John McElroy: "Car prices set to soar"
#1
John McElroy: "Car prices set to soar"
I like watching the show, but I'm not too keen on how well he is at prediction things.
Autoblog.com
Autoblog.com
Wait! It gets worse! Skyrocketing commodity prices couldn't come at a worse time for the car companies. They're under the gun to boost fuel economy and cut CO2, and that's going to require expensive technology to achieve. Put the two together and my guess is that the average MSRP in the American market is going to come close to $40,000 in just a few years.
#4
Something like $35K.
I'm guessing that, like home prices, this isn't sustainable - at least not at ~16 million units/year. If indeed car prices jump another 10-15% - and I believe McElroy that they will, given the insane increase in raw material prices - then the auto industry had better get ready for an extended period of ~15M units/year.
I'm guessing that, like home prices, this isn't sustainable - at least not at ~16 million units/year. If indeed car prices jump another 10-15% - and I believe McElroy that they will, given the insane increase in raw material prices - then the auto industry had better get ready for an extended period of ~15M units/year.
#5
Something like $35K.
I'm guessing that, like home prices, this isn't sustainable - at least not at ~16 million units/year. If indeed car prices jump another 10-15% - and I believe McElroy that they will, given the insane increase in raw material prices - then the auto industry had better get ready for an extended period of ~15M units/year.
I'm guessing that, like home prices, this isn't sustainable - at least not at ~16 million units/year. If indeed car prices jump another 10-15% - and I believe McElroy that they will, given the insane increase in raw material prices - then the auto industry had better get ready for an extended period of ~15M units/year.
I predict people will hang on the their cars longer, which will lower automobile sales. The car companies should probably look to be profitable at lower production rates if they want to stay around very long...
I haven't been a fan of buying new vehicles as the cost is ridiculous. I just bought a 2002 Z28 for a little over 10k with only 37k on the clock; where a 2010 Z28 (or SS whatever) will be lower 30s. I don't understand spending 20k more, for virtually no reason other then it is new. I expect the "used" car market to EXPLODE in the next few years.
Hell you can buy a late 80s or early 90s car for 1,000 bucks that will still last you 50k miles.
Last edited by Chrome383Z; 05-29-2008 at 09:04 PM.
#7
That doesn't mean customers will be worse off as far as affordability is concerned. Because Chinese made vehicles will be at least as affordable as ever. And as ever, 'locally' made will be up against stiffer competition.
#8
Yes, because we all have read of the great "quality" coming from China and the "high" standards they have for crashes. The sad part is, they will probably be sold at high volumes just because they are cheap.
#11
Bob Lutz said this exact same thing back in January, that the technology to increase fuel economy, safety standards, etc. was going to significantly increas the cost of vehicles. (He figured $6,000 on average.) A lot of people on the auto blog sites that reported the story said he was crazy. I'll be interested if they say the same about McElroy...
#12
Cars are costing 1/3 to 1/2 the price of a house.
I've always said that's absurd for something that is used on average 5 years or less. vs a house you can live in for your whole life.
Oh well always bought used cars and probably will for a long time to come.
I've always said that's absurd for something that is used on average 5 years or less. vs a house you can live in for your whole life.
Oh well always bought used cars and probably will for a long time to come.
#15
I don't know where you can get a house for only twice or thrice the price of a new car, but I'm pretty sure it's someplace I wouldn't want to live.
Even in Phoenix in the midst of a housing crash, a modest priced house goes for well over 100 grand.