BMW enters the full-size SUV market with the X7 and it looks pretty badass. V6 model starts at $75,000 and the V8 model is right under $100k.

$25K more for two extra cylinders. Seems reasonable!

Its still pretty kick ass though!

chimpanzee said:

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Flaith said:

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Quote:

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V6 model starts at $75,000 and the V8 model is right under $100k.

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Indeed.

There's going to be a bloodbath in the industry if something like the mortgage crisis hits auto lending.

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Its starting to happen.

Interest rates creeping up + uber drivers/people that drive the hell out of their cars for work are starting to accrue mileage and needing to trade in and find out they're upside down on a car that they financed at 3.9%, and see their low 600 credit score nets them a 7.9% APR for 72. Suddenly that Charger SXT payment jumps $130 bucks a month, plus the $9800 dollars that they're upside down on the other one they're trading in, its a downward spiral.

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Yep, I think the sky high prices that they've pushed their vehicles to combined with the availability of auto loans that reduce principal amounts slower than depreciation are going to bite the auto makers in the ass. New vehicle sales volume will drop, followed by used sales dropping due to high prices driven by high initial prices and low supply because people will be forced to hang on to their vehicles for longer.

I'm sorry, but a Tahoe isn't worth $70K and it certainly isn't worth $80K when you include 7 years worth of interest payments.

Will the end result be lower vehicle prices at some point? I know more electronics, features, etc. adds to the base costs, but the $60k+ price of diesels is outrageous.

saltydog13 said:

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Will the end result be lower vehicle prices at some point? I know more electronics, features, etc. adds to the base costs, but the $60k+ price of diesels is outrageous.

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I think what you'll see is new car sales plummeting and then used car prices going up for a spell, then manufacturers trying to offer more value for the money or cutting costs.

I talked to a guy at a Dealer networking event who was telling me that they're selling a lot of high zoot pickups these days and getting a lot of conquest customers from mid/upper Luxury owners that are pissed off at reliability, resale, service and infotaintment/ease of use from their high end car, and found that a upper trim truck that costs as much as their luxury car, and lets you change oil anywhere, doesnt require insanely expensive service, and offers intuitive infotainment and can haul crap is more attractive. Not sure if this was BS or real, but he had a good point.

If you don't need a fancy diesel, you can still get a Crew cab 4x4 diesel XL thats got power everything for around 40K ish.

Oh wow I didn't know XL with power everything could be had for around $40k. That'd be the trim I'd go for since it's essentially the same trim as my tundra SR5. I only looked at XLT trucks that are going for about $50k

saltydog13 said:

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Oh wow I didn't know XL with power everything could be had for around $40k. That'd be the trim I'd go for since it's essentially the same trim as my tundra SR5. I only looked at XLT trucks that are going for about $50k

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My F250 stickered for 52K and I paid a hair over 40K.

saltydog13 said:

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Oh wow I didn't know XL with power everything could be had for around $40k. That'd be the trim I'd go for since it's essentially the same trim as my tundra SR5. I only looked at XLT trucks that are going for about $50k

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STX ftw!

As someone with a 30k truck, i can't imagine a 90k suv. Hell even if I had a trust fund I couldn't imagine it. I'd rather that money go to a house in the mountains. Uneral what longer loans and "Cheap" leases have done. Gonna be a bad bubble as others have said.

1agswitchin4lanes said:

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chimpanzee said:

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Flaith said:

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Quote:

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V6 model starts at $75,000 and the V8 model is right under $100k.

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Indeed.

There's going to be a bloodbath in the industry if something like the mortgage crisis hits auto lending.

---

Its starting to happen.

Interest rates creeping up + uber drivers/people that drive the hell out of their cars for work are starting to accrue mileage and needing to trade in and find out they're upside down on a car that they financed at 3.9%, and see their low 600 credit score nets them a 7.9% APR for 72. Suddenly that Charger SXT payment jumps $130 bucks a month, plus the $9800 dollars that they're upside down on the other one they're trading in, its a downward spiral.

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Gap Insurance.

What would you estimate the price for that truck, but with the gas engine?

The Lost said:

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saltydog13 said:

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Oh wow I didn't know XL with power everything could be had for around $40k. That'd be the trim I'd go for since it's essentially the same trim as my tundra SR5. I only looked at XLT trucks that are going for about $50k

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STX ftw!

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This.

saltydog13 said:

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What would you estimate the price for that truck, but with the gas engine?

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Sticker $40-$45 depending on drive-train and options

The better move here is to wait for the values to crash by 50% when they're 2-3 years old. If the X7 reliability is anything like the 7 series reliability - NO THANKS.