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Auto Sales Spike To 6.5 Year High; Beat By Most Since "Cash-For-Clunkers"

Tyler Durden's picture





 

Annualized auto sales spiked their most MoM in almost 3 years reaching their highest level since May 2007 and beating expectations by the most since cash-for-clunkers in 2009. Inventories are at record highs, GM channels are almost the most-stuffed on record, and incentives are surging once again... the "field of dreams" economy rolls on... what could possibly go wrong?

 

 

Mal-investment anyone?

 


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Tue, 12/03/2013 - 18:28 | Link to Comment Seasmoke
Seasmoke's picture

My friend has been selling cars for 20 years.....says he hasnt sold a new car in weeks !!!

Tue, 12/03/2013 - 18:29 | Link to Comment NotApplicable
NotApplicable's picture

Why every single car on that lot has already been sold, didn't ya hear?

Tue, 12/03/2013 - 18:38 | Link to Comment negative rates
negative rates's picture

But the average age of todays cars keeps going up.

Tue, 12/03/2013 - 18:46 | Link to Comment 666
666's picture

Are these stats showing sales to the dealers or the public?

Tue, 12/03/2013 - 18:30 | Link to Comment RmcAZ
RmcAZ's picture

MOAR 6 year loans at 0%

Tue, 12/03/2013 - 21:25 | Link to Comment Singelguy
Singelguy's picture

MOAR 6 year NINJA loans at 0%
Fixed it for ya!

Wait until the default and repo rate go through the roof! What will they do with all those repo"d cars? A cash for repo program?

Tue, 12/03/2013 - 18:41 | Link to Comment Canadian Dirtlump
Canadian Dirtlump's picture

Seasmoke, you key in on an extremely relevant point. Sales in this case are more likely defined as "deliveries" from the factory to dealers. So this seemingly strong sales number is made up of 2 things:

 

1) gross overproduction by manufacturers booking sales and profits by casting cars on dealer lots which are not wanted or needed.

2) Pulling forward future purchases with toxic garbage easy loans.

 

Where should this lead? To a shitting of the bed later as many bought already a temporary reduction in sales via trying to actually sell "delivered" cars. Just another case of a positive mirage being forwarded by the ministry of bovine scatology.

Tue, 12/03/2013 - 18:27 | Link to Comment Its Only Rock N Roll
Its Only Rock N Roll's picture

When Ally Financial (aka GMAC) can price a 3 year deal at 2.875% you know that things are fucked up beyond just mal-investment.

http://portal.ransquawk.com/headlines/ally-financial-sells-usd-1bln-3y-senior-notes-at-2-875-02-12-2013

 

Tue, 12/03/2013 - 18:27 | Link to Comment frankTHE COIN
frankTHE COIN's picture

I See green Shoots.

Tue, 12/03/2013 - 18:31 | Link to Comment ebworthen
ebworthen's picture

Since I have no job and dwindling savings after the sale of my house but good credit I've been thinking of getting a Denali and having a cross country road trip ending by crossing the border into Mexico and parking that hulk of GM shit with the keys in the ignition near some shady looking characters then walking back into San Diego and maxing out the credit card on expensive whores and coke. 

Be one hell of a time, eh?  I got the idea from the FED, the rest of .gov, and Wall Street.

Tue, 12/03/2013 - 18:35 | Link to Comment booboo
booboo's picture

Can I come too, I could be the DD and........whats that honey, nothing...... got to go. (switches screens to Excel)

Tue, 12/03/2013 - 21:40 | Link to Comment aVileRat
aVileRat's picture

If you do this, I promise it will be the biggest pop story since Hunter Thompson discovered uppers or Fonda read the ezee rider script.

Grab two greying baby boomer bankers. Convince them to one day to let go of the thread and walk off the bond floor during T-bill pricing. 1 week of driving through America while the bond market goes fail to cover for a month.

