'Discounted Cars Benefit Buyers, but May Spell Trouble for Industry'


#1

boo

hoo


#2

As long as you buy cars, you can get a great discount. Trucks are still the cas cow for the auto companies. I also agree with you. I’m interested in saving money, not providing the Ford family with enough money to buy Wisconsin.


#3

Banks are also tightening up credit for the sub prime borrowers due to higher default rates. If you want to buy a car and can wait another 6 months to a year, you could be in for a real bargain!

The population is aging. Younger people don’t want to drive at the same frequency as prior generations. Cars are lasting much longer. This could yield a huge glut of good cars on the market.


#4

I’m pleased to hear that banks are tightening credit for poor credit risks. How long will that last? The job market is becoming a seekers market, and that should mean poor credit risks are more likely to get and keep a job. And how do we know that they will remain poor credit risks?


#5

Just last week on the radio I heard one Toyota dealership offering a substantial rebate if you by a new Corolla. $1500, something like that. It’s pretty unusual to hear of a rebate on a Corolla, so maybe there’s something to that NY Times story. I’d guess the reported reduced car sales is caused by

  • new car prices increasing
  • cars are more reliable, so last longer, less need to buy a new one
  • new car complexity turns some potential buyers away
  • some new cars are plenty ugly
  • demographics, folks in the typical new car buying age — 25 through 45 maybe – have less disposable income than that age group used to have access to in years past. Salaries not keeping pace these days, health care costs, etc.

#6

I doubt big trouble for a slump in sales, what major car maker has died in recent history?


#7

Yeah I’m sure it’s got nothing to do with all you can get is a turbo charged four cylinder engine and the fact they all look the same.