My wife just told me that a local bank has a commercial on the radio trying to get people to get rid of their "gas guzzler car/truck/SUV" and get a new fuel efficient car. Of course they are more than happy to cover the financing.

Pretty funny. What an idea.

 

That kind of thinking also helps the local economy. After all, what car salesman *wouldn't* want to sell a bunch of $21k cars, eh?

 

To be honest I think they would rather sell the gas guzzler big SUV at $42,999. Commission (read as groceries for the fridge) is a big motivtor for the salesman. Unless everyone that decommissions their SUV buys 2 hybrids to replace it with.

 

You've got a point there! I was thinking in the other direction -- Selling a $21k Prius-II versus a $9k Toyota Echo.

 

Actually, growing up in a business oriented family (auto parts) I was taught more people can afford what's cheaper so target them instead of wasting your effort for the "The Big Sale".

Just like the $21k Prius vs the $9k Echo. I'd rather sell 5 Echos instead of 2 Prius'. Gas saving cars are "normally" a bit cheaper so the bank might be on to something.

 

Rigger,good point.A lot more folks can afford a Corolla-new maybe $15000-than a Prius-new currently maybe $25000!!
I have sold lots of cars-trucks(mine-rather than trade) maybe 15-20 or so,and it is a lot easier to sell a $2500 vehicle(my 86 Toyota truck in 1997 with 120K miles and dinged up) than it was to sell my $6500 Toy truck in 1999 ,or my $9700 1998 Toy truck,or the $17500 Tundra in 2004.
Lower priced vehicles frequently can be bought without financing-say something under $6000-.Pricier stuff-under $10,000 can sometimes be financed through a CC advance etc.
When you get much over $12000 or so it means formal financing(big problem with private sale) or worse a very knowledgeable financially well off guy who wants a great deal,and hopes to find a distressed seller who has to sell quickly.
Private sales of expensive vehicles is tough.If the vehicle is a Toyota or Honda that is a big advantage,but it still is tough.
Inexpensive vehicles(relative toi a $40000 SUV) can make a bank more money-they can actually finance the guy who is buying it-and if his credit is so so-they can finance this car-a $25000 Prius-at a high rate and make out just fine if they have to repo it.
Why would a bank want to finance a $40,000 gas guzzler.If they have to repo it,they will have a tough time selling it.
Regular Corollas-Civics(once the 2006's cool off a little)-4 cyl Accords and 4 cyl Camrys-are all MPG winnners and can be bought for $5000 to $10000 less than a Prius or the 2006 Hybrid Civic that the dealers will want $25000 for(close to H Accord money). A $9000 price difference at $3/gal is 3000 gallons-at 30 vs 45 mpg the break even is 3000+ X/45= X/30 X=270000 miles. With an Accord-say 22 vs 44 mpg it would be more like $6000/$3 + X/44=X/22 X 88000 Miles.This ignores tax breaks-maintanence-resale effect on earth of CO2 etc.hanks.Charlie