They can drive through Detroit, meet a burned out a Afganistan MBA who gives them acid trip flashbacks to their Kerry protest days. Drive through Nebraska where they meet farmers who threw their wheat away for ethanol subsidies and are 5x overleveraged on their 100 year old farms. Let them pit stop in Los Angles where children play near burned out buildings smeared with Hollywood posters for green ethical investing. Let them drive to New Mexico and meet a family of 7 who work 15 jobs to meet ends. Meet the middle age computer engineer now working a gas sation who lost the middle class life in the 2008 crash. Let them drive into Mexico and see a family of 4 paying with their daughters to a Zetas gang for passage to the 'promised land'.

End of the story ? They realize their whole generational struggle to 'fight the man' led them in a false promise. They were the generation that was to lead the world beyond the Cold War through American consumerism. That blind hubis drove the US, and OECD off the cliff. The whole thing, from Vietnam celeb. protests to hype movie careers to repackaged Time life CD's was all a scam built on consumer leverage of the greater fool. Their generation has no clothes, literally and metaphorically.

Fuck, what's Lloyd and Jamie doing next spring ?

 

Tue, 12/03/2013 - 23:38 | Link to Comment yrad
yrad's picture

Wow...

Tue, 12/03/2013 - 18:36 | Link to Comment TalkToLind
TalkToLind's picture

ZeroOnion.com

Tue, 12/03/2013 - 23:47 | Link to Comment yogy999
yogy999's picture

Awesome:-)

Tue, 12/03/2013 - 18:43 | Link to Comment nightshiftsucks
nightshiftsucks's picture

My mother who has terrible credit just bought a new car,1k down at 6% without a cosigner. Just unbelievably amazing. I also work in mfg with autos a big segment and we are slowing way down again.

Tue, 12/03/2013 - 18:54 | Link to Comment chump666
chump666's picture

now imagine what Yelland will do when the next credit crisis hits. 

Tue, 12/03/2013 - 23:11 | Link to Comment A Nanny Moose
A Nanny Moose's picture

NIRP bytchez!

Tue, 12/03/2013 - 18:52 | Link to Comment orangegeek
orangegeek's picture

Buy a car, get a 50" flat screen for free.

 

Walmart is still swimming in inventory from Black Friday fail.

 

What a fucking shit show.

Tue, 12/03/2013 - 18:51 | Link to Comment Rathmullan
Rathmullan's picture

Someone had better tell the city of detroit

Tue, 12/03/2013 - 18:54 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Must be all the raises everyone is receiving.

Tue, 12/03/2013 - 18:56 | Link to Comment TrulyStupid
TrulyStupid's picture

I won't buy until zero down, -1% interest over 60 months.

I want a bumper to bumper warranty and free gas as well.

Tue, 12/03/2013 - 19:02 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Sign up for Autobama.

Tue, 12/03/2013 - 19:09 | Link to Comment Sophist Economicus
Sophist Economicus's picture

LMAO!!!!!

Tue, 12/03/2013 - 19:01 | Link to Comment papaswamp
papaswamp's picture

Can't wait to see the credit report come out and how much uncle scam had to pony up in govt backed loans to keep this nightmare alive. At some point they have to realize the economy just isn't coming back until there is collapse and mass default to reset everything.

Tue, 12/03/2013 - 19:44 | Link to Comment jbvtme
jbvtme's picture

robots bitchez.  this economy is not coming back.  the only question is whether we end up compost or protein

Tue, 12/03/2013 - 19:19 | Link to Comment Teddy Tenpole
Teddy Tenpole's picture

 

 

What happened to your Chicken Little channel stuffing post?  ZH is incredibly informative but you really are turning into an incredible Doomer Douche there Tyler Durden.

 

 

Tue, 12/03/2013 - 19:35 | Link to Comment nightshiftsucks
nightshiftsucks's picture

How are you my little bitch Teddy Turdpole ?

Tue, 12/03/2013 - 23:42 | Link to Comment Teddy Tenpole
Teddy Tenpole's picture

 

 

Haha, your bitch?  Oh really now?  No doubt you'd be wiping away your girly little tears after gagging on my 8"s there Buckwheat.

LOL

 

I'm fine.  You?

Wed, 12/04/2013 - 05:09 | Link to Comment NidStyles
NidStyles's picture

You should really give that 8" back, they don't belong to you.

