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Pain Point? - READ ONLY

60 messages,  Last post on Dec 12, 2008 at 3:32 PM

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What is this discussion about? Automotive News, Car Buying, Fuel Efficiency (MPG), Coupe, Hatchback, Truck, Sedan, SUV


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#2 of 60
Re: Pain Point? [pf_flyer] by kdhspyder
Oct 03, 2007 (2:19 pm)

Replying to: pf_flyer (Oct 02, 2007 5:01 am)

I think the quick retreat of fuel pricing after the Katrina spike gave some owners and buyers hope that fuel would stay under $2/gal. Now that it's settled in the $2.50-$3.50 range lots of buyers are actively ignoring the gas guzzlers.
 
I think it's been tipped as you say but those that have such vehicles are keeping them for the times that they are needed but picking up additional vehicles for everyday use. Sales of new BOF SUVs are down everywhere from 10-30%.
 
A lot of these vehicles may disappear as the time comes to renew them.
#3 of 60
Casual glance by pf_flyer HOST
Oct 03, 2007 (2:44 pm)
If you take a look at the car dealers, at least around here, most of the cars, new and used, displayed prominently for easy viewing from the road are larger vehicles.
 
Just a casual observation
#4 of 60
Re: Casual glance [pf_flyer] by kdhspyder
Oct 03, 2007 (2:59 pm)

Replying to: pf_flyer (Oct 03, 2007 2:44 pm)

The profit is still in the big vehicles so it makes sense to promote them. But in the same way that bread, milk, eggs and OJ are in the far corner of a supermarket it makes sense to keep the high margin products in the customer's eye to make them walk the aisles to find the basic necessities.
#5 of 60
Re: Pain Point? [pf_flyer] by volvomax
Oct 03, 2007 (3:41 pm)

Replying to: pf_flyer (Oct 02, 2007 5:01 am)

I used to think so, but maybe not.
Europeans routinely pay more for gas than Americans do.
They still sell a fair number of big cars, and SUV sales are rising there.
They also sell alot of small cars too, so maybe the tipping point is $5-6.00/gal which has been the traditional European price point.
#6 of 60
Re: Pain Point? [volvomax] by blufz1
Oct 05, 2007 (9:05 am)

Replying to: volvomax (Oct 03, 2007 3:41 pm)

Buying behavior was changing at $3 but I would say $4 is a significant behavior changing pain point. A pain point a la 80's where there is a sea change in buying behavior. Don't get caught in a Guzzler resale wise.
#7 of 60
Diminishing pain? by pf_flyer HOST
Oct 05, 2007 (10:41 am)
Remember that from $1 to $2 looked like a 100% increase(igoring inflation)
 
$2 to $3 is only a 50% jump
 
$3 to $4 is only 33%
 
So while each level is $1, the underlying increase in pressure can actually seem to be less to most folks.
#8 of 60
Re: Diminishing pain? [pf_flyer] by blufz1
Oct 05, 2007 (4:55 pm)

Replying to: pf_flyer (Oct 05, 2007 10:41 am)

Appreciate your point but look at the gross dollar difference. 15000/20=750 g x $4= $3000 a year for gas!. At 40 mpg you could save $1500 per year.
#9 of 60
Pain Point by guss
Oct 05, 2007 (5:11 pm)
The price of gas may not be so much the problem but if we start to see lines like we saw in the 70's and 80's.
 
I don't know if it could happen today, but if you were a driver back then , you remember the pain on sitting in line on you odd or even number day.
#10 of 60
Re: Casual glance [kdhspyder] by gagrice
Oct 05, 2007 (9:03 pm)

Replying to: kdhspyder (Oct 03, 2007 2:59 pm)

Big vehicles are a bargain right now. I have one Toyota dealer down $9k from MSRP on a Sequoia limited 4X4. It may be the one I buy. Still looking for the right color.
 
If I was driving as much as you I would probably have a Jetta TDI. For me $5 per gallon gas and 15 MPG is not even a factor in my budget. My water bill is higher than my gas bill each month. We will run out of water before we run out of fossil fuel. I am going to ride in comfort. I don't plan on leaving a fortune to my children. If they get a $1000 when I die it will be more than I ever inherited.
#11 of 60
Re: Diminishing pain? [blufz1] by dave8697
Oct 06, 2007 (1:43 pm)

Replying to: blufz1 (Oct 05, 2007 4:55 pm)

I ccould drive a Mazda3 and get to work and back in 2.7 gallons. I could drive an ext cab 4x4 and use 5 gallons.
I end up parking the 4x4 and using a 3.8 L car that needs 3.1 gallons. The car was purchased for $1k more than a year's gas use of the truck. That was about $15000 less than the cost of a new Mazda3 would have been with tax and interest. I got 90% of the efficiency difference without the huge outlay. With a car that uses 3.1 gallons instead of one that uses 2.8 gallons a day to go to work, what price change in gas will drive me to PAIN? The savings that 40 mpg offers comes with other discomforts. The savings from an i4 over an efficient V6 is barely more than a dollar a day at $2.75 a gallon gas. With sales tax of $1100 for any new car, that's almost 1100 days just to recoup the sales tax. I know keeping a 4x4 around for weekend errands is costly but I kissed that money bye when I bought it. What I could recoup by selling or trading it is barely over half of what I bought it for. The majority of that loss has already happened.
 
The pain was answered with the jump from 16 mpg to 29 or 30. That was from V8 to V6. The pain from 30 to 40 is only a 33% reduction in fuel cost. After the 100% from '03 to '07, getting back 33% of that with the convenience of a 40 mpg car doesn't seem so improtant. There in no room in the back seat of any 35 or 40 mpg car.

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