Luxury Car Owners Switching to Pickup Trucks

[SeaJay]

Originally Posted by Rmay635703
Originally Posted by SeaJay

I contend that the reason they are so profitable is because folks want them and are willing to Take out a loanat the max monthly payment they can afford for them, and that they are one vehicle type that in general, folks favor those made by the big 3 domestic manufacturers. Thus the manufacturers can charge a healthy premium when they sell so quickly.


Fixed it for you


That was a good fix. In general, the manufacturers who give the loan, or the banks/finance companies who are on the hook for the loan are fine with getting their money that way. They will take a hit from those folks that stop paying. But, those healthy margins & interest charges include a provision for those losses.

 

[MCompact]

Originally Posted by PimTac

In my world that is called buttin in. It's none of your business what I drive or anything regarding my financial status.

You have already been told nicely in this thread. Sometimes it is best to just eat the cookie.


I agree 100%. Nothing annoys me more than a peanut gallery of hand-wringing bed wetters who presume to tell others what they should drive and what they can afford. I could not care less what vehicle someone else wants to drive and/or what they paid for it. All I ask is to be accorded the same privilege.

 

[Mr Nice]

Debt keeps the economy growing.

Few folks in America have $50K + cash to purchase these trucks.

Last week I was at Chevy dealership picking up my new company vehicle and overheard salesman tell a couple (husband / wife ?) they offer 0% financing for 72 months on new Silverados.

With booming economy..... more people are willing to borrow $$$ to buy those fully optioned G&G trucks.

 

[JeffKeryk]

Personally, I feel debt is waaaay overused and gets people in debt.
There is good debt and bad debt.

Bad debt caused the 2007 financial crisis.

As others have posted, it's your choice.
Not owing anyone a nickel is a pretty good feeling.
Just my 2 cents.

 

[meep]

I usually avoid these threads like the plague. But here's my thing. Er'body seems to be judging er'body else.

Buy what you buy, reap what you sow. Save for your retirement. Pay your debts. If you make mistakes with your choices, I ask only that you do not expect or require me to pay for your mistakes. I may choose to, elect to, help someone with their mistakes, but I do not want it forced upon me.

 

[javacontour]

When I see the numbers of how many have not saved for retirement, or an emergency, or otherwise and compare it with my neighbors who likely make similar wages as I do but have much newer cars and boats and other toys, I wonder how many can really afford it.

My real concern isn't that they can or cannot afford it. It's what do-gooders will pledge even more taxpayer money to bail us out of the mess.

I"m all about freedom. But that has to include the responsibility to own the consequences for ones choices and the freedom for others who didn't make those choices to not be assigned responsibility to bail them out.

Freedom without responsibility ultimate takes freedom from everyone.

Originally Posted by spasm3
Originally Posted by tony1679
For the (6th?) time, I'm only trying to call out those who cannot afford these luxuries and buy them anyway. Which is realistically 4/5 people driving said vehicles. I can't make it any more clear...


I'd love to see the data showing 4/5 truck owners can't afford them. You know they repossess trucks if you can't pay for them.

 

[javacontour]

Originally Posted by meep
I usually avoid these threads like the plague. But here's my thing. Er'body seems to be judging er'body else.

Buy what you buy, reap what you sow. Save for your retirement. Pay your debts. If you make mistakes with your choices, I ask only that you do not expect or require me to pay for your mistakes. I may choose to, elect to, help someone with their mistakes, but I do not want it forced upon me.

 

[UberArchetype]

Originally Posted by meep
If you make mistakes with your choices, I ask only that you do not expect or require me to pay for your mistakes.

Or by way of the shared tax burden you imply "I" meaning "we," then yeah, right. Accountability? Seriously? That concept seems to be getting less-and-less recognized these days on many levels - not just financial responsibility. It's the relatively few running amok without regard to ethics and decency ruining it for everyone else.

 

[edyvw]

Last few neighborhood gatherings, main topic? Price of gas.

 

[meep]

Gas is cheap right now. I'm in favor of the local gas tax, which I will support with my own wallet. Roads and infrastructure need it. Nobody wants to go skydiving off a bridge.

 

[edyvw]

Originally Posted by meep
Gas is cheap right now. I'm in favor of the local gas tax, which I will support with my own wallet. Roads and infrastructure need it. Nobody wants to go skydiving off a bridge.

In Colorado Springs answer to bad roads: bigger truck with bigger wheels.
Colorado I think last year had best economy in the US. Unemployment is almost non existent and yet, only New Mexico in the West invest less per capita in the roads. But mostly it is driven by brilliant decision by voters in 1992 to support TABOR, which has tendency to bankrupt state every time recession hits.

 

[PimTac]

Originally Posted by meep
Gas is cheap right now. I'm in favor of the local gas tax, which I will support with my own wallet. Roads and infrastructure need it. Nobody wants to go skydiving off a bridge.




Do some research to verify that the gasoline tax is solely going to road infrastructure. In many places it is not. It goes into the general fund.

 

[Smokescreen]

This is only good news for people who buy used. Lux-type cars available for less...then pickups available for less later on.



