You want cars ? You got 'em !

Here is one video example of cars stacked up - at Long Beach Port !
http://www.youtube.c...player_embedded

As I understand it, they are also stacked up even worse overseas. you name the brand they got cars coming out the ying yang. Miles upon miles of every brand from Germany to asia. Porches, Mercedes, VW's, Audi's, Toyota's, Nissan's, Honda's. They are stacked up in or near all major ports, and they are packed into dealer car lots. And they are now trying to find places by the factories.

Basically, this is just the same as the housing market. The builders had to stop building bc of the glut. Now the car makers need to do the same. They all need to take at least a 6 month hiatus to run the inventory down, maybe longer.

There is no bailout big enough to cover this mess. People aren't buying, they are broke, they are in debt up to their eyeballs, their 401k's have been crushed, their home values have dropped 20 to 40%, or more, they are upside down on their mortgages or they are in foreclosure.

there are an awlful lot of businesses going to be affected by this, up and down the food chain. evne major price drops or rabates or free financing aren't enough to spur demand. Why ? nobody has any money, they are trying to pay down debt and many are simply fearing their job security future.

Here is one video example of cars stacked up - at Long Beach Port !
http://www.youtube.c...player_embedded

As I understand it, they are also stacked up even worse overseas. you name the brand they got cars coming out the ying yang. Miles upon miles of every brand from Germany to asia. Porches, Mercedes, VW's, Audi's, Toyota's, Nissan's, Honda's. They are stacked up in or near all major ports, and they are packed into dealer car lots. And they are now trying to find places by the factories.

Basically, this is just the same as the housing market. The builders had to stop building bc of the glut. Now the car makers need to do the same. They all need to take at least a 6 month hiatus to run the inventory down, maybe longer.

There is no bailout big enough to cover this mess. People aren't buying, they are broke, they are in debt up to their eyeballs, their 401k's have been crushed, their home values have dropped 20 to 40%, or more, they are upside down on their mortgages or they are in foreclosure.

there are an awlful lot of businesses going to be affected by this, up and down the food chain. evne major price drops or rabates or free financing aren't enough to spur demand. Why ? nobody has any money, they are trying to pay down debt and many are simply fearing their job security future.

I'm surprised the dealers are not offering better deals as of yet. Perhaps they will as the lots pile up...

I believe we are going to find out just how many people lived their entire lives in a world of fantasy on credit. So very many people are so very overextended, have tons of debt, and they have no cash to buy anything with let alone a car. If people can't get loans for cars, they aint gonna buy them. If they are losing their job, they ain't gonna get a loan. If they fear losing their job, they ain't gonna even apply for a loan. So what industries have been affected thus far where people have lost their jobs, or greatly fear losing their job ? Here are just a few. I'm sure im missing many more : Home builders/ housing Realtors Mortgage brokers Building suppliers Auto makers Tier 1 auto suppliers Tier 2 and Tier 3 suppliers Banks and Bankers Many on Wallstreet Thousands of retailers and the people who work for them Accountants who work for all of these people and industries Hair salons, and barbers who handle all these people in these industries Restaurants ditto to above Pet stores ditto to above Electronic stores ditto to above Appliance stores ditto to above Maids ditto to above home remodelers ditto to above Carpet suppliers ditto to above Ethanol producers getting hammered Aletrnative energy suppliers and manufacturers are getting hammered Commodity suppliers are getting hammered (mines and production) Manufacturers who supply to the miners and producers Cement and aggregrate industry who supply to homebuilders and commercial builders. Blacktop suppliers Roofers, carpenters, electricians, joe the plumbers are getting layed off or hammered on less hours Discretionary entertainment including people who provide things like music lessons, sports training/tutoring Insurance agents getting hammered - fewer homes and cars. Mnay homes being foreclosed and people not making payments Dentists are seeing less patients (for most people this becomes discretionary if they dont have any insurance and majority dont) Cosmetic surgery is being done less, so those doctors are hurting

So even if dealers drop the prices a lot, i dont see much happening, except the people who still have jobs and making good money, will get a great deal, but they were likely going to buy anyway if the time for buying a new car was near for them. But many other people have cars less than 2 or 3 years old. They all could take these cars to 10 or 12 years if they have to. I would say cars are the single biggest waste of money out there. People spend way too much on them. if people had any sense in their noggons, they'd buy a car used, 2 or 3 years old and keep it till it gets to 200k miles or 10 years old. They could get great pre-owned cars, especially now, for less than $12k easy. These are the same folks who are likely spending $25k to $35k for a new car every few years, not paying them off, and just trading in and eating tons of depreciation in the process. What a tremednous waste of wealth. And most people could get by easily with far less house, which would mean far less furniture and STUFF to fill them with, and most importantly far lower house payments, and far less overall indebtedness.

Edited by nimblebear, 28 December 2008 - 01:28 AM.

If people had any sense in their noggons, they'd buy a car used, 2 or 3 years old and keep it till it gets to 200k miles or 10 years old. They could get great pre-owned cars, especially now, for less than $12k easy. These are the same folks who are likely spending $25k to $35k for a new car every few years, not paying them off, and just trading in and eating tons of depreciation in the process. What a tremednous waste of wealth.

