By TERRY BOX / The Dallas Morning News
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Big, once-invincible pickups shuddered to a halt this summer, stalled on dealership lots by high gas prices and a crumbling economy.
But the shocking 25 percent drop in full-size truck sales was just the first obstacle for a segment that was formerly one of the industry's most stable and profitable.
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Graphic: Trade-in values (.pdf)
Now, pickup owners may find that the truck-market tremors also deeply eroded the resale value of their vehicles – with some one-year-old trucks worth less than half what they were new. A drop that steep may be unprecedented, some industry officials say, and equivalent to two years' depreciation.
Moreover, the hyper-depreciation is likely to complicate the arrival of the 2009 Dodge Ram this fall and the '09 Ford F-150 this winter – all-new trucks critical to their beleaguered automakers. Potential buyers may find that they can't afford to trade their old pickups for a new one because their trucks aren't worth enough to provide a decent down payment.
"I think this bodes horrendously for the introduction of the Dodge Ram and Ford F-150, which are the best hopes to stabilize these firms," said George Hoffer, a business professor at Virginia Commonwealth University who follows the auto industry and does consulting work for automakers. "These trucks had the potential of being reprieves for Dodge and Ford."
Many dealers say they have scaled back their sales expectations for the new trucks.
"I'm optimistic because we've got a better new truck than ever, a truck that will compete with anything on the market," said Leo Griggs, owner of Park Cities Dodge in Dallas, which formerly counted on the Ram for 70 percent of its overall sales. "But I don't think it will ever be like it was – even here in Texas."
http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/090508dnbuspickups.1d6bc0b.html
[email protected]
Big, once-invincible pickups shuddered to a halt this summer, stalled on dealership lots by high gas prices and a crumbling economy.
But the shocking 25 percent drop in full-size truck sales was just the first obstacle for a segment that was formerly one of the industry's most stable and profitable.
Also Online
Graphic: Trade-in values (.pdf)
Now, pickup owners may find that the truck-market tremors also deeply eroded the resale value of their vehicles – with some one-year-old trucks worth less than half what they were new. A drop that steep may be unprecedented, some industry officials say, and equivalent to two years' depreciation.
Moreover, the hyper-depreciation is likely to complicate the arrival of the 2009 Dodge Ram this fall and the '09 Ford F-150 this winter – all-new trucks critical to their beleaguered automakers. Potential buyers may find that they can't afford to trade their old pickups for a new one because their trucks aren't worth enough to provide a decent down payment.
"I think this bodes horrendously for the introduction of the Dodge Ram and Ford F-150, which are the best hopes to stabilize these firms," said George Hoffer, a business professor at Virginia Commonwealth University who follows the auto industry and does consulting work for automakers. "These trucks had the potential of being reprieves for Dodge and Ford."
Many dealers say they have scaled back their sales expectations for the new trucks.
"I'm optimistic because we've got a better new truck than ever, a truck that will compete with anything on the market," said Leo Griggs, owner of Park Cities Dodge in Dallas, which formerly counted on the Ram for 70 percent of its overall sales. "But I don't think it will ever be like it was – even here in Texas."
http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/090508dnbuspickups.1d6bc0b.html
