2019...

[deweysmith]

I would argue it's the opposite. Sales were lower before they started aggressively marketing the higher trims. They need the profit margin to be wider because they sell fewer year-over-year.

The reality is it's probably a bit of both, a chicken-and-egg problem. People buy them less for a number of reasons (gas probably being the primary) and so they have to price them higher in order to make the smaller manufacturing run profitable. The higher base price puts them in the more luxe buyer's bracket, which is even more profitable, but will eat into sales by pricing "previous buyers out," making the high-end trim even more necessary.

It's a very interesting economics problem.

 

[JExpedition07]

I would argue it's the opposite. Sales were lower before they started aggressively marketing the higher trims. They need the profit margin to be wider because they sell fewer year-over-year.

The reality is it's probably a bit of both, a chicken-and-egg problem. People buy them less for a number of reasons (gas probably being the primary) and so they have to price them higher in order to make the smaller manufacturing run profitable. The higher base price puts them in the more luxe buyer's bracket, which is even more profitable, but will eat into sales by pricing "previous buyers out," making the high-end trim even more necessary.

It's a very interesting economics problem.

You make some very good points.... but the high prices do cut into sales number by a lot. But if you do look at sales I think you are correct on the gas, if you look at gas price trends sales always go back up when gas is low on these.

I think ford may see an increase for 2019 and here is why:

Cutting into GM market share, and heck maybe that’s the plan, take some from them, and give up many of fords old primary buyers. The gain from GM and others market share may well be worth it for them.

 

[shane_th_ee]

You do realize they have throttled production of Expedition recently right? They are making less and less and ness and less parts are available. Of course the dealer is going to tell you it’s just because they are so great and they sell so many and not that it’s an internal supply problem. My inner economist tells me Not many have $70-80,000 to drop on a truck so naturally sales aren’t rising very high when you price most of your previous buyers out of the segment.

You know, you got me thinking... These are basically luxury vehicles with significant upgrades (top engine only, independent rear suspension, etc) over the F-150 on which it's based. I wonder how much higher the price spread needs to be for Ford to consider cheap 8 passenger conversion of an F-150. You know, take a stripper F-150 crew cab, cover the back, and throw in a third row. Change nothing about the suspension from the F-150, no power lift gate, no power rear seats, only offer it in the lower trims and without the 3.5L eco-boost...

 

[Garrett]

You do realize they have throttled production of Expedition recently right? They are making less and less and ness and less parts are available. Of course the dealer is going to tell you it’s just because they are so great and they sell so many and not that it’s an internal supply problem. My inner economist tells me Not many have $70-80,000 to drop on a truck so naturally sales aren’t rising very high when you price most of your previous buyers out of the segment.

This is precisely what my dealers are telling me...they are selling so fast they can't keep them on the lot. One guy told me he doesn't expect Lincoln to offer any incentives until the end of the year!!!

It's definitely strange, as all other new models are widely available. The Infiniti dealer has over 30 18 QX80s on their lot.

 

[powerboatr]

i am not so sure they are selling them like hotcakes..at least around here anyway .i think its more like production is not up to full speed yet.
dealers around here have many on order, but only one or two actually have showed up.
BUT the ones that did show up sold relatively quick, less than 2 weeks.
the new body on the f150 was the same way, a few showed up and it took months to actually see more than two on a lot.
we are just now in feb, and they started production soft production in aug, and ramping up ever since. 1.3 billion invested at KTP for expy production and another 900 million for the navigator. i imagine by late april there will be lots around to look over side by side and really compare.
i hate only seeing one model and one wheel base. it makes it hard to really see what your getting.
my dealer usually had 10 to 15 expy and navigators on the lot. he has one today.