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20
Patrick
2018 Mar 28, 12:41pm
Patrick
2018 Mar 28, 12:41pm
I worked for an auto financing startup recently, and learned a bunch of interesting things:
* it is illegal to buy a car directly from the manufacturer, just because dealers have enough clout to corrupt our laws like so many industries do
* nonetheless, auto sales are flat to declining overall, and lots of dealerships are barely surviving
* dealers make little to no money on the car itself, but instead make almost all their money on add-ons like floor mats, customization, warranties, and insurance
* it is illegal to buy a car directly from the manufacturer, just because dealers have enough clout to corrupt our laws like so many industries do
* nonetheless, auto sales are flat to declining overall, and lots of dealerships are barely surviving
* dealers make little to no money on the car itself, but instead make almost all their money on add-ons like floor mats, customization, warranties, and insurance
22
zzyzzx
2018 Mar 28, 12:59pm
zzyzzx
2018 Mar 28, 12:59pm
Why do new cars cost so much?
Emissions and safety regulations, most of these safety regulations are completely unnecessary.
Marketing departments requiring all new cars to have greater HP than performance of cars of 20-30 years ago.
Oversized rims
Way too much electronics and/or bells and whistles. Even things like power locks and windows are a waste of money, and only make your car less reliable. But you might not be able to buy a car without them both. Part of the issue here is that cars have gotten so much more expensive that manufacturers feel compelled to include things that used to be only in fully loaded cars as standard now. It's the whole the car is so expensive already, so it needs to have power everything (as in who the fuck buys a $40000 car that doesn't have power everything, even if you don't need it). I also think linger commutes and more time spent in traffic as contributed to this, since if you are spending more time in the car, you can justify buying a more expensive one.
Traction control. Nobody needs that!
4 door cars when you only need 2 doors. How often so you see more when 2 people in a car anyway? Not often!
Headlights used to be cheap, but now cost something like $1000 each if you need to replace one after a wreck.
Emissions and safety regulations, most of these safety regulations are completely unnecessary.
Marketing departments requiring all new cars to have greater HP than performance of cars of 20-30 years ago.
Oversized rims
Way too much electronics and/or bells and whistles. Even things like power locks and windows are a waste of money, and only make your car less reliable. But you might not be able to buy a car without them both. Part of the issue here is that cars have gotten so much more expensive that manufacturers feel compelled to include things that used to be only in fully loaded cars as standard now. It's the whole the car is so expensive already, so it needs to have power everything (as in who the fuck buys a $40000 car that doesn't have power everything, even if you don't need it). I also think linger commutes and more time spent in traffic as contributed to this, since if you are spending more time in the car, you can justify buying a more expensive one.
Traction control. Nobody needs that!
4 door cars when you only need 2 doors. How often so you see more when 2 people in a car anyway? Not often!
Headlights used to be cheap, but now cost something like $1000 each if you need to replace one after a wreck.
23
bob2356
2018 Mar 28, 1:36pm
TwoScoopsPlissken says
Air bags are a federal requirement see the Intermodal Surface Transportation Efficiency Act of 1991. So are crash standards see the National Traffic and Motor Vehicle Safety Act of 1966.
Ca has a waiver for stipiulating emissions standards only, not safety standards. Want to try again to come up with thousands for meeting CA standards and how it drives the price of cars?
California sets the pace. If California mandates higher emission standards or safety options, all the car companies have to obey it and thus make all their cars to conform to California Standards, and therefore more expensive parts must be used. Thus raising the price of the car across the nation.
Air bags alone are several hundred to over a thousand dollars.
Air bags are a federal requirement see the Intermodal Surface Transportation Efficiency Act of 1991. So are crash standards see the National Traffic and Motor Vehicle Safety Act of 1966.
Ca has a waiver for stipiulating emissions standards only, not safety standards. Want to try again to come up with thousands for meeting CA standards and how it drives the price of cars?
24
RWSGFY
2018 Mar 28, 1:48pm
RWSGFY
2018 Mar 28, 1:48pm
zzyzzx says
And it's a good thing IMO because they are usually craptastic.
HEYYOU says(Original tires all seem to wear out early for me)
It's not just you!
And it's a good thing IMO because they are usually craptastic.
26
MrMagic
2018 Mar 28, 1:51pm
MrMagic
2018 Mar 28, 1:51pm
Goran_K says
Honda's are.
My Ridgeline has been problem free except for the air bag recall, which hit just about every Jap car.
Man I thought Honda's were rock solid.
My GM truck has been problem free so far.
Honda's are.
My Ridgeline has been problem free except for the air bag recall, which hit just about every Jap car.
27
RWSGFY
2018 Mar 28, 1:52pm
RWSGFY
2018 Mar 28, 1:52pm
Goran_K says
Let's hope it's something fresh and original...
Nah, not gonna happen.
RafiMaas saysYou know what they say about guys with big trucks?
What?
Let's hope it's something fresh and original...
Nah, not gonna happen.
30
MrMagic
2018 Mar 28, 1:55pm
MrMagic
2018 Mar 28, 1:55pm
Heraclitusstudent says
I deserve more than a basic car, that's why I've never bought one.
If a basic car is all someone can afford, there's a bigger issue concerning employment and how they manage their finances. It ain't the car.
Buy a basic car and you'll be fine.
I deserve more than a basic car, that's why I've never bought one.
If a basic car is all someone can afford, there's a bigger issue concerning employment and how they manage their finances. It ain't the car.
