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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: profile_14 who wrote (33307)7/4/2004 8:26:55 AM
From: whitepine  Read Replies (2) of 206099
 
profile 14> Economically it will never make sense unless you are hauling a lot of stuff that requires the power of a truck, which, let's face it, a minor fraction of SUV owners do.

wp> I think your analysis is wanting.
1. Many more people today DO use SUV's for camping, hauling trailers of ATV's, boats, and other recreational toys.
2. Traditionally, the price of pickup trucks has declined FAR less than cars of the same vintage, simply because of their utility. Many buyers gravitated toward trucks/SUV's to avoid extreme depreciation.
3. Many drive larger vehicles for safety. On the jousting fields (expressways), do many Focus/Prius driver's feel safe at 70 MPH in the middle lane, surrounded by trucks?
4. 4WD is valuable during the winter.
5. Yes, SUV's present higher marginal costs, day-to-day, but if you own a boat or a camper, a Prius is out of the question.
6. A segment of the SUV market reflects those seeking status, but I find it difficult to allocate a proportion. High petrol prices do affect sales, but many consumers are not yet willing to give up boating, camping, or the safety that SUV's provide.
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