Jeep Dealer’s $50,000 Sticker Shock Captures Auto Sales Stress
(Bloomberg) — Robert Loehr’s dealership is hanging in just fine, much like Fiat Chrysler Automobiles NV’s sales did last quarter. But just as investors doubt the U.S. car market can sustain near-record results for much longer, the Georgia retailer is apprehensive about a key issue: sticker shock.
“Prices are crazy on cars nowadays — all of them,” said Loehr, who sells Jeeps, Rams and other Fiat Chrysler models from a showroom northwest of Atlanta and has been in the business for 35 years. “They’re crazy to me, and I do it every single day, all day long.”
New Jeep Gladiators — the truck version of the rugged Wrangler model — can easily fetch $50,000 and are emblematic of a trend toward eye-popping prices carmakers are commanding for the pickups and sport utility vehicles making up an ever-greater share of their sales. Even as manufacturers and lenders increasingly stretch out auto loan terms to more than seven years and subsidize interest rates with incentives, average monthly payments keep climbing.
Affordability could become more of a risk if the mounting concern that the American economy is headed for recession ends up panning out. Those fears drove the benchmark S&P 500 down more than 2% on Wednesday, to the lowest since August. General Motors Co. and Ford Motor Co. shares slumped by even more.
The U.S. car market has probably reached the end of a great run, according to Brian Irwin, who leads the automotive and industrial practice for consulting firm Accenture. “It’s a step down from where we thought we would be a few months ago,” Irwin said in a phone interview. “I expect to see stronger incentives coming out.”
- Located in San Diego’s University Heights, the tiny ‘undated studio’ is 200 sq-ft and comes with a small kitchen and bath
- Recently updated, the home does have freshly laminated floors and an AC unit
- Requirements to rent the property include having a credit score of 650 or more while also having no prior legal evictions
- Potential renters are to also have an income that is 2.5 times the rental amount – so roughly $31,500
- The shed was originally listed for $1100
Reddit users have voiced their disgust with a San Diego real estate listing that is asking for just under $1,100 to live in a shed.
Located in the city’s University Heights, the tiny ‘updated studio’ is 200 sq-ft and is being managed by an Arizona company, JD Property Management and Realty.
The $1050 listing advertises that the studio comes with a bath and a ‘small kitchen’ that consists of several cabinets, a sink, gas stove and a mini fridge.
Recently updated, the home does have freshly laminated floors and an AC unit.