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Crisis? What crisis? Fuel use rises, Escalade sales soar.

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Old May 15, 2006 | 03:35 PM
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Post Crisis? What crisis? Fuel use rises, Escalade sales soar.

Some of the best-selling rides on the road today are GM's trio of beefy new SUVs—the Chevy Tahoe, the GMC Yukon and that blingy 'Slade, which saw its sales surge 127 percent last month. Meanwhile, last year's "it" car, the hybrid, is becoming a harder sell.

For all their megawatt buzz, hybrids still account for just 1 percent of U.S. auto sales and are outsold by SUVs 23-1.

http://www.msnbc.msn.com/id/12777854/site/newsweek/

I'm totally surprised by this. I thought it would be the opposite. I guess it hasn’t hurt GM to not have a hybrid, but I still think they should get one out soon before it does.
Old May 15, 2006 | 03:40 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

Its been my understanding that our total economy is very stron even with gas price surges.
Old May 15, 2006 | 03:42 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

The whole notion of gasoline costing more having a significant impact on the sales of more expensive vehicles is blown way out of proportion.

The people who are buying these $40k and $50k+ vehicles really are not impacted financially by the price of gas in the slightest.

I even say that most people buying a car in the $30k's and even mid to high $20k's are not significantly impacted... at least not enough to buy a new vehicle with the biggest factor in the choice of vehicle being MPG.
Old May 15, 2006 | 03:43 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

Hybrids are too expensive for almost no fuel improvement. The hybrid tech was annoced hyping like 40-50 MPG, and then we get it and its like 2 MPG better.

If I needed a really fuel efficent(sp) car i'd be looking for one of those diesel VW beetles that got liek 40-46MPG.
Old May 15, 2006 | 05:06 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

This pretty well sums up why hybrids don't sell that well:

"Not a lot of people are jumping up to pay $3,000 extra for a hybrid," says Memphis Toyota dealer Kent Ritchey. "For $3,000, you can buy a lot of gas."
People shopping for an Escalade don't care about an extra $100-200 a month in fuel.
Old May 15, 2006 | 05:35 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

Originally Posted by Darth Xed
The whole notion of gasoline costing more having a significant impact on the sales of more expensive vehicles is blown way out of proportion.

The people who are buying these $40k and $50k+ vehicles really are not impacted financially by the price of gas in the slightest.

I even say that most people buying a car in the $30k's and even mid to high $20k's are not significantly impacted... at least not enough to buy a new vehicle with the biggest factor in the choice of vehicle being MPG.
BINGO! If you can afford an escalade you ain't worried about the price of gas. But...to the average Joe, it hurts.
Old May 15, 2006 | 06:04 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

I think it's going to have a major impact on the resale, though, as 2nd and third buyers are usually not as wealthy.
Old May 15, 2006 | 08:10 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

BOOYYAAAA...

just gotta think...Prius in an accident or an Escalade..yea...
Old May 15, 2006 | 09:35 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

Originally Posted by WERM
I think it's going to have a major impact on the resale, though, as 2nd and third buyers are usually not as wealthy.
Maybe, but I'm not sure the evidence supports it. In fact, 2005 SUVs seem to be holding a higher percentage of their residual value than 2005 cars.

http://www.edmunds.com/reviews/list/...9/article.html

http://www.cars.com/go/crp/buyingGui...uvResidual.jsp

A lot of people talk about residual value but I don't know of anyone that places a major emphasis on it when it comes time to purchase.
Old May 15, 2006 | 09:57 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

In addition to people buying expensive cars not being hurt buy gas prices...

People who drive older cars, which we'll assume are more ineffecient are more likely to get a new used car if they really need a gas sipper. So that group, which is probably everyone else, isnt impacting new cars much.
Old May 15, 2006 | 10:20 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

Well the new Escalade does get 1 mpg better than the old one

Gas is $2.9X in 80% of the country. As long as gas goes up slow and stays high people get complacent and forget that they are paying $10-$20 a week more than a year ago.

I even find myself driving harder again and driving more like I used to at under $2.50. Americans forget easy, and if you can afford an Escalade, that extra $20 per tank is even easier to forget. Sadly enough, as long as it cost me under $50 to fill my Colorado I doesn't bother me as much.

Hybrid Escalade comes out in fall 2007
Old May 15, 2006 | 10:24 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

What's good is the electric-only mode in stop and go traffic.
Old May 15, 2006 | 10:44 PM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

I think it shows Americans reluctence to give up what they love, reguardless of the fuel prices. I still drive my '88 4x4 Suburban, fishing or to the lumber store etc. And my Park Ultra requires Premium for the S/C'er, but I drive it everywhere, nice sleeper. I just don't fill the tank any more, with the 40gal in the Sub @ around 12mpg, and the 24.5gal in the Park @ around 22mpg, I keep it around 1/2 tank, and so do most people I talk to nowdays.
Old May 16, 2006 | 05:15 AM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

Sure, dealers are still selling out of the Prius, but sales of the Honda Accord hybrid plunged 69 percent last month and Ford had to resort to a zero percent financing deal to jump-start its Escape hybrid.
I love that part!
Old May 16, 2006 | 07:20 AM
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Re: Crisis? What crisis? Fuel use rises, Escalade sales soar.

Originally Posted by 90rocz
I think it shows Americans reluctence to give up what they love, reguardless of the fuel prices. I still drive my '88 4x4 Suburban, fishing or to the lumber store etc. And my Park Ultra requires Premium for the S/C'er, but I drive it everywhere, nice sleeper. I just don't fill the tank any more, with the 40gal in the Sub @ around 12mpg, and the 24.5gal in the Park @ around 22mpg, I keep it around 1/2 tank, and so do most people I talk to nowdays.
What does keeping it at a half tank do? Other than making you take more trips to the gas station, but spending less each time... So you can go once a week and fill 'er up, pay maybe $40.00. Or, you can go twice a week, but only put $20.00 in each time.

I suppose you might get FRACTIONALLY better mileage because your car will be slightly lighter if it never spends time above a 1/2 tank (if you fill it to half full, run it down near empty, fill it half full, etc.).

Are you hiding from the reality of $40 to $50 fillups (or more) by only putting in half each time?



I drive my cars until damn near E, then fill up at each fuel stop. No point in spending more time at the gas station than I need to, plus that way I can log my fuel economy each tank. I haven't done the whole "put $5.00 in" thing since probably high school...



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