The average discount for all automakers was $2,914, up $400 from a year ago. The total includes all the incentives that Edmunds could find, including cash-back offers and discounted finance rates.
These incentives could include a driver and a couple monkeys to keep it looking new but the result would be the same. People are not buying squat end of story.
i hope america really draws some big picture lessons from this economic crash...
ReplyDeleteconsumer fetishism will kill us all yet..
one love,
--reverend manny
There's a Car Dealer...Russ Darrow...in Milwaukee who's running a sale where you can buy a new car, or a used one for $10k or more, and then buy a second 'used' car for a buck. He ran this deal for two weeks in Jan. and started it again the second week of Feb. and is still running it.
ReplyDeleteNot a bad deal if you can afford to buy, or know a bank that's loaning money....and if you've got a job to pay for the loan.
The car business is suffering from the effects of the recession and secondly from promoting 6 and 7 year financing. Millions of buyers refinanced the negative amounts remaining on their car loans several times in the past and now have no choice but to continue to pay for and drive the old jalopy until their car's value is at least even with their loan balance. Usually on a 7 year loan that's 5 1/2 years assuming average mileage. What's the payment on that? was all people wanted to know. When I started selling cars the question was what that car gonna cost me, because the average buyer back then (1980's) went buy total dollars and not if I can make the payment I'll buy it. So we a an industry just ssttrreettcchheedd the payment out to 5,6 and seven years. Hell I have done deals that they total payback on a $36,000 truck plus negative balance will be $57,500 over 7 years. How's that for financial genius'? Tried to talk them out of it, dragged my feet for 3 weeks and they still did the deal. It's their money. See ya........
ReplyDeleteHell, I can barely keep my car running let alone go out and buy new. Who wants to put that kind of debt pressure on their budget now?
ReplyDeleteNo one wants to be six months into a new car loan only to get a pink slip from work.
By the way, One Fly ... I apologize.. :o(
I haven't put you on my blogroll until now.
Drain Bramage is common in dudes my age.
Hey guys,
ReplyDeleteThere are some who of course have no choice to buy a new car. But to go into debt for a new one - a device that gets you from one place to another in these times to me is iffy at best.
What my cars looked like was important when I was a teenager but that's long since over.
I am able to achieve safe efficient and most important cheap transport. Others can do the same if they put their egos aside.
None needed David - thanks for visiting. tb
ReplyDeleteI'm sure hoping my vehicle keeps running a few more years. It's not looking like a good time to add any financial burdens to one's budget.
ReplyDeleteIt is just beginning! I said start worrying at Dow 7000 today it closed at 6800. It will bottom below 6000!
ReplyDeleteEventually they will have to give those cars away in hopes of getting money from servicing them!
It will Cujo. Drive it real nice and keep up on the preventive maintainence is the key.
ReplyDeleteI guess the 401k's are headed even farther into the shitter Jim.