This page has been archived and commenting is disabled.
US Auto Sales Reach Highest In 8 Years
US auto makers just printed an annualized 16.98 million sales - dramatically beating expectations for the 2nd month in a row and the highest since July 2006. As we warned earlier, the reason is clear (massive extension of credit to the lowest credit quality sector of the market). With the government also taking major fleet sales and sponsoring the subprime purchasers, what more do you expect? We can only imagine the mal-investment boom that this unsustainable burst will create in the next few months - and right as the Fed's taper comes to an end.
July 2006 highs? Indicative of economic strength and confidence going forward?
or did we just reach peak car sales per job?
Charts: bloomberg
»
- 7996 reads
- Printer-friendly version
- Send to friend
- advertisements -
It's too bad zero forced GM to close down their politically incorrect dealerships (ahem the money was flowing in the wrong coffers) before they bailed them out. They would have a lot more places to channel stuff. Ahhh... what am I sayig? It's too bad they were bailed out in the first place.
I think they were more concerned with quality, rather than quantity.
I just saw a brand new Cadillac with a royal blue, full landau roof. In this day and age, a landau roof. These cats just don't hear the music, know what I'm saying?
I'm going to hold out for the new Corinthian Pleather.
Bring back the fins.
The addiction to oil won't end without crisis.
I'm still hoping they bring back the Electra 225 (Deuce-and-a-Quarter, to some):
http://en.wikipedia.org/wiki/Buick_Electra
One of the smoothest rides on the road....ever.
Buy Hyundais!
(make our company stronger)
General Murders is back!
Shameless pitch but I must agree damn good cars. Our Santa Fe is closing in on 280K and we just replaced the transmission ( our child laughs that we are the only people she knows that would do such a thing). Cheapest car per mile to operate out of all we have ever own. People just look at the cost of the car but the cost of ownership is really what one should track.
I drive though a low income area every day and I'm shocked to see the number of Mercedes, BMWs, Lexuses and other high end cars on the road. Unless everyone is a drug dealer, I can't imagine how they afford them. We certainly cannot.
Miffed;-)
why do you ask "unless everyone is a drug dealer"? You know the answer.
More than likely, they are supplying people in your neighborhood.
Unlikely, we aren't their typical sales demographic, but I wouldn't be surprised if they were to McMansion Land 6 miles away.
We don't take to kindly to dopers. A visiting drunk smashed into my neighbors fence and tried to drive off. Then he got belligerent when he was detained. He was hog tied and a bloody mess when I got there. The sheriff was glad he was gifted to him in a nice package ready for jail.
Miffed;-)
Three years ago I paid $750 for a Hyundai Accent (tho I affectionately call it an "Accident"). Its my commuter car and grocery-getter. The only thing I've done to it is fix a wheel hub, and it got a brake job. It was a Katrina victim and came with a salvage brand, but who cares. It runs great, though going through the car wash causes it to have flashbacks I think.
We're the Millers reference I'm hoping. No ragrets with this rally!
Was Big Ern McCracken the owner?
If that were the case then they would have kept the profitable dealerships.
What the hell is a "job"??? They keep throwing that word around....
I love the fact that people are touting this as a "recovery" point.
A lot of this is cyclical, and a lot of this is propped up by sub-prime loans. No "beats" here. The economy is not improving just because some rich people bought some new cars.
I think out of my lot of friends, only *1* has bought a new car in the last year. And yes, he works in finance obv.
time is getting short.
I imagine a lot of people bought two cars in anticipation of one being recalled. Just to avoid having to get a rental...It's amerika, we roll like dat.
Punchline: 16.97 million sitting in empty strip-mall parking lots.
up here
you speak the truth
lots of new cars parked all over the place besides the dealers lot
Same old shit different fuckin' day......this is setting up nicely. Keep stackin yo shit.
at stop lights look around, I almost always see 1 US made suv or pickup, 1 german car and the rest japanese cars/suv. This is in Atlanta metro, does everyone else see the same
I see a much higher density of new pickups and SUVs, but every last one of them is tax write-off.
First of all my condolences for having to live in the ATL. Second, I feel that the Swedish people's cars are underrepresented in your post and dazzz raaayyyycisssss.
In a few years, when the DC US begins to break up, Georgia, especially the Atlanta area will be the LAST place any American not related to chained-immigrants will want to be.
I feel the Ethan Hawke film of a few years ago about the free day of violence was made for a place like Atlanta, Cincinnati, etc. where there's a reasonable amount of racial tension. But you're correct - too many cesspools in this country to list!
What is going to happen to the descendants of the chained-immigrants is almost going to be funny as tragic as it will be.
