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

boo

hoo

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.

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.

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?

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.

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

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.