And most people could get by easily with far less house, which would mean far less furniture and STUFF to fill them with, and most importantly far lower house payments, and far less overall indebtedness.

Hardly "the American way"..

So even if dealers drop the prices a lot, i dont see much happening, except the people who still have jobs and making good money, will get a great deal, but they were likely going to buy anyway if the time for buying a new car was near for them. But many other people have cars less than 2 or 3 years old. They all could take these cars to 10 or 12 years if they have to.

I would say cars are the single biggest waste of money out there. People spend way too much on them. if people had any sense in their noggons, they'd buy a car used, 2 or 3 years old and keep it till it gets to 200k miles or 10 years old. They could get great pre-owned cars, especially now, for less than $12k easy. These are the same folks who are likely spending $25k to $35k for a new car every few years, not paying them off, and just trading in and eating tons of depreciation in the process. What a tremednous waste of wealth.

And most people could get by easily with far less house, which would mean far less furniture and STUFF to fill them with, and most importantly far lower house payments, and far less overall indebtedness.

I have a 1990 Lexus with 201,000. Unfortunately I also have a car payment on another vehicle. I would buy a replacement car with good incentives. I think my credit is still good enough... They need to start offering incentives like they did back in 2003...

Barry

I dont understand how that helps people. Used car prices move with new car prices. Now I guess some cars really get used and go to the dump, some are just passed on to a family member. But a vast majority need resold/traded. I just dont see used cars accumulating around the neighborhood when a new one shows up. If I were to trade any of my cars for an incentive, all of my cars have lost at least 1K value in the last 6 weeks. It's like when they think they made home appreciation, to take a 50% gain to pay up 50% more the next one.

Edited by AChartist, 28 December 2008 - 10:20 AM.

This is the one I just got. There's only around 100 left in the country of
5000 built. When I got it there were 300 left. They should be gone in 10-15 days.

I'll either survive this economy this year or it's just another part of the
bankruptcy settlement, it's just money.


http://www.foxnews.c...,472320,00.html

I dont understand how that helps people. Used car prices move with new car prices.

Now I guess some cars really get used and go to the dump, some
are just passed on to a family member. But a vast majority need resold/traded.
I just dont see used cars accumulating around the neighborhood when a new
one shows up.

If I were to trade any of my cars for an incentive, all of my cars have lost at
least 1K value in the last 6 weeks.

It's like when they think they made home appreciation, to take a 50% gain to
pay up 50% more the next one.

Cars need to be well maintained to make it to 200,000. Most cars crap out at around 100,000 - 125,000 due to maintenance neglect and it becomes to costly to fix.. Cars are a depreciating asset. You can buy new or used. It has been my experience to used cars are too expensive, because one needs to put $$$ into it to get it up to working. I'm okay with that, but will not pay more that $10,000 for a nice used vehicle. If they start falling in price, I will buy used....

Barry

I've rarely bought a used car, doesnt pay in total cost of ownership.
Lease deals are near zero percent interest rate, mileage means nothing,
sell, trade, or buy it before the lease ends.

To preserve a car for lifetime accumulation of trade equity, I wax them
excessively when new. If I slip in year 3 when its not a new car and I just dont
care about it that much, it makes a big difference that it was waxed when new
and it restores easily.

There is special wax Zaino you can look up on the internet. Worth a thousand or
two retail value is done consistently since new.

I use a clay bar before waxing, makes the paint so clean it feels like wet butter. All the
carbage, tree sap, everything is taken off.

Spray and clean the engine with simple green and garden hose annually.
The glass needs treated about each 6 months with rainx or equivalent to prevent
acid rain etching. Nice glass is all the difference to a cars aging.

My weakness is keeping the interior clean, me and vaccuum cleaners have incompatible
dna so eventually I have to pull out the seats and use a steam cleaner machine with
upholstery attachments, when we do the house carpets.

Run synthetic oils, replace parts myself a little proactively as they are aging but
before they are shot, shocks, battery, etc.
I did a scientific oil test, amsoil reduces the ppm wear metals 40-50%.

After dealers try the usual blue book wholesale offers I always walk out with full
edmunds retail value for my trades. Makes a big difference in the next car's payments
and accumulates through a lifetime.

It makes a huge difference if it's a typical car they have to take right to the auction,
or they really want it on their lot.

My wife talks about how the people in the office have a running joke of how long
they can go without changing the oil, i've been in all sorts of peoples cars. Would never never
buy one, I dont care if the dealers know how to clean them up.

I only bought one ever, low mileage wife's honda. It was fine except it had the typical acid rain etching
paint and glass, because they all do, except mine.

Cars need to be well maintained to make it to 200,000. Most cars crap out at around 100,000 - 125,000 due to maintenance neglect and it becomes to costly to fix.. Cars are a depreciating asset. You can buy new or used. It has been my experience to used cars are too expensive, because one needs to put $$$ into it to get it up to working. I'm okay with that, but will not pay more that $10,000 for a nice used vehicle. If they start falling in price, I will buy used....

Barry