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Ready for an auto price collapse?

Discussion in 'Political Discussion' started by Run DMC, Jan 17, 2009.

  1. Run DMC

    Run DMC In the Starting Line-Up

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    #24 Jersey

  2. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    I drove by a couple of new auto stock-piles on my way to North Conway a couple of weeks ago. I was in JCPenney today and saw men's clothing at a 70% discount and bought a $50 jersey for $11.

    It's shocking. Some economist are saying it's a good way to get rid of excess inventory, but I just find it scary.
     
  3. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey

    sounds like a nice time to pick up a Lexus or 2 ... perhaps a Bentley for driving to McDonalds for the 99-cent burgers.
     
  4. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    I've been noticing the number of top-line luxury vehicles on the road lately. Especially Lexus'...man, there's a lot of them on the road. We just don't have that many people earning $150K+ incomes, so that shows just how many people spent their money for "image".

    What a waste.
     
  5. Gunnails

    Gunnails In the Starting Line-Up

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    ===========================================================

    I went McD's in Hillsboro on Thurs., big and tasty with Cheese, fries and a Coke was $6.

    I don't need a new car or jersey, but the stuff I do need is going up in price.

    Still, it's a great time to buy a new car or even a new house.
     
  6. Patsfanin Philly

    Patsfanin Philly Experienced Starter w/First Big Contract

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    #95 Jersey

    Same goes for houses in my area. (Philly/Trenton/Princeton) The builders didn't want to build entry-level ($200-250K) homes, just the McMansions at $700K plus. The size of the pie that could afford it wasn't that great BUT the realtors, bankers got people into those homes with balloon payments mortgages and ARMs whether they could afford it or not. We refer to them as mortgage-poor....big house, no furniture or landscaping. Good luck to them but when the economy soured, so did their financial ability to pay. Now the market dropped by about 20%. not bad compared to Las Vegas, Miami or California but stll.......
     
    Last edited: Jan 18, 2009
  7. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    You're right on the money regarding what SHOULD be the price range for a new entry level home. In my area (Plymouth/Bristol counties) of Massachusetts, they're still trying to sell a NEW entry level home for $300K and it aint flying to well. I see homes coming way down still regardless of whether the gov't bails out mortgage holders to prevent foreclosures.
     
  8. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    BTW...cars have inflated way too much over the past 20 years. If you look at Chrysler, they don't sell a sedan for anything lower than $18K (Sebring) and their next lowest price sedan is almost $30K (the 300). So that means they don't sell cars for middle income earners.
     
    Last edited: Jan 18, 2009
  9. PressCoverage

    PressCoverage Banned

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    yup, deals galore...

    my gawd... i can't win a 1000-seat poker tournament fast enough...
     
  10. scout

    scout Veteran Starter w/Big Long Term Deal

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    #15 Jersey

    If you have money its the best of times (being selfish/sorta). Plasma TV's from Circuit City or tunes from Tweeter Etc. In my neck of the woods, they are still knocking down houses and putting up monsters, but not on speck. You can buy a nice low mileage vehicle, pretty much whatever you choose. See more of those flat bed tow trucks with shiny cars being taken away. Of course, it is the absolute best time for risk reward on the stock market.
     
  11. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    Not sure I buy that. Assuming 3% inflation the 30K car would have been 17K 20 years ago, the 20K car would be 11K. I wasn't in the new car market 20 years ago so I don't know if 11K for a decent but not luxury sedan is legit but it sounds reasonable. Maybe salaries haven't increased at 3% or people aren't saving enough ahead so they have to get a loan for the whole amount; or maybe they're just buying too much car but I don't think the prices are outrageous.
     
  12. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    You may be right after seeing those numbers.
     
  13. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Regardless of whether prices are too high or not, check this out;

    "Auto Prices About To Crash

    With unsold cars stacking up by the day, demand falling faster, and bailout silliness getting sillier, I have three easy to make predictions.

    1) Hundreds of dealerships are headed for bankruptcy in 2009
    2) The Fed Is Destined To Become World's Largest Auto Dealership
    3) Cars are going to get cheaper, much cheaper. Auto prices will crash. Liquidation sales later this year after the 2010 models come out are going to be fabulous.

    It makes no sense to buy a car now, no matter how good the deal looks. The deals will get progressively better as the year rolls on."


    http://globaleconomicanalysis.blogspot.com/2009/01/unsold-car-images-from-around-world.html

    I think I'll wait to buy a new car even though my 2000 Chrysler Concorde with 162,000 miles is growing old
     
    Last edited: Jan 19, 2009
  14. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    I have a 2000 Dodge Intrepid - very similar to yours except I live in a small town so I have about half the miles you do. I have had few problems with mine and I'm in no rush to replace it. However, if prices just took a dump . . .
     
  15. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    I put a lot miles on it the first 3-4 years I owned it. Now that I work from home, I'm only putting on about 10k/year. It's saved me a lot of money, but I really don't like working from home much. I like the disciplined routine of having to go to an office.

    But I don't miss driving in traffic.
     
  16. Real World

    Real World Moderator Staff Member

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    I know a dude who got $11,000 off the sticker on an S550. Mercedez, according to him, NEVER bargains. One of my cousins just bought a Jeep Grand Cherokee over the weekend, at $10,000 off the sticker. Just some exampes of prices falling.
     
  17. Real World

    Real World Moderator Staff Member

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    I've got a 2004 Jeep Grand Cherokee Overland. I bought it a year old, with 18k miles on it. In the 4 years I've had it, I've only reached 42,000 miles total. It's paid for, it's AWD which I need for work (on call 24/7), and is under warranty till 2010. I really only have one reason to buy something new, and that would be fuel efficiency. I'm moving this summer, and my commute is going from 1 mile to work, to 10 miles to work (20 round trip). My guzzler won't be too friendly in the gas department. If prices truly do collapse, then maybe I'll look for something new.
     
  18. mgcolby

    mgcolby Woohoo, I'm a VIP!!! PatsFans.com Supporter

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    Being selfish, that is great, as I planned on buying a new truck or a slightly used new truck at the end of this year during the "year end blowout". I would have to get a hell of a deal to buy a brand new truck. Depreciation is just to much. We recently replaced my wifes 1999 Olds intrigue with a 2007 Jeep Commander, it originally sold for $33,000 - we bough it for 17,900 with only 10K miles on it. Seems foolish to buy brand new unless you can get 12 - 15 K off the sticker.

    I am no economist, hell I don't even have stocks or mutual funds, but a lot of this seems like the world went to a credit based system and the creditors finally ran out of money. Which left the average credit based consumer high and dry.
     
    Last edited: Jan 20, 2009
  19. Real World

    Real World Moderator Staff Member

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    When I was 12 years old, and mixing cement for my dad's tiny masonry business during summer break, the line that he, and my cousin used to always throw my way, was "cash is king". This was during the mid to late 80's. Anyhow, in the next couple of years, that line will have never been more true. Anyone with cash right now, is in a great position to purchase.
     

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