Tue, 12/03/2013 - 19:52 | Link to Comment tarsubil
tarsubil's picture

Inventory continues to grow. What is on the horizon is pretty obvious now with the fear of taper. Inventories are not going to go down without huge losses; until those losses are realized (ie the unemployed crackheads stop paying on their 6 year at 4% car loan) they will continue to grow.

Tue, 12/03/2013 - 19:23 | Link to Comment Dadburnitpa
Dadburnitpa's picture

Went by a dealership sign the other night while working in a shitty neighborHOOD.

"Buy new now!  Nothing down, no payments until May".  

They be gettin' a nice free ride for the winter. Dealer can have it back in the spring.

Crazy.

Tue, 12/03/2013 - 19:31 | Link to Comment Yen Cross
Yen Cross's picture

    Looks like the REPO business is in for a nice boost in revenue.

   There was a clip on our local news the other night and they were pumping subprime auto loans. I about caughed up a lung when they tried to explain what a great opportunity it was for people with bad credit. Right back to where we were 5 years ago +6 $ trillion in additional debt.

Tue, 12/03/2013 - 19:48 | Link to Comment ncdirtdigger
ncdirtdigger's picture

Are they selling tow trucks at 0 down, 0%? I could get into the repo bidniz with that kind of financing.

Wed, 12/04/2013 - 05:10 | Link to Comment NidStyles
NidStyles's picture

I already beat you to it. I have the truck and a trailer ready, and I own both. I am ready to start towing in repo's and making bank off the idiots..

Tue, 12/03/2013 - 19:47 | Link to Comment Clint Liquor
Clint Liquor's picture

New Dodge Truck promotion: 0% interest for 72 months. Step right up, be upside down on your truck loan for 6 years.

Tue, 12/03/2013 - 20:22 | Link to Comment Handful of Dust
Handful of Dust's picture

With no money down,  no interest for 5 years and never pay back...of course sales are brisk.

All the bad loans will be passed onto you w/ TARP III.

Tue, 12/03/2013 - 20:49 | Link to Comment starman
starman's picture

2007 GM domestic auto sales : 4.3million units
2013 GM domestic auto sales : 2.3 million unites

Bobby fucking Lutz claims sales are up 15% YOY

Tue, 12/03/2013 - 20:55 | Link to Comment Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Ask F shareholders.

 

Tue, 12/03/2013 - 21:16 | Link to Comment Kreditanstalt
Kreditanstalt's picture

Must be an increasingly small segment of the US population doing all this buying, because no one I know can afford the (full) price of today's new cars...

Tue, 12/03/2013 - 21:21 | Link to Comment Notarocketscientist
Notarocketscientist's picture

I present to you.... THE REAL STORY:

 

If you have bad credit in America, you will have lots of trouble buying a house, securing a credit card or even getting a job. But it apparently won’t stop you from one very expensive but common purchase: buying a car.

Subprime auto loans – given to people with credit scores of less than 680 – account for 27 percent of all loans for new vehicles in 2013, according to analyst Experian Automotive. That’s well above pre-recession levels. Financial firms have pushed strongly into auto loans of late, and are increasingly willing to fund subprime borrowers. This year, banks even sold $17.2 billion in auto loan-backed securities, which are bonds similar to the mortgage-backed securities that accelerated the housing bubble.

http://www.salon.com/2013/11/27/americas_next_big_rip_off_car_loans/

 

A year ago, with a credit ranking in the bottom eighth percentile, “I would’ve told her don’t even bother coming in,” said Helfman, who owns River Oaks Chrysler Dodge Jeep Ram, where sales rose about 20 percent this year. “But she had a good job, so I told her to bring a phone bill, a light bill, your last couple of paycheck stubs and bring me some down payment.

http://www.bloomberg.com/news/2013-11-08/good-job-is-good-enough-as-subp...

Tue, 12/03/2013 - 21:41 | Link to Comment Kreditanstalt
Kreditanstalt's picture

But subprime auto loans aren't even as high as they were in 2005.  http://qz.com/153354/americans-are-binging-less-on-houses-and-more-on-cars/

I think all this car buying is being done by that shrinking portion of the population with secure jobs and paychecks...people in resource industries, government, technical/middle management and unionized jobs, etc.

