurance, and gas. They can't sell it. No one wants to buy those gas hogs. Trade-in is almost 1/2 what they paid a year ago. SUVs are not moving at dealers. Looks like an SUV cemetary.

 

There were stories of people upside-down on SUV loans were setting them on fire in L.A. to get out of the loan via insurance payments. 

 

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—– Sour grapes for everyone!

[hipmatt]

Wow, I can’t believe I am the only person seeing or hearing about slowdowns in business around Temecula. Not only do businesses seem slow, but traffic seems down too.

The inside of Costco will always stay busy, maybe even more so in tough times due to the fact that they sell mostly the staples of life in bulk and at reduced costs. It makes sense for people to go buy their milk, sodas, water, eggs, soup, fruits, veggies, bread, soaps, paper goods, and of coarse gas at Costco. A disciplined family can shop at Costco and make their money go farther here than most anywhere else. However there are area of Costco that are slow and thats all I’m pointing out. Electronics sales are way own, and maybe tire sales are slowing. It makes sense as gas prices rise, that less people will be driving alone.

[hipmatt]

Wow, I can’t believe I am the only person seeing or hearing about slowdowns in business around Temecula. Not only do businesses seem slow, but traffic seems down too.

The inside of Costco will always stay busy, maybe even more so in tough times due to the fact that they sell mostly the staples of life in bulk and at reduced costs. It makes sense for people to go buy their milk, sodas, water, eggs, soup, fruits, veggies, bread, soaps, paper goods, and of coarse gas at Costco. A disciplined family can shop at Costco and make their money go farther here than most anywhere else. However there are area of Costco that are slow and thats all I’m pointing out. Electronics sales are way own, and maybe tire sales are slowing. It makes sense as gas prices rise, that less people will be driving alone.

[hipmatt]

Wow, I can’t believe I am the only person seeing or hearing about slowdowns in business around Temecula. Not only do businesses seem slow, but traffic seems down too.

The inside of Costco will always stay busy, maybe even more so in tough times due to the fact that they sell mostly the staples of life in bulk and at reduced costs. It makes sense for people to go buy their milk, sodas, water, eggs, soup, fruits, veggies, bread, soaps, paper goods, and of coarse gas at Costco. A disciplined family can shop at Costco and make their money go farther here than most anywhere else. However there are area of Costco that are slow and thats all I’m pointing out. Electronics sales are way own, and maybe tire sales are slowing. It makes sense as gas prices rise, that less people will be driving alone.

[hipmatt]

Wow, I can’t believe I am the only person seeing or hearing about slowdowns in business around Temecula. Not only do businesses seem slow, but traffic seems down too.

The inside of Costco will always stay busy, maybe even more so in tough times due to the fact that they sell mostly the staples of life in bulk and at reduced costs. It makes sense for people to go buy their milk, sodas, water, eggs, soup, fruits, veggies, bread, soaps, paper goods, and of coarse gas at Costco. A disciplined family can shop at Costco and make their money go farther here than most anywhere else. However there are area of Costco that are slow and thats all I’m pointing out. Electronics sales are way own, and maybe tire sales are slowing. It makes sense as gas prices rise, that less people will be driving alone.

[hipmatt]

Wow, I can’t believe I am the only person seeing or hearing about slowdowns in business around Temecula. Not only do businesses seem slow, but traffic seems down too.

The inside of Costco will always stay busy, maybe even more so in tough times due to the fact that they sell mostly the staples of life in bulk and at reduced costs. It makes sense for people to go buy their milk, sodas, water, eggs, soup, fruits, veggies, bread, soaps, paper goods, and of coarse gas at Costco. A disciplined family can shop at Costco and make their money go farther here than most anywhere else. However there are area of Costco that are slow and thats all I’m pointing out. Electronics sales are way own, and maybe tire sales are slowing. It makes sense as gas prices rise, that less people will be driving alone.

[SDHousehunter]

For the credit conscious consumer:

It may make more sense to keep your depreciating SUV and bite the bullet rather than repo and pay higher interest rates.

Unlike housing, auto loan rates can hit 24% for the most credit poor borrowers.

Chances are is that if you do the math it is a wash or near wash to repo and purchase a more gas friendly vehicle. Does the 16% interest spread incraese on a 20K vehicle for 5 years make up for the depreciation? Is it worth it having a repo on your report for 7 years which will keep you in high interest rates even after your loan is paid off?

I think a proper cost analysis has to be done.

