When the 2007 Chevrolet Tahoe first debuted over seven months ago, it sat on dealer lots for an average of just seven days before a buyer was found. Now, Tahoes are taking over 62 days to sell, according to data from the Power Information Network and Automotive News. Since January, incentives and bargains have pushed the average price down by $5,000 — from $42,191 to $37,667. Of course, GM is not the only automaker faced with a shrinking demand for SUVs. Over a week ago, Ford reported unexpectedly poor earnings for the second quarter — due mostly to waning demand for SUVs and pickups.
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07/31, 8:13 AM
posted by:
chris2
Anybody know where the $5000 incentive is being offered on a 2007 Tahoe? I can only find $2000.
I did find the old 2006 has a $6000 offer. do you tink the LLN is quoting the old model????
http://www.gm.com/automotive/vehicle_shopping/currentoffers/NC_Consumer_IOU.html
07/31, 8:42 AM
posted by:
Jonathan Fingas
There’s a shock – SUVs not selling well right when fuel prices are peaking! The consequences of GM’s relative shortsightedness strikes again. True, you can’t simply substitute model lines in a pinch, but GM was clearly convinced SUVs would last forever and neglected its smaller vehicles.
07/31, 9:00 AM
posted by:
chris2
I went and looked at the data they are quoting and it includes the old model 2006. 2007’s are still hard to find and selling well with little incentives. Good reporting job LLN!!!
07/31, 9:04 AM
posted by:
Renton
OBVIOUS ?
07/31, 9:11 AM
posted by:
ryan
chris2, this is right from jd power. u are wrong. it is the 2007.
Jan. 7 $42,191
Feb. 14 $41,031
March 20 $40,621
April 28 $39,153
May 40 $38,315
June 49 $38,029
July 62 $37,667
07/31, 9:28 AM
posted by:
Mike
with average transaction price down $5000 that means it is still 7,000 above the previous model.
07/31, 9:32 AM
posted by:
Nick
In the past 5-10 years, a majority of the people who bought large SUVs live in the city or the suburbs. They bought them for the image that an SUV presented. They were “in”. Now, the image of the large SUV isn’t as well percieved. Crossovers are the new “in”. A lot of the people who bought a Tahoe or Suburban will look at the new large crossovers from GM instead because they present the better image now. The worst part is the large crossovers don’t get much better gas mileage.
The auto market is very fickle. How many large sedans/station wagons do you see today? How many did you see in the 70s? What about the minivan boom of the 80s? They were huge, but now there are companies stopping production on their minivans. I think we’re seeing the end of the large, truck based SUV and the start of the car based SUV. There will always be a market for large truck based SUVs, it’ll just be much smaller than it has been in the recent past.
07/31, 10:00 AM
posted by:
chris2
ryan, thanks for the data. Are you saying that the prices are going down due to incentives? Or the dealers are now dealing?
This looks like ATP data? Where did you get it (link please)?
Yes the crossovers are going to be much more sensical with $3 gas. I suppose that is why GM tooled up one less plant for the large SUV’s and shut down the mid size SUV 8 passenger version and is releasing the 8 passenger crossover in a couple months?
07/31, 10:03 AM
posted by:
chris2
Ryan, the data I was referring to was the Automotive News inventory. Their data includes the 2006 and 2007 that I could find.
07/31, 10:07 AM
posted by:
Patrick
hahaha GM’s big SUV’s cant even save it now!
07/31, 10:14 AM
posted by:
Wickedated
My company bought one when it first came out, the 2007 Tahoes are great cars, surprisingly well-refined, smooth ride, seats 7 comfortably. All seats fold electricly and the third seat folds and can be hauled out like a suitcase. VERY well thought-out if you’re looking for versality. With at maximum cargo area we were able to plack 7 kegs and other bar supply equipments all in one trip. And cruising in the city, it’s a smooth ride for all passengers.
My only beef is that the touch screen navigation sometimes act up.
07/31, 10:32 AM
posted by:
Chris
Only reason I am waiting is that its a fairly new model and there are bound to be bugs. I love my Durango but a dark grey Tahoe is on my to do list. The truth is if you have to carry around 6 or more people and tow things there is no better way.
07/31, 10:35 AM
posted by:
Renton
#11–Wickedated– Car and Driver, I think, said these are the best large SUVs out there. Too late to market now that $3.50/gal gas is here.
Too bad.
/I also can’t stand touch screen anything. Except porn, that would moderately funny.
07/31, 11:31 AM
posted by:
Mitch
I like the new Escalade/Yukon/tahoe.
07/31, 11:51 AM
posted by:
Greg
Great news!
07/31, 12:58 PM
posted by:
Anonymous
They wouldn’t be losing steam if all the morons who buy Seqouia’s, LandCrusers, Rovers, Pilots, MDX’s, Q7’s, Touregs and all other inported piles of crap would wake up and realize these are by far the best SUV’s on the planet! Nobody should want one of those if they knew how incredible and capable the GMT-900’s really are.
There are unfortuantly a lot of stupid f’n idiots in the world who pass up one of these fine trucks for an immitation pile of garbage its sickening. Wake up losers!
07/31, 1:00 PM
posted by:
Matt
Could part of the reason the transaction prices are coming down be that not all of the Tahoe’s being sold top of the line Models?
When they first came out, all I saw were high end models, now on the Dealers lots are a nice mix of low, middle and high end models.
07/31, 4:09 PM
posted by:
CCB72
To Anonymous #16:
Come on GMRules, are you now hiding your head under a paper bag?
07/31, 7:09 PM
posted by:
Anonymous
Yeh, right ! And the Armada and Sequoia don’t suck gas either ? It’s Japanese, therefore it’s efficient….talk about a Moron’s post…..#19
08/01, 7:25 AM
posted by:
Carnut4ever
The real morons are the marketing and design studios at GM. I think they never saw this coming. The marketing guys for being too slow to react to market changes and the design team for making the Tahoe look too bland that it resembles the last gen-models. The GMC Yukon and the Escalade fares much better.
08/02, 12:12 AM
posted by:
1c3d0g
#21: LMAO! So now just because they don’t sell in high-volume they’re allowed to guzzle gas? What the hell are you trying to say, boy? Get your stupid ass out of here.
12/21, 3:23 PM
posted by:
GarbageMotorsCo
People don’t want full size SUV’s that get 10mpg on a good day. Car based SUV’s is where the market is shifting towards. GM is going to lose out on abandoning the car market for just another truck.
GM, a leader of nothing except fuel costs.