The kind of people who don't think twice before shopping at convenience stores or paying $3.00+ for a Starbucks latte...

Tue, 12/03/2013 - 21:40 | Link to Comment QE49er
QE49er's picture

I am from the National Retail Car Association & I have good people skills...It's never a better time to buy a new car...go into more debt please, the economy is depending on you, 0% Financing...WHAT THE HELL IS A MATTER WITH YOU PEOPLE?!

Tue, 12/03/2013 - 22:39 | Link to Comment brown_hornet
brown_hornet's picture

Mrs Hornet works for Toyota Financial. Says subprime for them is below 600. Usually need cosigners.

Tue, 12/03/2013 - 23:34 | Link to Comment The Continental
The Continental's picture

I just bought a GMC Acadia SLT-1. It's gorgeous, drives and handles like a dream and screams quality inside and out. I really wanted to run my 10 year old Yukon longer but with 200K miles the engine is starting to fail and I didn't want to start with expensive repairs. I got several thousand dollars in incentives and discounts 'cause I bought other cars at this dealer; but I added options that offset the incentives so the car set me back $44K including 6.5% sales tax. I paid cash on the barrel head. GM used to make junk - shoddy, unreliable. These new GMC models are really excellent. The Acadia was every bit as good as the comparable BMW in drive and handling and offered more room, storage and amenities. I love the dash board design - I can actually read it without my glasses! When I was driving the car home from the dealer, I was thinking to myself sadly, how GMC finally figured out how to make an excellent car but now most of Americans are jobless and broke and can't afford it. Sure, one can get a car loan and little down. But this is only feeding the underlying problem, the destruction of wealth in America through chronic indebtedness. Frankly, I was also thinking about the backroom discussions about bank bail-ins and negative interest rates and these made me more amenable to converting some cash into a new vehicle. As someone with serious cash in the bank, I feel like the next target of TPTB.

Wed, 12/04/2013 - 05:17 | Link to Comment NidStyles
NidStyles's picture

Really? Only 200K on the clock and you are starting to have issues? What a piece of garbage, and it's worse because you think that is good.

I'm still driving a truck with over 265K miles and it's never been stronger. This thing should last to 500K or more before I need a rebuild, that is how trucks are supposed to be.

 

Also if you learn how to take care of your own vehicle the repairs are not expensive. I see you are one of those gadgets morons, so there is no helping you. You think 200K is good, lmao! 

 

You are a target because you allow yourself to be, you are incapable of fixing anything you buy so you have to constantly live off their economy to make do. You are not self-sufficient so you will never be able to pull yourself out your situation fully. You have no one to blame for your position other than yourself. Once you understand that and decide to do something about it, you will become free.

Wed, 12/04/2013 - 12:19 | Link to Comment The Continental
The Continental's picture

I hang my head in shame at being such an impulse buyer and conspicuous consumer, keeping my last car running for a mere 10 years. Jeez, it's hardly broken in and here I am getting a new one. Indeed, people lile me are the downfall of America.

Wed, 12/04/2013 - 01:37 | Link to Comment damicol
damicol's picture

Wake up,, some people are making this into a business buying a new top of range every month, 5yr 10 yr  no interest loans  minimal deposit.

Those cars are sold straight on to dealers shipping them out of Mexico to Asia mostly China.

Pay the loan for a few months , claim its stolen, or simple default, Either way jobless itinerants  who can move to another State and get another car loan don't care.

 

 They also figured rightly that the loan companies do not care as they are all going back to the fed and are going to get settled by more  debt.

There are even websites in Asia where you can order them, usually guaranteed under 3000 miles on the clock and up to 40 % discount on new.. Including shipping. These cars don't come from GM inventories in either  the US or China.

Who cares,, the low payments risible deposits, and interst rates it will take a year or more  before anyone catches up by which time selling a $60 $70 k car for 25k  every month is still going to leave you with enoujgh to vanish.

Get your own gang into gear boys, its the Klondyke out there again

Wed, 12/04/2013 - 02:04 | Link to Comment Trucker Glock
Trucker Glock's picture

Subprime buying Impalas and banksters buying Mercedes. It's all good.

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