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While the Saturn Dealership in Delmar, (?) tried every stunt known to the automobile industry to try and encourage customers to at least pull in and have a free hamburger, hot dog, soda, chips, massive discounts and bouncing machines, there's NO money left!
Dealers are discounting automobiles like there's no tomorrow. One used car lot next to WaWa further north on Rt. 13 has nothing but pickup trucks on their lot, no cars at all. Other dealers have the rock bottom prices plastered all over the vehicle but there's no one pulling in to buy.
I just read an article in the Washington Post talking about expanding employee pricing to anyone they know. Dee, Dee, Deeee! No Sh!t! Either you unload them or you go under with that much more debt! Then who's going to service these vehicles when they fold? I love the commercial with Chrysler offering a Lifetime Warranty! Who's Lifetime? My money says I'll easily outlive that corporation, especially in this economy!
I guess a lot of people are that stupid?
Joe:
ReplyDeleteAs an auctioneer I get a lot of industry news.
One tidbit that came in a week or so ago was shocking:
Off lease SUV's have a deficit or loss of $4.5 BILLION DOLLARS for the manufacturers!
Plain English this means that people who have leased SUV's that the dealer / manufacturer 'normally' sells at wholesale auction for a predictable amount of money, are worth $4.5 BILLION LESS than what was 'predicted' for resale value through dealers.
One auctioneer reported that used SUV's and Trucks with less than 10,000 miles were only selling for several thousand dollars.
This is just the tip of the iceberg.
I wish I could talk about what is going on at the FDIC.
The $4.5 Billion quoted by Bosshogg, is the amount that the residual value has decreased from the time that the lease was created to the time the lease is over. However, tha number is based on an estimate of the residual value at $4.00/gal gas and some other economic forecasts.
ReplyDeleteDo you really think $4.00/gal gas is sustainable? I don't think so. The pressure on Pelosi, and Reed to open up more energy resources in this country is enormous. The Democrats can't keep blocking our energy reserves forever. People are starting to realize why gas is so expensive....it's because of Democrat policies. PERIOD!
The dealership near WaWa is Messicks. They have always specialized in truck sales, not cars.
ReplyDelete