31
joshuatrio
2018 Mar 28, 2:15pm
joshuatrio
2018 Mar 28, 2:15pm
willywonka says
Yes, her car. We want something a little larger for trips, with the ability to tow small objects.
Goran_K says
Nice truck. I wouldn't pay that much for a GM product, but it's still a nice truck.
Heraclitusstudent says
That's what I drive. It's 9 years old, has 80k, sips gas, and has never had an issue. I only drive it to/from the gym.
Patrick says
That's what I keep reading - that apparently there is an auto bubble now - which is why I am waiting/hoping sales tank and I can scoop one up on the cheap.... The idea of paying $40k for a car just seems stupid.
The Highlander, like many SUV’s, is an AWD van. Very reliable. But if handling is your thing, it won’t satisfy you. It’s your wife’s car, right?
Yes, her car. We want something a little larger for trips, with the ability to tow small objects.
Goran_K says
Yeah I paid $70,000 for my truck last year.
Nice truck. I wouldn't pay that much for a GM product, but it's still a nice truck.
Heraclitusstudent says
Why do you think it should cost less?
Buy a Honda civic with 4 cylinders, basic options. You will save a bunch.
That's what I drive. It's 9 years old, has 80k, sips gas, and has never had an issue. I only drive it to/from the gym.
Patrick says
* nonetheless, auto sales are flat to declining overall, and lots of dealerships are barely surviving
That's what I keep reading - that apparently there is an auto bubble now - which is why I am waiting/hoping sales tank and I can scoop one up on the cheap.... The idea of paying $40k for a car just seems stupid.
32
crazydesi
2018 Mar 28, 2:27pm
I was waiting for auto bubble to crash for last two years and could not wait any more so got a infiniti qx60 fully loaded for 50K$, MSRP is 62K$. I was surprised how they are able to give so much discount. This is dublin infiniti.
33
NDrLoR
2018 Mar 28, 2:54pm
NDrLoR
2018 Mar 28, 2:54pm
Heraclitusstudent says
No, easy credit is how people afford it.And payment schedules stretched out to infinity. Today's prices sound high, but a brand new 1963 Oldsmobile Super 88 equipped the way most people liked them with Hydra-Matic, AC, power steering and brakes, all optional in that day, and a couple of trim upgrades came in at about $4,200, and that was considered a mid-level priced car, you saw them everywhere. That's $34,000 in today's money and those cars were financed for 36 months. By the mid-70's with inflated prices exploding, but not incomes, payments were stretched out to 48 months in 1975 to make them more affordable--that's also the first year makers offered what today we call incentives. Eventually we got to the 60 month period, a time over which most cars have reached 100K miles. I used to read Automotive News in the mid-80's and I can remember a proposal by Toyota in which buyers could actually sign over their home as collateral for the privilege of stretching payments over ten years. I couldn't believe anyone would be foolish enough to do such a thing considering the car is going to be virtually worthless by that time, but I'm sure a few gullible people fell for it. My friend in San Antonio worked for a large chain Nissan store for 13 months and from having zero experience became their top seller in four months. He said you would not believe the deals people would make with rolling over negative equity onto the price of a new car as long as they could afford the monthly payment, and management would sign off on it.
35
marcus
2018 Mar 28, 3:44pm
marcus
2018 Mar 28, 3:44pm
TwoScoopsPlissken says
Tenpoundbass says
No no no, you're both wrong. IT's the 8 years of Obama that made cars so fricken expensive. Duh ?
But now Trump is fucking us over on the price of bacon. Have you noticed that TPB ? How come Trump wants us to pay so much for bacon ? Obama used to let Bacon be on sale frequently, but not Trump. 8 dollars for a pound for bacon all the time. I never ate bacon a lot myself - just occasionally - but now it's a rip off.
WE know Trump wants inflation. Maybe he just figures bacon and Trucks are a good trigger for across the board price increases.
Because the Coastal Elites in California set the 'pace'. They don't mind a few thousand extra to virtue signal their Green Superior Morality.
Tenpoundbass says
A lot of Liberal that fucking hate our guts get rich by making your average car starting at $25K and $3500 a year for insurance on your average driver under 35.
I think they are trying to force everyone to take the bus with people they admit are inferior to us,
No no no, you're both wrong. IT's the 8 years of Obama that made cars so fricken expensive. Duh ?
But now Trump is fucking us over on the price of bacon. Have you noticed that TPB ? How come Trump wants us to pay so much for bacon ? Obama used to let Bacon be on sale frequently, but not Trump. 8 dollars for a pound for bacon all the time. I never ate bacon a lot myself - just occasionally - but now it's a rip off.
WE know Trump wants inflation. Maybe he just figures bacon and Trucks are a good trigger for across the board price increases.
36
anonymous
2019 Jan 28, 6:05pm
6 used-vehicle trends to watch in 2019
Analysts warn that what has gone up since the Great Recession must surely come down — at least a little.
The tepid outlook reflects macroeconomic concerns, such as the government shutdown, rising interest rates and the threat of tariffs — in addition to record-high vehicle prices.
"This year is starting to be quite interesting because there's a cloud of uncertainty as we start out" 2019, said Anil Goyal, executive vice president of operations at Black Book.
Here are six trends analysts are seeing:
Flat expectations - New-vehicle sales are widely expected to drop below 17 million after topping 17.3 million in 2018, while used-vehicle sales are expected to be fairly flat.
Pricing pivot - With new-vehicle affordability continuing to challenge many consumers, more of them may turn to the used-vehicle market.