For the poor credit or no credit consumer:

The poor and undocumented will repo because they have nothing to lose as they are likely to be charged the same high interest rate no matter what vehicle they drive. All that matters for them is that they have enough down payment so that the lender won’t lose if the have to repo and sell the vehicle and off they go.

From the dealer perspective:

New Dealers have no alternative other than dumping their SUV inventory to anybody that will take it and focusing on new vehicles that sell. Unless gas prices change the franchise SUV dealer is screwed. His only hope is that his used inventory sales can cover the loss. Due to heavy competition from the used dealers (independents, Carmax) that possibility is unlikely.

Used Dealers are much more flexible than the new and their money is made buying cheap and selling high. Also, they can make points on the interest much more easily due to the abundance of interest charged. They do not have the overhead costs as the New Dealers and therefore can sell vehicles cheaper due to their lower overhead requirements.

Used Dealers will buy these depreciated vehicles dirt cheap at auction and reselling them at attractive prices when they are more cost effective than buying smaller vehicles. Sooner or later these gas hogs will be so cheap that people will pay the gas. Those dealers who have huge SUV inventories on lines of credit are screwed. The one who have bought cash can liquidate, take the loss and move on.

Like housing, cash is king in the auto business.

Side note #1 One dealer friend said to me, “The reason that SUVs will not go away is because large families need vehicles that can transport the whole family. Aside from the Dodge Caravan, how do you and the wife take five kids to grandmas in a Chrysler Sebring? You can’t. And seeing that much of our California economy is supported by communities with high birth rates we will continue to have a need for these vehicles

Side note #2 I leased for my wife a Lexus. Gas is expensive and payment is about $625. Do I regret it, not one bit. Although a smaller car is more affordable I have to remember that this vehicle carries my most precious cargo (wife, kids) with rear airbags and all the protection. That is worth a couple hundred bucks a month to me. I would rather not eat out at restaurants than lower the safety of my family. To me a SUV makes sense.

[SDHousehunter]

For the credit conscious consumer:

It may make more sense to keep your depreciating SUV and bite the bullet rather than repo and pay higher interest rates.

Unlike housing, auto loan rates can hit 24% for the most credit poor borrowers.

Chances are is that if you do the math it is a wash or near wash to repo and purchase a more gas friendly vehicle. Does the 16% interest spread incraese on a 20K vehicle for 5 years make up for the depreciation? Is it worth it having a repo on your report for 7 years which will keep you in high interest rates even after your loan is paid off?

I think a proper cost analysis has to be done.

For the poor credit or no credit consumer:

The poor and undocumented will repo because they have nothing to lose as they are likely to be charged the same high interest rate no matter what vehicle they drive. All that matters for them is that they have enough down payment so that the lender won’t lose if the have to repo and sell the vehicle and off they go.

From the dealer perspective:

New Dealers have no alternative other than dumping their SUV inventory to anybody that will take it and focusing on new vehicles that sell. Unless gas prices change the franchise SUV dealer is screwed. His only hope is that his used inventory sales can cover the loss. Due to heavy competition from the used dealers (independents, Carmax) that possibility is unlikely.

Used Dealers are much more flexible than the new and their money is made buying cheap and selling high. Also, they can make points on the interest much more easily due to the abundance of interest charged. They do not have the overhead costs as the New Dealers and therefore can sell vehicles cheaper due to their lower overhead requirements.

Used Dealers will buy these depreciated vehicles dirt cheap at auction and reselling them at attractive prices when they are more cost effective than buying smaller vehicles. Sooner or later these gas hogs will be so cheap that people will pay the gas. Those dealers who have huge SUV inventories on lines of credit are screwed. The one who have bought cash can liquidate, take the loss and move on.

Like housing, cash is king in the auto business.

Side note #1 One dealer friend said to me, “The reason that SUVs will not go away is because large families need vehicles that can transport the whole family. Aside from the Dodge Caravan, how do you and the wife take five kids to grandmas in a Chrysler Sebring? You can’t. And seeing that much of our California economy is supported by communities with high birth rates we will continue to have a need for these vehicles

Side note #2 I leased for my wife a Lexus. Gas is expensive and payment is about $625. Do I regret it, not one bit. Although a smaller car is more affordable I have to remember that this vehicle carries my most precious cargo (wife, kids) with rear airbags and all the protection. That is worth a couple hundred bucks a month to me. I would rather not eat out at restaurants than lower the safety of my family. To me a SUV makes sense.

[SDHousehunter]

For the credit conscious consumer:

It may make more sense to keep your depreciating SUV and bite the bullet rather than repo and pay higher interest rates.

