what happens to these huge suv and pick up trucks that won’t sell on new car dealers lots? regards, steve bannan
They will eventually be sold to people who really need them.
For a really, really good price.
A buyer’s market fersure just like houses now.
Many of them may even end up being auctioned.
The same thing that happened to the Dynosars!
They will become extinct!
During the Great Depression, many used luxury cars like Duesenbergs, Pierce Arrows, Packards and Cadillacs were sold for next to nothing by their owners in order to raise cash. We may soon see the same thing as cash-strapped owners need to dump their gas guzzlers. Some of those cars that were sold for a song back in the ‘30s were just parked in the buyers’ garages until better times returned, when they were able to sell them for a higher price. History does have a way of repeating itself.
There is still a huge market for these vehicles in the Middle East, Venezuela, and certain African countries. GM, Ford and Chrysler are virtually shutting down production of these vehicles, whatever the dealers can’t take will be exported. Those on the dealers lots will be deeply discounted. At the end of the model year, they will be discounted even more! The stock will be gradually depleted.
I have several relatives in farming and contracting; they will be pleased to upgrade their vehicles at low cost. In addition, there will be some retirees, who drive very little, who will want a big vehicle at a deep discount.
A watched an auction the other day; a 3 year old Ford extended cab 4X4 got a bid fo all of $2600!! The owner decided to keep it.
To be fair you should have included Toyota.
If you do some simple arithmetic you can see that some people that need a second vehicle and don’t put many miles on it are better off buying an inexpensive land yacht (or land tuna boat if they sometimes need to haul stuff or a lot of people).
5000 miles/year at 20 mpg/$4 per gallon will cost you 1000 in fuel
5000 miles/year at 35 mpg/$4 per gallon will cost cost $571 in fuel
If the vehicle costs you $3000 less you can drive for 7 years just to make up the difference not counting what the money could be doing in the meantime. Now take into consideration what kind of land dingys get 35 mpg and adjust accordingly for a different vehicle. Adjust for mileage. At 10,000 miles per year you take 3.5 years to make up the difference. Maybe with that and $5 gas and you can reasonably switch to a more “efficient” vehicle.
Hmm, maybe I will sell my daily-driver sedan and buy that F150 sitting there with a “for sale” sign on it. If I invest the money I make, I will be ahead 5 years from now.
This is just one example of what mass hysteria can do to markets. A little ignorance mixed too little thought…
The price drops until they are sold.
When Ford came out with the Model “A”, the thousands of Model “T” at dealerships could not be sold at any price…Henry took them back and shredded them, thousands of brand new Model “T”'s…
Yes, Toyota is converting the Tundra plant to build Prius models in the US starting in 2009. The Toyota production system allows for rapid changeover between models. They pushed their gas guzzlers as long as the market was there, but have a whole range of sensible cars up there sleeve to produce when to opportunity presents itself.