Off-lease peak - With about 300,000 more vehicles coming off lease in 2019 vs. last year, Cox expects lease maturities to peak at 4.1 million units — three years after new light-vehicle sales set the record of 17.6 million.
Greater depreciation - Also, with an expected increase in supply, a higher depreciation rate is forecast for the year, Goyal said. Black Book registered an overall depreciation rate of 12.4 percent at the end of 2018, which is less than the 13.6 percent average over the last five years. The group is forecasting the depreciation rate to swing to a relatively high 15 percent this year, he said.
More SUVs - Three years after light-truck sales first topped 60 percent of the new-vehicle market, analysts expect more SUVs and crossovers to arrive on the used-supply side, which could lead to downward price pressure on those segments.
Long hangover - Chesbrough, of Cox, noted that the Great Recession led to a dearth of model-year '10 vehicles on the used market. "Because we only sold 10.4 million in 2009, well, that means there's nothing to sell, or very little inventory available," Chesbrough said.
The trough year still affects the used-vehicle market, he added. "So you still have a lot of that 10-year-old supply that isn't available, and it's forcing many independent dealers to come to the market and come to the auctions, and [they're] buying newer product than they might normally be selling," he said. That's pushing prices up in those newer model-year vehicles.
Acevedo, of Edmunds, said that in the 8-year-old-plus vehicle segment, "anything just flies off the lot."
More: https://www.autonews.com/used-cars/6-used-vehicle-trends-watch-2019
Analysts warn that what has gone up since the Great Recession must surely come down — at least a little.
The tepid outlook reflects macroeconomic concerns, such as the government shutdown, rising interest rates and the threat of tariffs — in addition to record-high vehicle prices.
"This year is starting to be quite interesting because there's a cloud of uncertainty as we start out" 2019, said Anil Goyal, executive vice president of operations at Black Book.
Here are six trends analysts are seeing:
Flat expectations - New-vehicle sales are widely expected to drop below 17 million after topping 17.3 million in 2018, while used-vehicle sales are expected to be fairly flat.
Pricing pivot - With new-vehicle affordability continuing to challenge many consumers, more of them may turn to the used-vehicle market.
Off-lease peak - With about 300,000 more vehicles coming off lease in 2019 vs. last year, Cox expects lease maturities to peak at 4.1 million units — three years after new light-vehicle sales set the record of 17.6 million.
Greater depreciation - Also, with an expected increase in supply, a higher depreciation rate is forecast for the year, Goyal said. Black Book registered an overall depreciation rate of 12.4 percent at the end of 2018, which is less than the 13.6 percent average over the last five years. The group is forecasting the depreciation rate to swing to a relatively high 15 percent this year, he said.
More SUVs - Three years after light-truck sales first topped 60 percent of the new-vehicle market, analysts expect more SUVs and crossovers to arrive on the used-supply side, which could lead to downward price pressure on those segments.
Long hangover - Chesbrough, of Cox, noted that the Great Recession led to a dearth of model-year '10 vehicles on the used market. "Because we only sold 10.4 million in 2009, well, that means there's nothing to sell, or very little inventory available," Chesbrough said.
The trough year still affects the used-vehicle market, he added. "So you still have a lot of that 10-year-old supply that isn't available, and it's forcing many independent dealers to come to the market and come to the auctions, and [they're] buying newer product than they might normally be selling," he said. That's pushing prices up in those newer model-year vehicles.
Acevedo, of Edmunds, said that in the 8-year-old-plus vehicle segment, "anything just flies off the lot."
More: https://www.autonews.com/used-cars/6-used-vehicle-trends-watch-2019
37
RWSGFY
2019 Jan 28, 6:41pm
RWSGFY
2019 Jan 28, 6:41pm
bob2356 says
Yep. And then people jump into these wonderful performance machines and proceed driving them like it's fucking Model T with half of cylinders not firing...
Because people want them to do so much. Power everything, safety out the wazoo, more electronics than the space shuttle, sophisticated suspension and steering, ABS, horsepower out the wazoo, 6-8 speed transmissions, brakes that would have been formula 1 50 years ago, great build quality. A 2016 honda accord runs the quarter in 14.4 with the ac running, a 69 chevelle ss 396 muscle car did it in 16.3.
Yep. And then people jump into these wonderful performance machines and proceed driving them like it's fucking Model T with half of cylinders not firing...
38
clambo
2019 Jan 29, 5:28am
Cars are too complex and fancy to be cheap sometimes.
My father bought a new Volvo in 2013 "loaded" "leather" etc.
It has some stuff that I could do without; extra airbags (4 in the front). front anti collision radar, front parking radar, rear parking radar, side blind spot radar, rear camera, electric windows, moon roof, GPS,
FYI, a car which is 1-3 years old is usually a great discount over a new car on the lot.
My father bought a new Volvo in 2013 "loaded" "leather" etc.
It has some stuff that I could do without; extra airbags (4 in the front). front anti collision radar, front parking radar, rear parking radar, side blind spot radar, rear camera, electric windows, moon roof, GPS,
FYI, a car which is 1-3 years old is usually a great discount over a new car on the lot.
40
Tenpoundbass
2019 Jan 29, 6:47am
Tenpoundbass
2019 Jan 29, 6:47am
clambo says
Used cars are still over the $10K mark.
Even 8 year old cars are pulling in $8K or more. It used to be once a car got past 7 years old $3500 was about max they could get. That was for a higher end car, economy cars were under 2 grand.
Cash for clunkers was all about supporting an auto business where the crappy coup starts at $23K and the average car payment is $400 and $3 to $5 thousand a year for insurance.
