Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Buying a Car During the Credit Crunch
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Yeah, it is all about properly balancing what's legal with what your wallet, as well as your body, can take.
Regarding badass cars, go for it if you can afford it; it is just becoming harder to afford it. I would say, it stinks but is not that big of a deal - there are certainly more valuable and necessary things to lose.
As for having a car for fun, buy one with a clutch: costs less to buy, plus you have an option to be more frugal with gas than an automatic if you choose not to push it too hard.
Credit crisis adds to pressures on auto dealers
"Please feel free to contact dukeourl15gmail.com
Get ready for a deluge of SPAM.......not too smart posting your email address in an open publuc forum. "
Not my primary so viva viagra ! But thanks mike.
isellhondas also wrote:
I agree that times have changed and many mistakes have been made. I even predicted this would happen.
Telling everyone tales of gloom and doom don't help however and you seem to like telling us how the sky is falling.
I don't want to email you nor do I think your emails and phone calls to your congressman will do much good.
" Out of this quagmire we shall emerge strong"
Nice, a positive comment and I agree with you!
If you could find it in your heart, you might come to understand that there are other industry's worse affected by recession. Being a sales professional for over 25 years, I bow to isell, stand in line kid, I say to fandi. There was a chance, I was holding hope, that we could be in a cyclical bear market, 10-12 months in duration, vicious but leading back to old highs.
Congress pretty much put that to bed in the last two weeks. I would however question isell who would rather attack me in a public forum than email me, so far no emails . Rather I've got my opinion and don't let facts stand in the way. So be it, the offer was made. As it stands, my emails and phone calls did no good, my congressman and congress in general are too corrupt . There is a distinct difference between chicken little-ism and acknowlegement of reality. Given a choice, I'd rather be in car sales. Hang tough and best wishes to all salemen. Including isell who has an opinion but not a clue. interjecting the word assume here. But mostly you. Music trivia and humor will see me through. Requesting more humor por favor. I do not much care for credit crunches, as to weather I don't like Ike.
I live in the midwest as fandiguy does and people are struggling here too. Jobs are being cut here too and the cost of living is going up like elsewhere in the U.S. too. Fortunately, I have good credit. I am in the market for a new vehicle. I think it's good to discuss the economy although some posters think we may do it too much.
Car dealerships around here are really struggling. When I walk into a car dealership salesmen are offering me to take the vehicle home for a test drive even before negotiations have really even started. When I recently walked into a dealership I was the only consumer their looking at cars.
If you have good credit, especially prime financing buying a car is still on your side even during the credit crisis. But if you have sub prime credit your options are very limited. The stock market performance does also have a lot of bearing whether I will purchase a car.
Super, Im in tx vs midwest, but when i saw your comment, "...When I recently walked into a dealership I was the only consumer their looking at cars..." I thought of myself this past weekend! I went to a large Ford/Mazda dealership, and the place felt like a ghosttown. Thankfully I was left alone on the lot, but the place was deserted on a sunny Saturday afternoon.
That said though, I next drove 1 mile down the road to a large Toyota dealer. The place was crawling with lookers. While I did see several salesman standing around in front, I also saw several sales folks scrambling around with customers. Of course, I have no idea if anyone was buying, but they sure looked busy.
So I ended the day wondering the true state of the market (locally, at least) after seeing how different the atmosphere was between the different mfr's.
Have you ever heard about fun to drive? Do you really think that 1.4L 120hp car can handle 5 male adults :-)
An SE is still a pretty nicely equipped buggy, but we all want the SEL or Limited with all the bells and whistles. Readily available cheap credit made those higher trims more accessible to more folks, same with any make and model.
Maybe MSRP's will not come down much on any given model, but average MSRP across the board may dip a bit. Perhaps folks will find that lower trim levels or lower priced makes and models suit their needs just fine and will choose them more often. Lots bought Acura when Honda was the wiser choice or a big SUV when a modest sedan or small wagon would have sufficed.
I once put 10 in/on a '72 MGB. Not highly recommended, but young and dumb at the beach it seemed a good idea at the time.
I simply stated that some of us get tired of the constant gloom and doom. We KNOW our economy is in turmoil.
Appreciate your best wishes but I assure you, I DO have a clue!
Nobody "needs" a sunroof, leather or alloy wheels either.
