Gas prices making anyone reconsider?

[Cliff-Yukon]

Gas prices hurt, but I don't think it'll deter demand too much as hopefully this is a short term spike. Maybe the gas increase coupled with other inflation might tho!?! In the end someone driving 20K miles a year avg 17 mpg uses 1150 or so gallons so that's another $1,500-$2K or so a year. If budget was that tight, maybe a $65K-$90K SUV wasn't the best vehicle..... Also, in terms of demand, if there are still folks willing to pay $5K+ over MSRP I can't imagine that and extra couple grand of gas would deter them, although logic is funny sometimes.

 

[Cryptocap]

Quite a few threads posted almost daily concerning gas mileage, diesel over gasoline engines and now, the topic du jour, fuel price increases. Obviously fuel costs are a concern for many except for a vocal few who eschew such thoughts. Very curious.

For those who don't care do you concern yourselves with budgeting or rising prices in general?

For me, it’s not that I don’t care, I’ve just come to accept that these things will go up and plan for that. Food cost, travel, etc. It all is affected by higher fuel cost. I use an app to budget my money because it conveniently connects all of my accounts. I have a certain amount allocated for each recurring monthly costs. I monitor those and adjust as necessary. The money left after budgeting goes to another account for investing.

 

[bigdog9191999]

 

[Quark]

We might surmise that increased inflation will be here for years to come and plan accordingly.

For me, it’s not that I don’t care, I’ve just come to accept that these things will go up and plan for that. Food cost, travel, etc. It all is affected by higher fuel cost. I use an app to budget my money because it conveniently connects all of my accounts. I have a certain amount allocated for each recurring monthly costs. I monitor those and adjust as necessary. The money left after budgeting goes to another account for investing.

I was countering the statement that people who pay $70,000 should not care about the price of gas.

I'll pay cash for a new one someday but I will always fight to keep daily expenses down, it's the way I was raised and it's how I pay cash for everything I have.

 

[Stbentoak]

Also, I think this gas thing will be like housing prices... it will probably go up another .50 to a dollar, say 5.50 ish, then fall back in the fall, say back to 4-4.50 and level off there as the "New Normal"....
Like housing, prices may drop "Some", but they are never going back down to 2017-2018 levels... 400K is the new 250K house for the foreseeable future.... and could even go higher...

 

[Stbentoak]

If they do so, higher interest rates will limit the amount of loans that are approved for a $70+k vehicle which should decrease wait times for delivery.

I think you underestimate the amount of people that pay cash for these vehicles... (Which I'm going to say is well over 50%). Americans are sitting on the highest level of savings in history. I doubt many finance companies would say "Its 10K over the sticker, no problem we'll throw that into the deal" to a family who may be stretched to afford one...

 

[firsttimetahoe]

Gas prices hurt, but I don't think it'll deter demand too much as hopefully this is a short term spike. Maybe the gas increase coupled with other inflation might tho!?! In the end someone driving 20K miles a year avg 17 mpg uses 1150 or so gallons so that's another $1,500-$2K or so a year. If budget was that tight, maybe a $65K-$90K SUV wasn't the best vehicle..... Also, in terms of demand, if there are still folks willing to pay $5K+ over MSRP I can't imagine that and extra couple grand of gas would deter them, although logic is funny sometimes.

Exactly - I can't imagine why someone would buy a Full-Size SUV this expensive and then worry about being able to fill it up at the pump with higher gas prices.

 

[firsttimetahoe]

Here we go again....

It's certainly going to reflect in the reports concerning inflation. The Fed should take that into account and increase interest rates faster than they had planned to in order to control prices.

If they do so, higher interest rates will limit the amount of loans that are approved for a $70+k vehicle which should decrease wait times for delivery.

They're not going to raise interest rates by much (if at all) in the midst of what's going on with Russia/Ukraine, where we already have rising inflation and now a spike in energy prices.

 

[Polo08816]

They're not going to raise interest rates by much (if at all) in the midst of what's going on with Russia/Ukraine, where we already have rising inflation and now a spike in energy prices.

Rising inflation and a spike in energy prices are exactly the reasons the Fed would raise interest rates.

 

[Polo08816]

I think you underestimate the amount of people that pay cash for these vehicles... (Which I'm going to say is well over 50%). Americans are sitting on the highest level of savings in history. I doubt many finance companies would say "Its 10K over the sticker, no problem we'll throw that into the deal" to a family who may be stretched to afford one...

If anything, I think people tend to over-estimate instead of under-estimating the assets of the majority of American families.

My friend just checked the Manheim auction prices for 2021 and 2022 Yukon Denali XLs and the prices have dropped significantly over the past 60 days along with most of other vehicles.