Thanks Obama!
Before Cash for clunkers you could find a car from the 70's or 80's for under a Grand. They were cars regardless what was wrong mechanically you could fix it for under a Grand. Most problems were well under 300 bucks. Water pumps and alternators(most common problem) were around 70 bucks and you could fix it yourself.
Now these new cars they are expensive as used cars as long as they paint, body and interior is in good condition and they still run. But as soon as you get serious engine or computer problems, they are junked. Because they cost more to fix major problems than they are worth, and your average car owner can't work on them.
FYI, a car which is 1-3 years old is usually a great discount over a new car on the lot.
Used cars are still over the $10K mark.
Even 8 year old cars are pulling in $8K or more. It used to be once a car got past 7 years old $3500 was about max they could get. That was for a higher end car, economy cars were under 2 grand.
Cash for clunkers was all about supporting an auto business where the crappy coup starts at $23K and the average car payment is $400 and $3 to $5 thousand a year for insurance.
Thanks Obama!
Before Cash for clunkers you could find a car from the 70's or 80's for under a Grand. They were cars regardless what was wrong mechanically you could fix it for under a Grand. Most problems were well under 300 bucks. Water pumps and alternators(most common problem) were around 70 bucks and you could fix it yourself.
Now these new cars they are expensive as used cars as long as they paint, body and interior is in good condition and they still run. But as soon as you get serious engine or computer problems, they are junked. Because they cost more to fix major problems than they are worth, and your average car owner can't work on them.
41
zzyzzx
2019 Jan 29, 6:49am
zzyzzx
2019 Jan 29, 6:49am
clambo says
This!!!
I don't want oversized rims, traction control, air bags, power windows, power door locks, more then 2 doors, power mirrors, anti-lock brakes, and a bunch of other things I can't think of right now that are unnecessary. The only relatively new things I want in a car are bluetooth / MP3 player / reverse camera built into the stereo system, and a built in dash cam.
Cars are too complex and fancy to be cheap sometimes.
My father bought a new Volvo in 2013 "loaded" "leather" etc.
It has some stuff that I could do without; extra airbags (4 in the front). front anti collision radar, front parking radar, rear parking radar, side blind spot radar, rear camera, electric windows, moon roof, GPS,
This!!!
I don't want oversized rims, traction control, air bags, power windows, power door locks, more then 2 doors, power mirrors, anti-lock brakes, and a bunch of other things I can't think of right now that are unnecessary. The only relatively new things I want in a car are bluetooth / MP3 player / reverse camera built into the stereo system, and a built in dash cam.
42
zzyzzx
2019 Jan 29, 6:51am
zzyzzx
2019 Jan 29, 6:51am
Tenpoundbass says
New alternators for most cars, even old ones are way more than that now. I have no idea why a 75A alternator now costs almost as much as one that puts out twice as much current. But even $70 is too much when you can just replace the brushes for around $10 or maybe a voltage regulator or diode pack.
Water pumps and alternators(most common problem) were around 70 bucks and you could fix it yourself.
New alternators for most cars, even old ones are way more than that now. I have no idea why a 75A alternator now costs almost as much as one that puts out twice as much current. But even $70 is too much when you can just replace the brushes for around $10 or maybe a voltage regulator or diode pack.
43
HeadSet
2019 Jan 29, 7:16am
HeadSet
2019 Jan 29, 7:16am
I don't want oversized rims
Yeah, whats is with the oversize rims, even on F-150s. It is as if everyone wants to emulate the ghetto-mobile look of a pimped out 90's Caprice. Oversize rims make for a harsher ride.
Yeah, whats is with the oversize rims, even on F-150s. It is as if everyone wants to emulate the ghetto-mobile look of a pimped out 90's Caprice. Oversize rims make for a harsher ride.
44
RWSGFY
2019 Jan 29, 7:23am
RWSGFY
2019 Jan 29, 7:23am
zzyzzx says
It's the thing which prevents muffler bearings from running out of blinker fluid.
NuttBoxer saysa recall for a battery solenoid,
What the fuck is a battery solenoid???
It's the thing which prevents muffler bearings from running out of blinker fluid.
45
Tenpoundbass
2019 Jan 29, 7:56am
Tenpoundbass
2019 Jan 29, 7:56am
DASKAA says
My Wife would pay to fix that.
It's the thing which prevents muffler bearings from running out of blinker fluid.
My Wife would pay to fix that.
46
Goran_K
2019 Jan 29, 8:33am
Goran_K
2019 Jan 29, 8:33am
DASKAA says
Never ever leave home without some spare blinker fluid.
It's the thing which prevents muffler bearings from running out of blinker fluid.
Never ever leave home without some spare blinker fluid.
47
clambo
2019 Jan 29, 2:15pm
Reading tenpoundbass I was feeling bad; I had a 71 Chevy Nova in 1984 which I should have kept forever.
It had a few little problems but I fixed them; I took out the radiator and a guy repaired it; I got a new water pump for it for $15 and installed it. It had a straight 6 cylinder engine which ran like a top. Driving the car felt like it had an electric motor, no noise and plenty of torque.
The brakes were the sore point; no boost and four wheel drum brakes meant I had to stand on them to stop the car.
I sold it to some hippies for $500 and now I regret it.
The car was great for San Francisco runs up Hwy 1.
It had a few little problems but I fixed them; I took out the radiator and a guy repaired it; I got a new water pump for it for $15 and installed it. It had a straight 6 cylinder engine which ran like a top. Driving the car felt like it had an electric motor, no noise and plenty of torque.
