For many the deals were just a sign that gas prices were too high. For others though, the low sport utility vehicle and truck prices were too good to pass up. Robert Klinge, a contractor from Overland Park, thought that when he decided to buy his new Ford F-150. It was November of last year, and Klinge saved $10,000 dollars buying at a time when dealers were desperate to get rid of their inventory.
Klinge saved around $10,000 on an F-150 similar to this last year.
A year ago this summer gas prices in Kansas hit the highest they had ever been, topping $4 a gallon. People across the country stopped buying SUV and large trucks in favor of more fuel efficient imports and alternative energy hybrids. Car dealers watched as their lots filled up with gas-sucking behemoths that nobody wanted, and prices hit rock bottom.
Klinge was just one of many Americans taking advantage of the low prices, but a majority of people were biding their time, saving their money or investing in smaller more fuel efficient cars.
Source: http://dev.cardata.ca/
Since the decline of gas prices after the summer of 2008, the worries that people harbored towards SUVs and trucks have decreased as demand and the price go back up. Cars that had seen prices drop into the $35,000 range in 2008 are back up to nearly $50,000 dollars.
In Lawrence, car dealers are experiencing this same trend. According to Kevin Storm, finance manager of Bossier Nissan, 2300 W. 29th Terrace, Lawrence, Kan., prices are mainly up on domestic vehicles such as Ford and GM. Large import vehicles such as Nissan and Toyota have not seen their prices or demand increase to the levels that their domestic counterparts have.
Despite the increase in SUV sales, car companies are still suffering difficulties in the weak economy. A large portion of car companies profits came from SUV sales, and with the decline of sales from high gas prices in 2008 and the weak economy in 2009, car companies will need more than this increase in sales to keep themselves afloat.
Allen Jaskiewicz of Dale Willey Automotive, 2840 Iowa Street, says that used vehicles are very difficult to find right now. With the present state of economy, used cars have a much higher demand than new cars. And since fewer people are buying new cars, there are no used cars being traded in. That demand is driving the prices up.
Dealers across the country were desperately trying to sell the unwanted vehicles. Many were offering large cash rebates, great financing options, buy one get one free options for certain vehicles, and one dealer in Kansas City, Mo. Was offering buyers a certificate for a free semi-automatic handgun.
According to Edmunds.com, a new and used car listing database, F-150s are selling for prices between $25,000 to $30,000 dollars. Many people were reluctant to dish out the money for a car last summer, but for people like Klinge, the risk may have paid off.
Leave a comment