Unlike housing, auto loan rates can hit 24% for the most credit poor borrowers.

Chances are is that if you do the math it is a wash or near wash to repo and purchase a more gas friendly vehicle. Does the 16% interest spread incraese on a 20K vehicle for 5 years make up for the depreciation? Is it worth it having a repo on your report for 7 years which will keep you in high interest rates even after your loan is paid off?

I think a proper cost analysis has to be done.

For the poor credit or no credit consumer:

The poor and undocumented will repo because they have nothing to lose as they are likely to be charged the same high interest rate no matter what vehicle they drive. All that matters for them is that they have enough down payment so that the lender won’t lose if the have to repo and sell the vehicle and off they go.

From the dealer perspective:

New Dealers have no alternative other than dumping their SUV inventory to anybody that will take it and focusing on new vehicles that sell. Unless gas prices change the franchise SUV dealer is screwed. His only hope is that his used inventory sales can cover the loss. Due to heavy competition from the used dealers (independents, Carmax) that possibility is unlikely.

Used Dealers are much more flexible than the new and their money is made buying cheap and selling high. Also, they can make points on the interest much more easily due to the abundance of interest charged. They do not have the overhead costs as the New Dealers and therefore can sell vehicles cheaper due to their lower overhead requirements.

Used Dealers will buy these depreciated vehicles dirt cheap at auction and reselling them at attractive prices when they are more cost effective than buying smaller vehicles. Sooner or later these gas hogs will be so cheap that people will pay the gas. Those dealers who have huge SUV inventories on lines of credit are screwed. The one who have bought cash can liquidate, take the loss and move on.

Like housing, cash is king in the auto business.

Side note #1 One dealer friend said to me, “The reason that SUVs will not go away is because large families need vehicles that can transport the whole family. Aside from the Dodge Caravan, how do you and the wife take five kids to grandmas in a Chrysler Sebring? You can’t. And seeing that much of our California economy is supported by communities with high birth rates we will continue to have a need for these vehicles

Side note #2 I leased for my wife a Lexus. Gas is expensive and payment is about $625. Do I regret it, not one bit. Although a smaller car is more affordable I have to remember that this vehicle carries my most precious cargo (wife, kids) with rear airbags and all the protection. That is worth a couple hundred bucks a month to me. I would rather not eat out at restaurants than lower the safety of my family. To me a SUV makes sense.

[SDHousehunter]

For the credit conscious consumer:

It may make more sense to keep your depreciating SUV and bite the bullet rather than repo and pay higher interest rates.

Unlike housing, auto loan rates can hit 24% for the most credit poor borrowers.

Chances are is that if you do the math it is a wash or near wash to repo and purchase a more gas friendly vehicle. Does the 16% interest spread incraese on a 20K vehicle for 5 years make up for the depreciation? Is it worth it having a repo on your report for 7 years which will keep you in high interest rates even after your loan is paid off?

I think a proper cost analysis has to be done.

For the poor credit or no credit consumer:

The poor and undocumented will repo because they have nothing to lose as they are likely to be charged the same high interest rate no matter what vehicle they drive. All that matters for them is that they have enough down payment so that the lender won’t lose if the have to repo and sell the vehicle and off they go.

From the dealer perspective:

New Dealers have no alternative other than dumping their SUV inventory to anybody that will take it and focusing on new vehicles that sell. Unless gas prices change the franchise SUV dealer is screwed. His only hope is that his used inventory sales can cover the loss. Due to heavy competition from the used dealers (independents, Carmax) that possibility is unlikely.

Used Dealers are much more flexible than the new and their money is made buying cheap and selling high. Also, they can make points on the interest much more easily due to the abundance of interest charged. They do not have the overhead costs as the New Dealers and therefore can sell vehicles cheaper due to their lower overhead requirements.

Used Dealers will buy these depreciated vehicles dirt cheap at auction and reselling them at attractive prices when they are more cost effective than buying smaller vehicles. Sooner or later these gas hogs will be so cheap that people will pay the gas. Those dealers who have huge SUV inventories on lines of credit are screwed. The one who have bought cash can liquidate, take the loss and move on.

Like housing, cash is king in the auto business.