The brakes were the sore point; no boost and four wheel drum brakes meant I had to stand on them to stop the car.
I sold it to some hippies for $500 and now I regret it.
The car was great for San Francisco runs up Hwy 1.
48
krc
2019 Jan 29, 3:13pm
Wife has been pleased with a Honda Fit. Good basic commuter car, no frills. But, "hecho mexico". As such, we had an initial problem with AC not getting cold. Dealer found that some packaging was not removed when a vent was put into the car... Odd. Car is <17k though....
49
HeadSet
2019 Jan 29, 3:16pm
HeadSet
2019 Jan 29, 3:16pm
Tenpoundbass says
Then definitely take care of any undersized and poorly performing seminal fluid injector.
DASKAA saysIt's the thing which prevents muffler bearings from running out of blinker fluid.
My Wife would pay to fix that.
Then definitely take care of any undersized and poorly performing seminal fluid injector.
50
ForcedTQ
2019 Jan 29, 4:06pm
Buying a BRAND NEW automobile without having the rest of your wealth strategy figured out, in progress, or otherwise at the point you could retire tomorrow, is foolish at best.
You are taking a direct fucking hit with the depreciation. These stupid things ARE NOT investments for the most part, with 99% of them going only down in value.
Not to mention the cost of insurance, registration, and (for most people) financing that screw you out of even more of your income. Higher sale price equals more paying of all 3 of those. Yeah, you may get lucky and not have ANY repairs over the time you own the car, but the previous mentioned costs plus depreciation will likely cost much more than repair costs on comparable used auto.
If you want to be wealthy, or otherwise financially secure, own no more in items with engines than 50% of your annual take home...
You are taking a direct fucking hit with the depreciation. These stupid things ARE NOT investments for the most part, with 99% of them going only down in value.
Not to mention the cost of insurance, registration, and (for most people) financing that screw you out of even more of your income. Higher sale price equals more paying of all 3 of those. Yeah, you may get lucky and not have ANY repairs over the time you own the car, but the previous mentioned costs plus depreciation will likely cost much more than repair costs on comparable used auto.
If you want to be wealthy, or otherwise financially secure, own no more in items with engines than 50% of your annual take home...
51
anonymous
2019 Feb 20, 2:22pm
Seven months worth of Chevy Corvettes are sitting unsold on dealer lots - That's about 9,000 unsold models
The next-generation Chevy Corvette is coming. We don't know when and we don't know where the mid-engine C8 will finally make its debut, but we've been watching and waiting for years now. There was hope that the new model might debut at last month's Detroit Auto Show, but nothing came to pass. As much talk as there's been about the new model, we can't forget that the C7 is still in production at GM's factory in Kentucky. It seems production has far outpaced demand, as CorvetteBlogger reports that there are about 9,000 unsold cars sitting on dealer lots.
The data comes from eInventoryNow.com, a site that connects dealers to help move and trade unsold inventory. 9,000 cars equates to 232 days worth of inventory, a number calculated using the average daily sales over a 30-day period. That's more than any other GM product listed aside from the all-new Chevy Blazer. The number can fluctuate based on how well a car is selling (and Corvette sales could see a seasonal uptick after the winter months pass), but as it stands, there are more than seven months worth of Vettes sitting around on dealer lots. CorvetteBlogger says that nearly 180,000 C7s have been sold since the car went on sale in the summer of 2013.
There are a lot of reasons that dealers keep ordering a car that's sales are slowing. Allocation is one. If a dealer doesn't order enough C7s, it's likely to get fewer C8s. GM could also be padding numbers so there are cars available while the plant is retooled for the C8. Poking around the internet might reveal some pretty good deals.
https://www.autoblog.com/2019/02/20/chevy-corvette-unsold-seven-months-supply/?ncid=edlinkusauto00000021&yptr=yahoo
The next-generation Chevy Corvette is coming. We don't know when and we don't know where the mid-engine C8 will finally make its debut, but we've been watching and waiting for years now. There was hope that the new model might debut at last month's Detroit Auto Show, but nothing came to pass. As much talk as there's been about the new model, we can't forget that the C7 is still in production at GM's factory in Kentucky. It seems production has far outpaced demand, as CorvetteBlogger reports that there are about 9,000 unsold cars sitting on dealer lots.
The data comes from eInventoryNow.com, a site that connects dealers to help move and trade unsold inventory. 9,000 cars equates to 232 days worth of inventory, a number calculated using the average daily sales over a 30-day period. That's more than any other GM product listed aside from the all-new Chevy Blazer. The number can fluctuate based on how well a car is selling (and Corvette sales could see a seasonal uptick after the winter months pass), but as it stands, there are more than seven months worth of Vettes sitting around on dealer lots. CorvetteBlogger says that nearly 180,000 C7s have been sold since the car went on sale in the summer of 2013.
There are a lot of reasons that dealers keep ordering a car that's sales are slowing. Allocation is one. If a dealer doesn't order enough C7s, it's likely to get fewer C8s. GM could also be padding numbers so there are cars available while the plant is retooled for the C8. Poking around the internet might reveal some pretty good deals.
https://www.autoblog.com/2019/02/20/chevy-corvette-unsold-seven-months-supply/?ncid=edlinkusauto00000021&yptr=yahoo
52
anonymous
2019 Feb 28, 2:21am
U.S. auto sales are forecast to drop slightly for a second straight month in February as the industry struggles to gain traction in the new year.