I need good forged wheels, sport suspension, stick shift, nice leather and RECARO seats. Yes, I don't need a sunroof.
You may like to move from point A to point B on appliance, but I love to drive the car from point A to point B.
It's the people who really can't afford the extras but they still HAVE to have them!
No, you don't. You want.
I love to drive the car
I love hamburgers cooked on a grill.
and we have convinced ourselves that we all can have all that and a bag of chips regardless of whether we can afford it or not.
Same with houses. House prices have become WAY out of line in proportion to peoples' income.
LOL, that depends... 5 American males do not weight the same as 5 euro males!
It's the people who really can't afford the extras but they still HAVE to have them!
I coudn't agree more! We're so used to high standards of life here in the US that we forget that what we take for granted is an unheard of luxury elsewhere in the world.
I've been here a long time, bus I'm originally form Latin America, and even these toughest economic times dn't come close to what I'd have if I was back there. :shades:
Hi mattandi,
In a way, you have described me / my purchase decision to a T. Over the weekend I purchased a new 2008 base cx-7 sport for $7K off msrp, or $18.6 driveout. MSRP was $24.3K. It does NOT have leather, sunroof, spoiler, etc, but pretty much has all the basics I will need, as well as the same exact "guts" (engine, etc) as the pricier models. Was not expecting to find this vehicle new for that, as I see used ones going for this price. But I figured if I could pick one up for 30% off sticker, and get a decent c-suv for well under $20K, I would potentially be ahead of the game.
Yes I do...
But I think 170HP will be better
GP
Buy used. There are plenty of deals out there, and if someone wants that big truck, or V-8 sport coupe, and can afford the gas, now is the time to buy.
As for having fun with the car because of its big engine, I have no problem with that; I am just saying that doing so is becoming less affordable and, since it is not essential, those big engines can be easily foregone in the times of credit crunch and expensive gasoline.
Besides, fun to drive factor has nothing to do with the size of an engine. Miata is more fun to drive than a Buick.
"I don't want you to bow to me and I certainly didn't "attack" you in amy way. "
Well you kind of did.But frankly I am too tired and stressed tonight to give a damn. Though your particular manufacturer will hold up better than most, it's a tough environment and I look eagerly forward to it's resolution. What's that old saying about when the going gets rough and the tough ? We shall weather this turmoil as others but that's not to say I have to like it.
Wishing it were otherewise does not make it so sir. I appreciate that you do have a clue. Btw what is your opinion on credit default swaps and the real reason fannie/freddie were failed.
tia.
" Do you really think that 1.4L 120hp car can handle 5 male adults
Yes I do...
But I think 170HP will be better .
Right on gp, unless one of those 5 males wants get on Jenny Craig . Or maybe all five.
I am just hoping you are still getting the joke. It is a little inside. A Nissan altima 2.5L (4cyl) is 170HP.... Just trying to drive a little business my way.
But I do have to agree with you. You probably wouldn't fit 5, 375 pound guys in there comfortably.
GP
And at that weight, even three guys would probably exceed the GVWR rating. Is the Altima still only putting out 170 hp with the 4-cyl? I thought the newer ones were a bit more than that now?
Still, I'm sure it's enough power for most driving.
Depends what state you sell out of. I sell in Ma. and we have the same emission codes as California. So the HP is 170.... I think it is 175HP in some states. It may even be as high as 180HP but I am not sure.
GP
I'm not sure I am following the logic on that.
I would think the 0% finance deal from Toyota would be a more predictable response. Top tier buyers are still going to have credit available to them. Cheap money just might prompt them to pull the trigger.
All things being equal I would buy new. Fewer people being financed for new... higher inventories...BINGO!
I'm not sure I am following the logic on that
The logic is very, very simple. Six months ago you might have 30 day inventory of your new car stock. In last few weeks your sales went down because bottom 40% of the deabeats could not be approved for a loan, which translated into some lost sales (not to mention those responsible consumers who decided they might live with their four/six/eight/ten year old cars for a few months more, or perhaps even longer), but the mfr. kept sending you cars anyway. Before you know it you you may land in 120 day inventory. What do you do? Keep paying interest to your bank and keep hoping people would come and buy for your asking price, or perhaps cut your losses?
For too long the industry hinged its growth on selling dreams to marginal buyers - so when margins move and squize out large chunks of the population, you end up with large inventory. 0% may entice some people - but those who qualify are first to keep their wallets closed. So you have both - qualifying buyers NOT WANTING and unqualified/marginal buyers NOT BEING ABLE TO.