Keep telling people to buy new so I can buy barely used at a fraction of the price.

 

[tony1679]

Originally Posted by javacontour

Originally Posted by meep
I usually avoid these threads like the plague. But here's my thing. Er'body seems to be judging er'body else.

Buy what you buy, reap what you sow. Save for your retirement. Pay your debts. If you make mistakes with your choices, I ask only that you do not expect or require me to pay for your mistakes. I may choose to, elect to, help someone with their mistakes, but I do not want it forced upon me.

At least some of us get it...

 

[SubLGT]

https://www.nytimes.com/2018/02/15/automobiles/wheels/luxury-trucks-suv.html

Quote
...When Lee Victorian was looking for an upscale car to complement his wife's BMW last year, he was leaning toward an Audi A6 — a sedan whose acceleration, refinement and dazzling array of advanced technologies, like automatic braking and radar-based cruise control, he found alluring. But what he drove off the lot was an entirely different kind of premium vehicle, and one more luxury buyers are choosing: a pickup truck. Mr. Victorian, a retired Michigan state trooper, bought a Raptor version of the Ford F-150.....With all those options, the sticker price came to about $80,000....

...."We are seeing it," said Tom Libby, an auto industry analyst at the research firm IHS Markit. "There is movement from luxury cars to luxury trucks."....

...With demand for cars shriveling, the Detroit three and even some foreign manufacturers acknowledge they are now losing money on many of the cars they sell. But a $60,000 truck can generate tens of thousands of dollars in operating profit...

... the priciest S.U.V.s and trucks are selling fastest. The high-end Lariat, King Ranch and Raptor models make up more than half of all F-150 sales, up from one-third a few years ago. Denali editions account for 29 percent of GMC's sales, up from 21 percent....

...Out in Tacoma, Wash., Gary Gilchrist sees the trend just about every week at his GMC dealership. "We've been taking in Lexuses on trade-ins, BMWs," he said. This month, he said, a customer turned in a 2012 BMW 550i and bought a $71,000 GMC Sierra Denali pickup. "People used to want German cars for the image factor," Mr. Gilchrist said. "Now, if you have a Denali, you get that. People turn their heads to look."...

 

[SubLGT]

Ford and GM are already planning for electric luxury pickup trucks.

https://www.thedrive.com/news/26168/gmc-considering-electric-sierra-pickup-to-rival-ford-150-ev

Quote
.... Ford is working on a battery-electric F-Series truck to convert the masses. Tesla is allegedly developing an uber-futuristic take on utility. Then, to combat the efforts of established auto giants, startups like Rivian are promising world-beating performance. Now you can add General Motors to the potential all-electric pickup train as GMC is considering just that for their Sierra truck lineup...

...It would make sense to see a Sierra receive the battery-electric treatment first for a few reasons. One, the pickup trucks likely have the highest margins in the GMC lineup. Also, the GMC lineup, in general, is considered the luxury selection of General Motors' trucks, meaning they command a premium and that buyers are comfortable paying more for more advanced features....

...David Cole, director emeritus of the Center for Automotive Research in Ann Arbor told CNBC basically that very thing. "It's always a mistake to introduce a new technology on a lower-priced product," said Cole. "You have a better opportunity to cover costs if it's on a high-end vehicle."....

 

[Jarlaxle]

Originally Posted by JeffKeryk
Personally, I feel debt is waaaay overused and gets people in debt.
There is good debt and bad debt.

Bad debt caused the 2007 financial crisis.

As others have posted, it's your choice.
Not owing anyone a nickel is a pretty good feeling.
Just my 2 cents.


That. Debt free is wonderful.

 

[Jarlaxle]

Originally Posted by PimTac
Originally Posted by meep
Gas is cheap right now. I'm in favor of the local gas tax, which I will support with my own wallet. Roads and infrastructure need it. Nobody wants to go skydiving off a bridge.




Do some research to verify that the gasoline tax is solely going to road infrastructure. In many places it is not. It goes into the general fund.


Less than half is the norm in this area. The rest is used as a slush fund.

 

[Andrew1972]

Originally Posted by Jarlaxle
Originally Posted by JeffKeryk
Personally, I feel debt is waaaay overused and gets people in debt.
There is good debt and bad debt.

Bad debt caused the 2007 financial crisis.

As others have posted, it's your choice.
Not owing anyone a nickel is a pretty good feeling.
Just my 2 cents.


That. Debt free is wonderful.


And key element to becoming wealthy no matter what your income is.

 

[CKN]

Originally Posted by madRiver
Originally Posted by Jarlaxle
Originally Posted by JeffKeryk
Personally, I feel debt is waaaay overused and gets people in debt.
There is good debt and bad debt.

Bad debt caused the 2007 financial crisis.

As others have posted, it's your choice.
Not owing anyone a nickel is a pretty good feeling.
Just my 2 cents.


That. Debt free is wonderful.


And key element to becoming wealthy no matter what your income is.


You can't buy properties to be used for rentals-debt free-so you can retire at 55.

Ask me how I know..........