Estimates released by three leading forecasters see declines of as much as 2.6 percent from February 2018 levels, while Cox Automotive projects a 0.7 percent gain.
Forecasts of the seasonally adjusted annual sales rate range from 16.6 million to Cox's 17.1 million. Those would be in line with analysts' expectations for the year, which is forecast to come in below 17 million for the first time since 2014.
A February drop would mark the second time in three years that the industry has started the year with two consecutive monthly declines. The last time that happened, in 2017, the industry went on to record its only annual sales setback since the Great Recession. Automakers are scheduled to report their February results on Friday.
Among those anticipating declines, TrueCar's ALG estimates a 2.6 percent slide (and a SAAR of 16.6 million), Edmunds projects a 2.2 percent drop (16.7 million SAAR), and J.D. Power/LMC Automotive sees a 0.9 percent decrease (16.8 million SAAR).
January sales slipped 1 percent after the industry eked out a 0.6 percent advance to 17.3 million sales for 2018. At the start of last year, few analysts expected annual sales to top 17 million.
Chill factor
Analysts show no sign of consensus on how the extremely cold weather in January played out in February's results. Cox Automotive says last month's polar vortex, which sent temperatures plunging into sub-double-digits in parts of the Upper Midwest, may have boosted February traffic.
"Some lift in February sales is expected as delayed vehicle buyers complete their purchases," Cox senior economist Charlie Chesbrough said in a statement. He cautioned that if February comes in weaker than expected, "we may be in the early stages of the vehicle market's shift to a much slower pace."
Edmunds said its forecast of slower sales indicates there was little pent-up demand following the extreme cold and a 35-day partial U.S. government shutdown.
"It's easy to point fingers at anomalous factors like the polar vortex as the reason for a sales slowdown, but the numbers don't show that's the case," Jeremy Acevedo, Edmunds' manager of industry analysis, said in a statement.
Edmunds also said the Presidents Day weekend, which marked the first big sales "event" of the year, did not give a significant boost to the rest of February. "Although the drop-off in sales is rather subtle year over year, February is shaping up to be a good barometer of the gradual sales decline we expect through 2019," Acevedo said. "We're really starting to see a slump in retail demand that stems from the growing costs of new-car purchases."
J.D. Power's projections, which are based on the first 14 selling days of the month, include a 2.4 percent decline in retail sales, those delivered to individual customers. There were 24 selling days last month, the same as in February 2018.
Affordability concern
Rising interest rates and transaction prices are the main factors weighing on new-vehicle sales, Edmunds said. Cox, too, said it expects affordability could affect the market going forward, as well as tariffs, increased off-lease volume, and shrinking demand for cars vs. light trucks.
ALG forecasts the average transaction price for new light vehicles in February was up 3 percent to $34,565, while incentives as a percentage of ATP were down 3.7 percent.
J.D. Power estimates ATPs are on pace to hit $33,267 in February, marking an all-time high for the month. At the same time, incentive spending is expected to be down on an annual basis for an eighth straight month at $3,721 per unit, a drop of $161 from February 2018.
Among automakers, Edmunds is estimating a 5.8 percent decline at General Motors, which does not release monthly results. Edmunds also sees a slip of 0.8 percent for Ford Motor Co., and a 1.9 percent decrease for Fiat Chrysler Automobiles. It's expecting declines of 3 percent for Toyota Motor, 1.4 percent for American Honda and 13 percent for Nissan Group.
Volkswagen/Audi's sales are projected to drop 3.3 percent, while Hyundai/Kia is estimated to be the lone increase at just 0.6 percent, said Edmunds.
Cox estimates GM's sales dipped 1.3 percent in February, while Ford's fell 1.7 percent and FCA's rose 2.5 percent. It sees declines of 1.2 percent at Toyota, 0.5 percent at Honda, 6.1 percent for Nissan and 1.1 percent for Volkswagen. Cox forecasts Hyundai/Kia's sales grew 3.7 percent.
J.D. Power's Thomas King, senior vice president of data and analytics, noted that January and February are among the weakest months of the year in terms of retail sales volume. He said that the two months, which command more than 16 percent of calendar space, comprised just 13.5 percent of last year's annual retail sales total.
https://www.autonews.com/sales/us-auto-sales-projected-fall-again-feb
Estimates released by three leading forecasters see declines of as much as 2.6 percent from February 2018 levels, while Cox Automotive projects a 0.7 percent gain.
Forecasts of the seasonally adjusted annual sales rate range from 16.6 million to Cox's 17.1 million. Those would be in line with analysts' expectations for the year, which is forecast to come in below 17 million for the first time since 2014.
A February drop would mark the second time in three years that the industry has started the year with two consecutive monthly declines. The last time that happened, in 2017, the industry went on to record its only annual sales setback since the Great Recession. Automakers are scheduled to report their February results on Friday.
Among those anticipating declines, TrueCar's ALG estimates a 2.6 percent slide (and a SAAR of 16.6 million), Edmunds projects a 2.2 percent drop (16.7 million SAAR), and J.D. Power/LMC Automotive sees a 0.9 percent decrease (16.8 million SAAR).
January sales slipped 1 percent after the industry eked out a 0.6 percent advance to 17.3 million sales for 2018. At the start of last year, few analysts expected annual sales to top 17 million.
Chill factor
Analysts show no sign of consensus on how the extremely cold weather in January played out in February's results. Cox Automotive says last month's polar vortex, which sent temperatures plunging into sub-double-digits in parts of the Upper Midwest, may have boosted February traffic.
