The 4th Gen is too Expensive... or maybe not?

[shane_th_ee]

TFL truck has a post up with the 1Q sales numbers for full size SUVs. Apparently, 2019 Q1 Expedition sales are up 61% compared to last year; enough to make a large dent in GM's full size SUV sales. Personally, I think the really interesting thing is that Expedition sales are up more than all the other guys' sales are down, which means the Expedition brought new buyers to the full size BOF SUV segment. Which I believe means, the millennials really are coming! The oldest millennials are just about old enough (39) to be at the point where their youngest kids are old enough that they can start to buy boats, travel trailers and horses.

And before anyone starts off on the "but they're all broke and jobless suffering under piles of students loans from their useless -studies degrees...", some of them went to engineering or medical school.

(And there are more millennials than baby boomers, so I expect to see increasing demand for BOF SUVs and single family homes for the next 6-10 years.)

 

[JExpedition07]

Perfect timing for GM and Ford on their new generations. I agree with you on many points, I think GM is going to reap more benefit than Ford on this one due to timing however.

 

[cmiles97]

It depends on the person. If they think the world will end in 12 years like one of our freshman congressman, they won't be purchasing any SUV. They'll just ride a train.

For me I'll only buy them used as these are the highest profit vehicles that Ford & Chevy make.

Did you ever think you'd pay $70K for any vehicle?

 

[Sgt Darkness]

Prior to 1965 VW Bugs ran on a six volt system with a generator. In 1965 they were converted over to a 12 volt system. That one change made the price go up to $1,999.00. People thought that was outrageous......lol

 

[1955moose]

Actually it was 1967 for the first 12 volt starting/charging system. In 1974 they finally went with a modern type alternator, replacing the slow charging Generators of pre 73 bugs/busses, and square backs. As you guys know I owned a 56 round window bug, back in the 70's. Only car I ever owned that didn't go, stop, or handle. It actually liked to roll over and play dead! Just like my lazy Golden Retriever!

Sent from my N9131 using Tapatalk

 

[jeff kushner]

The oldest millennials are just about old enough (39

Aren't most of them just leaving home?


lol- too easy.

Seriously though, you are observant.....

jeff

 

[Trainmaster]

My guess is that Ford is enjoying the debt economy while it can. High end stuff pushed on people without money is the most volatile part of the consumer economy. With car loans at record default rates, tightening credit and gas prices rising, Ford better have a Plan B in their back pocket for when this bubble hits the wall.

 

[cmiles97]

My guess is that Ford is enjoying the debt economy while it can. High end stuff pushed on people without money is the most volatile part of the consumer economy. With car loans at record default rates, tightening credit and gas prices rising, Ford better have a Plan B in their back pocket for when this bubble hits the wall.

No kidding. I saw this earlier today.

...Brace for $4 a gallon at the pump.

https://www.bizjournals.com/sanjose...-prices-on-the-rise-brace-for-4-a-gallon.html

 

[JExpedition07]

Trainmaster is right, I’ve been saying this for the last year +.

I paid $4.00/ gallon for regular 87 in Miami last week FYI. The nice thing is our Expeditions are pretty good on gas no matter which generation you have they all stay above 12 mpg at a minimum.

 

[Mean_Dean]

You have 8 - 10 year loans by the banks to thank for this, over-extend but it is OK because your payment is "low", not that 800 bucks a month is low or the fact that they will end up paying over 100K by time they pay the note off.