2018 430i Gran Coupe
It is really simple as dino said. Americans are inculcated from birth with the notion that decreasing demand pushes prices down. That may or may not motivate dealers to lower prices but even dealers are subject to the law of supply and demand.
tidester, host
SUVs and Smart Shopper
I'm saying I do not understand the thinking that a dealer should lower price in an attempt to help a buyer get qualified. I admit this thinking may not exist to a great degree, I just seemed to be picking up on it.
As to the supply/demand bit. We have seen higher than ever cash and price incentives, and sales continue to plummet. We have probably reached the top of dealers' and manufacturers' ability to buy business. So, they are left with another option. Restrict supply and entice buyers who still can more easily get financed. Weather through a period of elevated inventories as best they can. Some dealers will not survive.
I don't think there's going to be much of that going on, because with the way the economy is now, if a buyer needs help getting qualified, they're probably considered a bad risk and couldn't get financing, so the dealer wouldn't be able do do anything with them anyway.
However, I imagine that if you have excellent credit or could pay cash, they'd be willing to lower the price to move the merchandise.
That's exactly my thinking as well. I've been considering an Accord or a Civic, both of which are considered hot sellers, keeping market conditions in mind. If I were a serious buyer, here's what I'd do.
- Get my trade-in pre-appraised at Carmax so I know what I'm looking at in a worse case scenario on the trade.
- Get pre-qualified at my local credit union, making sure I have a sizeable down payment in cash or trade equity.
- Find a Honda dealer with a sizeable inventory in the type of vehicle I'm seeking.
- Go in, using the Bobst method, and make what some would call here "a ridiculous low ball" offer, an out-the-door price. I'm not sure where that would be in relation to invoice or MSRP but it would be way less than Edmunds TMV.
I'd be professional about it and make sure the sales person knew I was a serious buyer wanting to buy today. But only at my price, kind of what GG did with his Mustang in 2005 when they were so hot.
Yes, to a point. a dealer can only lower prices so far. After that, you begin to take losses. Too many losses means you close the store. Fewer dealers means fewer choices and higher prices for consumers.
NEW STOCK MARKET TERMS:
CEO --Chief Embezzlement Officer.
CFO -- Corporate Fraud Officer.
BULL MARKET -- A random market movement causing an investor to mistake himself for a financial genius.
BEAR MARKET -- A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no sex.
VALUE INVESTING -- The art of buying low and selling lower.
P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing.
BROKER -- What my financial advisor has made me.
STANDARD & POOR -- Your life in a nutshell.
STOCK ANALYST -- Idiot who just downgraded your stock.
STOCK SPLIT -- When your ex-wife and her lawyer split your assets equally between themselves.
FINANCIAL PLANNER -- A guy whose phone has been disconnected.
MARKET CORRECTION -- The day after you buy stocks.
CASH FLOW-- The movement your money makes as it disappears down the toilet.
YAHOO -- What you yell after selling it to some poor sucker for $240 per share.
WINDOWS -- What you jump out of when you're the sucker who bought Yahoo @$240 per share.
INSTITUTIONAL INVESTOR -- Former investor who's now locked up in a nuthouse.
PROFIT -- An archaic word no longer in use.
"I am just hoping you are still getting the joke. It is a little inside. A Nissan altima 2.5L (4cyl) is 170HP.... Just trying to drive a little business my way.
But I do have to agree with you. You probably wouldn't fit 5, 375 pound guys in there comfortably.
I think so GP, as the Who wrote, " won't get fooled again " . Jenny Craig, a lame attempt at humor. Wishing you the best of car sales in this rough environment. Sotto Voce, Nissan Nissan . must buy Nissan . Best of luck and sales mon frere ' .
Yes, of course.
tidester, host
SUVs and Smart Shopper
I think so GP, as the Who wrote, " won't get fooled again " . Jenny Craig, a lame attempt at humor. Wishing you the best of car sales in this rough environment. Sotto Voce, Nissan Nissan . must buy Nissan . Best of luck and sales mon frere ' .
LOL.... you are nuts :P Oh by the way. I googled 3rd party externalties and have a good isea of what you do for a living and can see how it is a sales job. I would also have to assume you would need to be college educated
GP