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Sedans Luxury Lounge
21396 messages, Last post on Nov 26, 2009 at 9:00 AM
You are in the Sedans Forum. Your Hosts are pat & karens
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diesel vs. gasoline in any barrel of crude oil. The proportion can be jiggered up or down a few percent, but the split has to be designed into the refinery. U.S. refineries favor gasoline, and we all know how many new ones have been built over the past several decades. The major point is that you're going to get some amount of gasoline, whether you want it or not, from a barrel of oil, from which you'll also get the diesel/jet A/fuel oil that's of considerably more value worldwide. Besides which, diesel is used by the railroads, the trucking industry and construction; those demands tend to be much less price-flexible than that for gasoline. Price on diesel (or jet A) goes up, you feed it through to the customers. Price on gasoline goes up, people drive less, demand drops. Huge difference. Those two things, plus the recent (~2 yrs ago) low-sulfur requirement, have driven the cost of diesel above that of gasoline, perhaps to stay. Perhaps not. As to the earlier point regarding fuel oil prices driving diesel, I'm not so sure. Airlines, railroads & truckers can go many hundreds (or thousands) of miles to buy fuel at the most attractive prices. I still remember waiting to get to LaGrange, TX, so I could fill my 150 gal tanks with 44 cent per gallon fuel (this was in '78), as opposed to spending all of 56 cents a gallon elsewhere. Diesel is the worthwhile commodity. Gasoline is a waste product. The world market appears to agree. |
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Apparently the worst hit part of the luxury segment will be entry level luxury cars (BMW 3, Lexus ES, MB C Class). Expect far worse for the year 2009. The biggest hope for BMW during 2009 is pre-owned sales. Does anybody want to buy a pre-owned 07 BMW 335i from me? But when purchasing my BMW 335i please dont ask me for my repair records since I dont have enough binders to keep track of them.  http://www.bloomberg.com/apps/news?pid=20601100&sid=aE7P22QvyOuI&refer=germany
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Replying to: dewey (Jan 09, 2009 6:27 pm) I believe that this has more to do with the economic and demographic changes over the past 15 years than anything else. Car enthusiasts like us will always make certain sacrifices to drive what we want if things are tight but most of the expansion of the premium market has been with people who were badge buyers in my opinion. Look around your neighboorhoods or comunities, how many soccer mom's are driving X3's or RX's because of the badge? Most of these folks are not premium car enthusiasts but they have played a big role in this market expansion. Even younger people right out of college have been able to lease a 3-series for $300/mo due to BMW's residual funding, many years ago the same type of kids coming out of colleges were happy to get a Camaro or an Accord. The sudden shrinking of this previously available market may cause the top players (MB, BMW, Audi, Lexus, Jag) to really work hard on their product and keep purchase transaction prices in line to fight for share of a smaller market. This may be a benefit to guys like us who are always going to buy cars in this class. My theory may not hold 100% but it will be interesting to watch how this economic downturn affects this market, we may really see more competition for our dollar.
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Yes that's true only the drop-top. But knowing Tagman that may matter since he prefers drop tops. Ah, how do I envy all you *&^%&$%$s who enjoy sunshine 365 days a year. 
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Replying to: ljflx (Jan 09, 2009 5:20 pm) I'll research the web site for you (from the BMW forum) with the recommended info for you. It was a while back. Regards, OW
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Replying to: circlew (Jan 10, 2009 7:36 am)
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Replying to: ljflx (Jan 10, 2009 8:21 am) They perform every bit as well as the factory pads but they shed next to no dust. Before installing these, I'd clean my wheels once or twice a week. Now I get down on my knees & clean my wheels once a year - even though they aren't as dirty as they used to be after just a week with the old pads. My only regret is that I didn't buy them years earlier.
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Replying to: hpowders (Jan 08, 2009 7:13 pm) I'm a brand new owner of a Scott addict R4. $3,899.99 retail, for the 08 closeout price of $2700.00. sub 17" lbs
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Replying to: jimbres (Jan 10, 2009 9:24 am) Mercedes-Benz SUV Here is the main link so you can compare different brands. Brands Sounds like the ticket to clean wheels year round! Regards, OW |
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Replying to: clembo (Jan 10, 2009 4:12 am) I agree with everything with what you had posted. Except I dont think we will see great price competition in the future as we did in the past. The following may sound like a contradiction ....During hard times it's best to focus on selling higher priced goods to fewer people. Despite the contradiction that is what the luxury business is all about--EXCLUSIVITY. Cheap credit made affordable leasing progammes possible for luxury auto marques . Unlike the past exclusive luxury marques started catering to the mainstream middle classes. But now that the credit tap has been turned off this low priced INCLUSIVITY will be replaced by high priced EXCLUSIVITY. Thanks to this new period of Economic De-Leveraging the BMW 3 Series and the MB C Class will continue to be sold but at a far lower volumes and at far higher prices /lease rates than what had existed in the past. |
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