While I was leaving work today I saw a 17 year old boy driving a black Hummer through the parking lot. My thoughts were:
1. Wow, someone who still thinks it's ok to drive a hummer.
2. Wow, a 17-year-old boy would can afford gas and insurance on a hummer
3. Is this about the most ridiculous display of environmental and economic arrogance given global warming and the state of the economy.
Then while I was driving home, I realized that I've been seeing a lot of trucks and SUV's in our parking lot. I think they may actually be a sign, not of affluence, but of the recession hitting our families. Parents are replacing their gas guzzlers with more fuel efficient vehicles for their commutes, but, assuming they owe more on the hummer than it's worth for example, they can't just trade it in. So they turn it into their kid's car.
I have no real evidence for this theory, it may not be that the parents are upside down on their cars, they might just not want to give up the utility provided, but in either case, I believe the increasing number of SUVs and trucks in our lot is a sign of downturn not recovery.
I think it realls depends on the production year of the truck/SUV (new or not) and whether it's it the $40-$50,000 model of the $15-$20,000 model.
ReplyDeleteA new $40,000 truck is someone spoiling their kid or has the money to blow on it.
A 5 year old used SUV may actually be cheaper on the market today than a small sedan.
A new inexpensive truck like what I got last year is actually cheaper than buying a car or van (mine was ~ $5,000 off the sticker price and started under $20,000
I am probably going to hedge my bets on bleeding cash and spoiled kids though in this one.
Most of them are not new, but are certainly not more than 5 years old which led to my hypothesis that the parents were upside down on the vehicles and had upgraded their own gas milage. If it was the school I coach at, yes, spoiled kids...at Hopkins, not so sure.
ReplyDeleteInteresting, I can see where the not new but probably not 5 years old would lead you down this path.
ReplyDeleteTwo things to think about:
1. Are businesses generally further away from the housing that feeds the school or about the same, ie parents upgrading their gas milage
2. Could there be a large excess of used 1-3 year old cars in the area from repo or dealers in the area letting people trade out at a loss?
3. Just because I said there was 2.... Could this be the last line of Trucks and SUVs coming off of 3 year leases and dealers are unloading them cheap to get them off the lot?
Interesting observations T