"Some lift in February sales is expected as delayed vehicle buyers complete their purchases," Cox senior economist Charlie Chesbrough said in a statement. He cautioned that if February comes in weaker than expected, "we may be in the early stages of the vehicle market's shift to a much slower pace."
Edmunds said its forecast of slower sales indicates there was little pent-up demand following the extreme cold and a 35-day partial U.S. government shutdown.
"It's easy to point fingers at anomalous factors like the polar vortex as the reason for a sales slowdown, but the numbers don't show that's the case," Jeremy Acevedo, Edmunds' manager of industry analysis, said in a statement.
Edmunds also said the Presidents Day weekend, which marked the first big sales "event" of the year, did not give a significant boost to the rest of February. "Although the drop-off in sales is rather subtle year over year, February is shaping up to be a good barometer of the gradual sales decline we expect through 2019," Acevedo said. "We're really starting to see a slump in retail demand that stems from the growing costs of new-car purchases."
J.D. Power's projections, which are based on the first 14 selling days of the month, include a 2.4 percent decline in retail sales, those delivered to individual customers. There were 24 selling days last month, the same as in February 2018.
Affordability concern
Rising interest rates and transaction prices are the main factors weighing on new-vehicle sales, Edmunds said. Cox, too, said it expects affordability could affect the market going forward, as well as tariffs, increased off-lease volume, and shrinking demand for cars vs. light trucks.
ALG forecasts the average transaction price for new light vehicles in February was up 3 percent to $34,565, while incentives as a percentage of ATP were down 3.7 percent.
J.D. Power estimates ATPs are on pace to hit $33,267 in February, marking an all-time high for the month. At the same time, incentive spending is expected to be down on an annual basis for an eighth straight month at $3,721 per unit, a drop of $161 from February 2018.
Among automakers, Edmunds is estimating a 5.8 percent decline at General Motors, which does not release monthly results. Edmunds also sees a slip of 0.8 percent for Ford Motor Co., and a 1.9 percent decrease for Fiat Chrysler Automobiles. It's expecting declines of 3 percent for Toyota Motor, 1.4 percent for American Honda and 13 percent for Nissan Group.
Volkswagen/Audi's sales are projected to drop 3.3 percent, while Hyundai/Kia is estimated to be the lone increase at just 0.6 percent, said Edmunds.
Cox estimates GM's sales dipped 1.3 percent in February, while Ford's fell 1.7 percent and FCA's rose 2.5 percent. It sees declines of 1.2 percent at Toyota, 0.5 percent at Honda, 6.1 percent for Nissan and 1.1 percent for Volkswagen. Cox forecasts Hyundai/Kia's sales grew 3.7 percent.
J.D. Power's Thomas King, senior vice president of data and analytics, noted that January and February are among the weakest months of the year in terms of retail sales volume. He said that the two months, which command more than 16 percent of calendar space, comprised just 13.5 percent of last year's annual retail sales total.
https://www.autonews.com/sales/us-auto-sales-projected-fall-again-feb
53
CBOEtrader
2019 Feb 28, 2:49am
CBOEtrader
2019 Feb 28, 2:49am
marcus says
The bacon and trucks inflation index? so simple its brilliant. That's why we keep @Marcus around.
Trucks are interesting. OTOH the technology is always improving so I get why they are so expensive...but then why are flat screen TV's $80/each at walmart?
bacon and Trucks are a good trigger for across the board price increases.
The bacon and trucks inflation index? so simple its brilliant. That's why we keep @Marcus around.
Trucks are interesting. OTOH the technology is always improving so I get why they are so expensive...but then why are flat screen TV's $80/each at walmart?
54
just_passing_through
2019 Feb 28, 8:07pm
just_passing_through
2019 Feb 28, 8:07pm
ForcedTQ says
Mostly agree with you but...
I sold my Jeep and bought a brand new 2002 accord V6. I have an enormous set of tools from owning that Jeep. The accord has been worry free for 16.5 years. If you keep it long enough and don't buy American it's not so bad. Paid it off in less than 3 years and my insurance is a breeze these days.
Most American's are similar to my sister though. She gets a new car every 2 years and swims in debt. For the last decade that isn't as irresponsible as it sounds though. Up until recently used cars held up their value pretty well and so dealerships would cycle people like her into new ones easily. A couple times she even came out ahead.
The used car market has been tanking recently though which will make that sort of activity more painful and might finally bring on the infamous Carmageddon I keep reading about.
Buying a BRAND NEW automobile without having the rest of your wealth strategy figured out, in progress, or otherwise at the point you could retire tomorrow, is foolish at best.
Mostly agree with you but...
I sold my Jeep and bought a brand new 2002 accord V6. I have an enormous set of tools from owning that Jeep. The accord has been worry free for 16.5 years. If you keep it long enough and don't buy American it's not so bad. Paid it off in less than 3 years and my insurance is a breeze these days.
Most American's are similar to my sister though. She gets a new car every 2 years and swims in debt. For the last decade that isn't as irresponsible as it sounds though. Up until recently used cars held up their value pretty well and so dealerships would cycle people like her into new ones easily. A couple times she even came out ahead.
The used car market has been tanking recently though which will make that sort of activity more painful and might finally bring on the infamous Carmageddon I keep reading about.
55
BayArea
2019 Feb 28, 8:19pm
BayArea
2019 Feb 28, 8:19pm
ForcedTQ says
Spot on!
So many foolish dummies swimming in debt with the latest new car.
