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RE: Manufacturer's Profits at Buyer's Expense

To: "Paul T. Root" <proot@horton.iaces.com>
Subject: RE: Manufacturer's Profits at Buyer's Expense
From: "Gordie's Garage" <mg_garage@ameritech.net>
Date: Fri, 6 Dec 2002 18:59:51 -0500
> On Fri, Dec 06, 2002 at 12:13:03PM -0600, Chuck Renner wrote:
> > > "According to Deutsche Bancs auto analyst Rod
> > > Lache, on average, the automakers make $5,500 more off
> > > of every mid-size SUV than they do off of a car."
> > >
> > > If they want to scalp those who buy them for fun, ok.  But,
> > > for those who
> > > need one for a tow vehicle - shame on those greedy *#&$ companies.
> >
> > Uh, they're making that much more for several reasons:
> >
> > 1) Volume:  the best selling vehicles in the US have been
> pickups for the
> > last few decades.  SUV's like the Explorer share many
> components with the
> > Ranger, and in and of themselves sell in huge numbers.  All of that
> > expensive tooling, along with engineering and development cost
> are spread
> > over a huge number of vehicles, so the profit per vehicle is going to be
> > higher because of that.
> >
> > 2) CAFE and other regs:  Yes, the vehicles classified as trucks
> don't count
Off topic, but I've got to chime in...Paul, do you think it is possible to
have used the truck up?  Or most of it anyway?
Seems that few account for the value they get from the vehicle (car or
truck) and always figure they "took a bath" on resale.
I wonder if anyone has put a $$$ figure on all the value you get from use of
a vehicle?  I'll bet it would be greater than the overall cost, 0% financing
or not.

my .02
Safety Fast!
Gordie Bird
62 MGA
80 MGB


>
> I bought a pretty much base Mazda Navajo back in '93, steel wheels, manual
> transmission, no cruise, wind up windows, cloth etc. I used it for camping
> etc. It was a pretty good truck. It did what it was supposed to
> do. It didn't
> pretend to be a car, and while I used it a daily transportation,
> I also used
> it a lot as a truck.
>
> I took a bath on resale value. And it had low miles and was in very good
> shape.
>
>
> --
> Paul T. Root          - CCSA, CCSE, CCNA
> 600 Stinson Blvd, Fl 1S               PAG: +1 (877) 693-7155
> Minneapolis, MN  55413          WRK: +1 (612) 664-3385
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