High fuel prices = less 4x4 orders

**daveb** · 08-14-2008, 12:04 AM

I made a visit to SMBW to drop my van for some work on the Espar (which I will post later) and to have the hands free system, new stereo, and a backup sensor installed. I was amazed how few 4x4s were in production. Seems fuel prices have hit hard. I saw only one rig on a lift something I have never seen before. Lots of Sprinters though. I would think now would be a good time for a build because the crews aren't whipping them out as fast as they can. All SMB (and myself included) can do is to pray for cheaper oil. I am still happy at 12 MPG but not thrilled.

JB has bought or is in the process of buying another van (his west coast ride) but I'll just leave it at that. Of course if he paints it that color he likes we will all know when he passes by.

DaveB

PatO · 01-12-2009, 10:04 PM

Quote:

Originally Posted by daveb

I made a visit to SMBW to drop my van for some work on the Espar (which I will post later) and to have the hands free system, new stereo, and a backup sensor installed. I was amazed how few 4x4Ã¢â‚¬â„¢s were in production. Seems fuel prices have hit hard. I saw only one rig on a lift something I have never seen before. Lots of SprinterÃ¢â‚¬â„¢s though. I would think now would be a good time for a build because the crews arenÃ¢â‚¬â„¢t whipping them out as fast as they can. All SMB (and myself included) can do is to pray for cheaper oil. I am still happy at 12 MPG but not thrilled.

JB has bought or is in the process of buying another van (his west coast ride) but IÃ¢â‚¬â„¢ll just leave it at that. Of course if he paints it that color he likes we will all know when he passes by.

DaveB

Fuel prices right now for diesel are 1/2 of what they were in July when they topped out at $5.35 on my corner station. But I do agree it HURTS.
And people remember. Also I think most people now realize there is no payback for getting a diesel. Maybe 5 years ago at 100K miles it became worthwhile. Those days are gone, maintenance and fuel never compensate the initial premium cost. I get 13.5 mpg, 14.5 max.

jage · 01-12-2009, 10:13 PM

Yeah, but I have the option of veggie oil when fuel is at $40/gal and veggie oil is only 10...

Psomaki · 01-12-2009, 10:32 PM

Jage, hate to tell you, but around here veggie oil is getting harder to find and the price is going up. As to fewer SMB orders, could this also be a result of the fact that it's WAY harder to get financing for anything, let alone a $70,000 panel truck with a bed in it (which is how many bankers see Class Bs)?

Greg In Austin · 01-13-2009, 09:51 AM

Psomaki has a good point.... there are fewer SMB orders regardless of fuel type due to the economy and the lending industry When we got ours last spring we were just beginning to see the effects.

The fuel price situation is an interesting one. Everyone remembers last summer when prices for diesel peaked. ....but do we also remember when a gallon of diesel cost less than a gallon of gas? Not that long ago.

As cars get more fuel efficient, or as more fuel efficient cars get more numerous, we may see the price point relationship change again.

The trucking industry is not going away. The trucks will get more efficient, but the fuel will remain diesel.

An interesting comparison would be to see what the consumption numbers have been month by month for diesel and for gas over the last 3 years. I suspect that the gasoline consumption is the one that has grown and that also dropped (surprisingly to me) when prices were peaking. I suspect that the diesel consumption is much less "controlable". This may help make the price relationship change over time.

ExSoldier · 02-02-2009, 09:43 PM

Quote:

Originally Posted by jage

Yeah, but I have the option of veggie oil when fuel is at $40/gal and veggie oil is only 10...

Hey folks, I'm brand new here. First ever post. I don't have an SMB but want one, bad. 4x4 of course! I like to think of it as my SHTFKV. $H** Hit The Fan Katrina Van! One of the things holding me back is the cost of diesel and I'm idly thinking of this:

http://www.homebiodieselkits.com/index.html This company says to use the by-products from restaurants (especially chinese for some reason) as the primary source supply, not new veggie oil. If true, then the supply might be virtually limitless. Check out the website, it seems like a good thing, if you've got the room and the inclination and of course, the capital. They'll even finance so that's good. I'm thinking that if I can fill my tank on my schedule and with an abundance of supply, I might even get into the fuel sales business. Not where I live, now in Miami FL but planning on retiring to the vicinity of Boise ID.

Greg In Austin · 02-03-2009, 05:35 PM

One major point for me if I were in your shoes is whether I want a NEW or USED SMB... and if NEW, how would something like this affect warranty...

Psomaki · 02-03-2009, 09:34 PM

You might find this site interesting: http://journeytoforever.org/biodiesel_svo.html
There are anecdotal indications that the price of restaurant waste oil, especially in these difficult times, is going up because those who have it are realizing that some folks want it enough to pay for it.

Greg In Austin · 02-04-2009, 07:49 PM

I had a conversation with SMB TX today and things are picking back up.....

**daveb** · 02-10-2009, 09:47 PM

I’m glad I bought my rig when I did even with the fuel prices this year. Wouldn't change a thing. People are freakin out and holding back. I understand this. If this economy would have hit before my purchase I might of made a grave error and missed out on what I have now. But who knows what the future will produce. The way it looks now a SMB seems like a good value if you have the cash. Still it might be kind of a gamble, I'm just glad I've got what I've been able to get with my purchase; Great times.