Knee-jerk reaction over ‘big’ cars

Knee-jerk reaction over ‘big’ cars

I’m sure in certain areas it’s highly fashionable to have a small car. It’s for ‘the environment’. But it doesn’t seem like it in Herne Bay/Ponsonby, where I drive through every day, dodging the mothers in their big M-Class Mercs and Range Rovers. The newspapers are awash, though, with people trading down their big cars for smaller, more economic machines, which is blatantly ridiculous. The well-to-do already know this, which is part of the reason they have cash.

A basic understanding of economics would say that if you have to sell out of your perfectly good large car and take a $5000 bath, then have to buy a possibly inferior small car just to save $20/week, that it’s going to be a long time and a lot of dissatisfied motoring later before you’ll have paid it back.

Everyone’s trying to sell big cars right now. Dealers won’t trade some of them in, or if they will, they’re offering next to nothing for them. People are predicting the death of the muscle car. GM is thinking of selling off Hummer!

Now, when the masses are stampeding in one direction, the smart money heads in the other. Hummer will most likely be sold to the financially astute Indians – the Amercans ceding control of another valued brand overseas. Hummer will grow once the oil speculators are neutralised and the price returns to sensible levels.

Others will buy one of Holden’s new W427 7-litre hyper muscle cars and sit on it for 20 years until it’s worth a couple of million.

Just like housing is going through the bursting of a bubble, oil’s bubble will burst. But, before then, people will adjust their expectation of what is an acceptable price of fuel. The psychological barrier of the $100 fill will be broken and will become the norm. People will start buying large cars again, just like they do in every other country. I will still have to dodge the large four-wheel drives dropping off kids in Herne Bay and Ponsonby

I’m sure in certain areas it’s highly fashionable to have a small car. It’s for ‘the environment’. But it doesn’t seem like it in Herne Bay/Ponsonby, where I drive through every day, dodging the mothers in their big M-Class Mercs and Range Rovers. The newspapers are awash, though, with people trading down their big cars for smaller, more economic machines, which is blatantly ridiculous. The well-to-do already know this, which is part of the reason they have cash.

A basic understanding of economics would say that if you have to sell out of your perfectly good large car and take a $5000 bath, then have to buy a possibly inferior small car just to save $20/week, that it’s going to be a long time and a lot of dissatisfied motoring later before you’ll have paid it back.

Everyone’s trying to sell big cars right now. Dealers won’t trade some of them in, or if they will, they’re offering next to nothing for them. People are predicting the death of the muscle car. GM is thinking of selling off Hummer!

Now, when the masses are stampeding in one direction, the smart money heads in the other. Hummer will most likely be sold to the financially astute Indians – the Amercans ceding control of another valued brand overseas. Hummer will grow once the oil speculators are neutralised and the price returns to sensible levels.

Others will buy one of Holden’s new W427 7-litre hyper muscle cars and sit on it for 20 years until it’s worth a couple of million.

Just like housing is going through the bursting of a bubble, oil’s bubble will burst. But, before then, people will adjust their expectation of what is an acceptable price of fuel. The psychological barrier of the $100 fill will be broken and will become the norm. People will start buying large cars again, just like they do in every other country. I will still have to dodge the large four-wheel drives dropping off kids in Herne Bay and Ponsonby

« | »

Let us know what you think

Loading Facebook Comments ...

Road Tests

Silver Sponsors

Car and SUV Team

Richard-Edwards-2016Richard Edwards

Managing editor

linkedinphotoDarren Cottingham

Motoring writer

robertbarry-headRobert Barry

Chief reporter

Ian-Ferguson-6Ian Ferguson

Advertising Consultant

debDeborah Baxter

Operations Manager

RSS Latest News from Autotalk

RSS Latest News from Dieseltalk

Read previous post:
Mazda6 Limited 2008 — Road Test

I knew I’d have the Mazda6 on my birthday for a couple of months prior. My choice of birthday car...

Close