Big Cars are a Big Deal

By NorCalCars guest writer Chris Somerville

For some drivers, owning a big vehicle is a way of life. Pity the contractor who tries to work a major construction job out of the back of a Prius. It may be environmentally sound, but it’s not very realistic.

But as auto sales continue to fall (hitting 16-year lows in July 2008) due to rising gas prices and a shaky economy, now is the time to get a great deal on that new work truck you’ve had your eye on.

Truck and SUV sales are plummetting and manufacturers are making production changes to address changing consumer-buying preferences. But retooling a factory is no quick job, leaving dealers with a lot of big trucks on their lots. In fact, many dealers are offering hefty incentives and rebates to move big metal out the door.

”It is 100% the best time to buy a big truck,” says Chris Babcock, a salesman at Landmark Ford in Tigard, OR. “We’re offering hefty rebates on trucks -- up to $6500 in some cases.”

With most automakers scrambling to deal with double digit dips in truck sales (Nissan Motor Co. was the only major manufacturer to report a gain, with truck sales up 18 percent), analysts are expecting the trend of excess inventory to get worse before it gets better.

"We expect the second half of 2008 will be more challenging that the first half as economic and credit conditions weaken," Ford's marketing chief, Jim Farley, said in a statement.

And manufacturers finance arms are further tightening restrictions on credit lending, leading fewer approved auto loans. Mark LaNeve, GM's VP of North American sales, said tightening standards for buyers with poor credit are costing the automaker sales of about 10,000 vehicles per month. And with Chrysler announcing in late July that it was getting out of the leasing business, buyers have fewer options to get into a new vehicle.

But for many driving older vehicles with good credit, an upgrade can pay off in the long run. After all, who wouldn’t want a new vehicle with a super-low sticker price? Not many, apparently.

When asked if a lot of buyers are jumping on deals on big trucks, Landmark’s Babcock quickly answers with a ‘No’.

”Everybody seems to be trying to sustain with what they have and ride out the slowing economy,” he says, noting an excess truck inventory across the board for all brands.

If you are in the market for an upgrade, or even a first-time buyer, be sure to do your research. After all, it is a buyer’s market. Be armed with information about what you want before you head to the lot. Many dealers’ Web sites are featuring their big trucks, with many showing up-to-date inventory, saving you a drive to your local dealership until you’re ready to test drive.

While it takes a steady hand to drop a large sum of cash on a vehicle in the troubled economy that we have today, it also can pay off big time with a new vehicle that gets better gas mileage than your 1980s AstroVan and gives your butt a more comfortable ride home after a hard day’s work.

Chris Somerville is a freelance automotive writer based in the Pacific Northwest. Visit his Web site, Somerville Custom Publishing, for more information.