Buying a BRAND NEW automobile without having the rest of your wealth strategy figured out, in progress, or otherwise at the point you could retire tomorrow, is foolish at best
Spot on!
So many foolish dummies swimming in debt with the latest new car.
56
just_passing_through
2019 Feb 28, 8:28pm
just_passing_through
2019 Feb 28, 8:28pm
Yeah, I'm actively searching Craigslist for a new used car lately. I don't want to have to drive my next car for 17 years to make the numbers work out haha...
Actually I'm thinking of picking up another Accord coupe V6 which they quit making after 2016. Maybe hold it 6-7 years and then buy an electric after I own a house.
Actually I'm thinking of picking up another Accord coupe V6 which they quit making after 2016. Maybe hold it 6-7 years and then buy an electric after I own a house.
57
BayArea
2019 Feb 28, 8:33pm
BayArea
2019 Feb 28, 8:33pm
I’m a car guy, love sports and muscle cars... but I hate owning them.
I get my fix by renting a Corvette or Porsche two weekends a year and pass up all the ownership headaches.
I get my fix by renting a Corvette or Porsche two weekends a year and pass up all the ownership headaches.
58
SunnyvaleCA
2019 Feb 28, 9:42pm
On the subject: New cars cost too much.
Compared to 1970s, 1980s, and 1990s cars, the cost is up moderately (adjusted for inflation). But consider a 3 year old used car with 50k miles. That car is SO MUCH BETTER than a brand new "old" car for "most people" in EVERY WAY. And it's WAAAAAAY cheaper. Buy yourself a slightly used car and be VERY GLAD to live in the 2010's. There has been no better time in history to buy a car (new or used).
Let's drag race a 3 year old 4-cylinder Honda Accord automatic ($12k) verses Magnum P.I.'s Ferrari, which cost more than that in the 1970s. Should we even talk about a 4-year-old V6 Accord? Reliability? Maintenance? Ha!
We live in the greatest era of cars. By far. Lowest prices ever. Seriously... stop complaining.
Compared to 1970s, 1980s, and 1990s cars, the cost is up moderately (adjusted for inflation). But consider a 3 year old used car with 50k miles. That car is SO MUCH BETTER than a brand new "old" car for "most people" in EVERY WAY. And it's WAAAAAAY cheaper. Buy yourself a slightly used car and be VERY GLAD to live in the 2010's. There has been no better time in history to buy a car (new or used).
Let's drag race a 3 year old 4-cylinder Honda Accord automatic ($12k) verses Magnum P.I.'s Ferrari, which cost more than that in the 1970s. Should we even talk about a 4-year-old V6 Accord? Reliability? Maintenance? Ha!
We live in the greatest era of cars. By far. Lowest prices ever. Seriously... stop complaining.
59
MrMagic
2019 Feb 28, 9:46pm
MrMagic
2019 Feb 28, 9:46pm
ForcedTQ says
If people followed that rule, EVERY car maker would be out of business and bankrupt, since 3/4 of the population live paycheck to paycheck.
ForcedTQ says
That can be said with just about everything you buy new. Appliances, furniture, jewelry, firearms, electronics, motorcycles, etc. Sometimes, people just want to be the FIRST owner and don't like sloppy seconds, and will take the depreciation.
ForcedTQ says
Also not true. I bought a brand new Honda Ridgeline. First, it held it's value amazingly, I've seen some four years old selling for a few thousand less than new price. Plus, I haven't had to do a single repair over five years except for standard maintainence items. There's no way a used vehicle would have that type of track record.
ForcedTQ says
Who ever said buying a new car was an investment? Every one knows it's a depreciable asset.
Hell, I just bought wifey a brand new Subaru BRZ two weeks ago. It, being a "investment", was the furthest from my mind. It's a play toy. Period. and we'll be the first ones to stain the seats, no sloppy seconds from a previous owner.
Buying a BRAND NEW automobile without having the rest of your wealth strategy figured out, in progress, or otherwise at the point you could retire tomorrow, is foolish at best.
If people followed that rule, EVERY car maker would be out of business and bankrupt, since 3/4 of the population live paycheck to paycheck.
ForcedTQ says
You are taking a direct fucking hit with the depreciation. These stupid things ARE NOT investments for the most part, with 99% of them going only down in value.
That can be said with just about everything you buy new. Appliances, furniture, jewelry, firearms, electronics, motorcycles, etc. Sometimes, people just want to be the FIRST owner and don't like sloppy seconds, and will take the depreciation.
ForcedTQ says
Yeah, you may get lucky and not have ANY repairs over the time you own the car, but the previous mentioned costs plus depreciation will likely cost much more than repair costs on comparable used auto.
Also not true. I bought a brand new Honda Ridgeline. First, it held it's value amazingly, I've seen some four years old selling for a few thousand less than new price. Plus, I haven't had to do a single repair over five years except for standard maintainence items. There's no way a used vehicle would have that type of track record.
ForcedTQ says
These stupid things ARE NOT investments for the most part, with 99% of them going only down in value.
Who ever said buying a new car was an investment? Every one knows it's a depreciable asset.
Hell, I just bought wifey a brand new Subaru BRZ two weeks ago. It, being a "investment", was the furthest from my mind. It's a play toy. Period. and we'll be the first ones to stain the seats, no sloppy seconds from a previous owner.
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And it's EASY to get these cars well over $40-45k without even trying.
I've been reading on the joys of sub prime auto lending lately, but am wondering when the music is going to stop - and people quit financing cars for 7+ years.
I pay cash for my whips.