Side note #1 One dealer friend said to me, “The reason that SUVs will not go away is because large families need vehicles that can transport the whole family. Aside from the Dodge Caravan, how do you and the wife take five kids to grandmas in a Chrysler Sebring? You can’t. And seeing that much of our California economy is supported by communities with high birth rates we will continue to have a need for these vehicles

Side note #2 I leased for my wife a Lexus. Gas is expensive and payment is about $625. Do I regret it, not one bit. Although a smaller car is more affordable I have to remember that this vehicle carries my most precious cargo (wife, kids) with rear airbags and all the protection. That is worth a couple hundred bucks a month to me. I would rather not eat out at restaurants than lower the safety of my family. To me a SUV makes sense.

[SDHousehunter]

For the credit conscious consumer:

It may make more sense to keep your depreciating SUV and bite the bullet rather than repo and pay higher interest rates.

Unlike housing, auto loan rates can hit 24% for the most credit poor borrowers.

Chances are is that if you do the math it is a wash or near wash to repo and purchase a more gas friendly vehicle. Does the 16% interest spread incraese on a 20K vehicle for 5 years make up for the depreciation? Is it worth it having a repo on your report for 7 years which will keep you in high interest rates even after your loan is paid off?

I think a proper cost analysis has to be done.

For the poor credit or no credit consumer:

The poor and undocumented will repo because they have nothing to lose as they are likely to be charged the same high interest rate no matter what vehicle they drive. All that matters for them is that they have enough down payment so that the lender won’t lose if the have to repo and sell the vehicle and off they go.

From the dealer perspective:

New Dealers have no alternative other than dumping their SUV inventory to anybody that will take it and focusing on new vehicles that sell. Unless gas prices change the franchise SUV dealer is screwed. His only hope is that his used inventory sales can cover the loss. Due to heavy competition from the used dealers (independents, Carmax) that possibility is unlikely.

Used Dealers are much more flexible than the new and their money is made buying cheap and selling high. Also, they can make points on the interest much more easily due to the abundance of interest charged. They do not have the overhead costs as the New Dealers and therefore can sell vehicles cheaper due to their lower overhead requirements.

Used Dealers will buy these depreciated vehicles dirt cheap at auction and reselling them at attractive prices when they are more cost effective than buying smaller vehicles. Sooner or later these gas hogs will be so cheap that people will pay the gas. Those dealers who have huge SUV inventories on lines of credit are screwed. The one who have bought cash can liquidate, take the loss and move on.

Like housing, cash is king in the auto business.

Side note #1 One dealer friend said to me, “The reason that SUVs will not go away is because large families need vehicles that can transport the whole family. Aside from the Dodge Caravan, how do you and the wife take five kids to grandmas in a Chrysler Sebring? You can’t. And seeing that much of our California economy is supported by communities with high birth rates we will continue to have a need for these vehicles

Side note #2 I leased for my wife a Lexus. Gas is expensive and payment is about $625. Do I regret it, not one bit. Although a smaller car is more affordable I have to remember that this vehicle carries my most precious cargo (wife, kids) with rear airbags and all the protection. That is worth a couple hundred bucks a month to me. I would rather not eat out at restaurants than lower the safety of my family. To me a SUV makes sense.

[Nor-LA-SD-guy]

I am not at home today so I don’t have the model number handy, it’s 25 cf though I remember that, it was on sale for $699.xx , Home Depot/:Lowes sell the same model for $999.xx , that’s maybe why they were so busy at pacific sales, it was a three day sale though, but maybe if you ask nice …

It is real stainless steel not the fake stuff, looks nice in the house and it seems to work so I am happy.

[Nor-LA-SD-guy]

I am not at home today so I don’t have the model number handy, it’s 25 cf though I remember that, it was on sale for $699.xx , Home Depot/:Lowes sell the same model for $999.xx , that’s maybe why they were so busy at pacific sales, it was a three day sale though, but maybe if you ask nice …

It is real stainless steel not the fake stuff, looks nice in the house and it seems to work so I am happy.

[Nor-LA-SD-guy]

I am not at home today so I don’t have the model number handy, it’s 25 cf though I remember that, it was on sale for $699.xx , Home Depot/:Lowes sell the same model for $999.xx , that’s maybe why they were so busy at pacific sales, it was a three day sale though, but maybe if you ask nice …

It is real stainless steel not the fake stuff, looks nice in the house and it seems to work so I am happy.

[Nor-LA-SD-guy]

I am not at home today so I don’t have the model number handy, it’s 25 cf though I remember that, it was on sale for $699.xx , Home Depot/:Lowes sell the same model for $999.xx , that’s maybe why they were so busy at pacific sales, it was a three day sale though, but maybe if you ask nice …

It is real stainless steel not the fake stuff, looks nice in the house and it seems to work so I am happy.

[Author]

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