They, having drank (or is it drunk) the "victim" Kool-Aide, will, when the gov. jobs and checks dry up, come out of the ghettos demanding to take what they think is theirs. They will be sad to find out that descendants of non-chained-immigrants are pissed and shoot better.
Those that can will move to the Atlanta area, but that does not bode well for the descendants of non-chained immigrants that already live there.
here is the problem, American's are prodominately zombies, just getting by EBT month by month. Add in the drugs shipped in and accessible, police state on steriods; I have a hard time seeing where is gonna survive. Whatever culture was taken for granted 20 years ago is long gone. Now middle class white suburbia has drug/unemployment problems. Too many young people on SSRI/ADHT drugs gonna lose it when no refills.
lol, I do like atlanta, I have been in so much worse. Sometimes there are 2 european cars spotted, but without a doubt the us manufactures are so little. I drove GM/ford/jeeps for 25 years - why did I do that.
Just went down to the local Ford dealer, fogged up a mirror and he gave me keys to a new F-150, what a great country,
don't forget to check your mail for the rebate check...and then you can use it to buy GM stock. Because, as we've seen, every recall seems to push the stock price higher.
And don't forget to not renew the registration, they can find you easier if you do. and, cancel the insurance, you don't need it if you have nothing but debt.
At least you chose Ford which is by far the most palatable of the domestics if only due to the fact they weren't the bailout babies GM and Chrysler were. Alan Mulally was an amazing CEO.
He was indeed...one of the rare ones.
here comes the end of day push to 17k as the VIX gets monkeyhammered.
"The Manufacture of US Auto Sales Reach Highest In 8 Years."
Fixed it for you.
exactly...automaker 'sale' is transacted when unit is sold to dealer, new vehicle registrations are a better figure to gauge consumer buys.
extremely cyclical business the car business. No doubt she's going down down down again in the U.S..
people gotta live somewhere.
(with some reservations)
a van down by the river
http://www.youtube.com/watch?v=l0YjSIkfkbU (1:12)
Buying a new car is one thing - actually paying for it is a completely different story. Do you really think the economy is thriving if people are taking out 7-8 year loans for a fucking car? Me thinks not.
Hey the banks had to make up the interest lost from mortgage origination somewhere.
Ella Fitzgerald, "It's Only a Paper Moon"
http://www.youtube.com/watch?v=gapCK5_rMuY (2:45)
These are REPO car sales.
The car companies loan their inventory to retailers for a small fee called a loan payment that retailers will soon default on.
Banks do it. Now car companies do it too. Weeeeee!!!!!! Fun!!!!!!!! Weeeeeeeeeeeee!!!!!
Govmint is replacing all of the GM cars that were recalled so they are double counting the sales.
Bullshit. Every dealer I see has massive inventory and no customers. I did go to a local car dealer and they were going to sell me a $28k car for $21,500.
Dealers still have 2012 models on their lots in some places.
I was even given a chance to purchase a brand new VW GTI for $2k off sticker without even negotiating. Zero % for 60 months. That was the up front offer.
If you are buying non mainstream cars like a Scion FRS, you see them advertised for $3k off sticker everywhere. When it comes time to pay the bank for the cars the dealers borrowed to buy, you're going to see the greatest incentives in history.
When it comes time to pay the bank for the cars the dealers borrowed to buy, you're going to see the greatest incentives in history.
thats your only mistake: the government is lending all the money not the banks.
Relaxed credit standards, extended terms, higher LTV, higher lease resids, have all contributed to moving metal but routinely end poorly, in particular for those on the low end of the credit spectrum...and those subject to the financial cost of higher defaults.
Feels like the rush to move metal before the pd/lgd estimates get ratcheted up and the risk appetite is diminished.
and...automaker 'sale' occurs when delivered to dealer, which may occur as soon as it leaves the factory.
New vehicle registrations may be more insightful.
Right, they can track those that ran out of unemployment or got jobs by looking up their SS# and they still "can't" provide accurate data.
My buddy's kid works at a high-volume Toyota dealership. Says that sales are OK, but management is getting more aggressive each week, to make the numbers.
More and more customers are getting price-sensitive, which puts the squeeze on the sales guys, since the dealership always gets the lion's share of whatever profit is made -- however meager. In some cases (especially when dealing with Russians, Ukrainians and Vietnamese) they are sold at or below Dealer Invoice price. The Dealership still gets a few hundred in Holdbacks from Toyoya itself, but the sales guys get $50 for a 'mini'... after spending half a day with them. No wonder there it has such high turnover in staff: 20% of sales guys (the established ones, not necessarily the good or ethical ones) make 80% of the money, via games and brinksmanship with colleagues. Total shark pool of alliances. Hope the kid makes it, but I have my doubts, given his upbringing and the fact that the Muzzies at the Dealership are hunting in packs and eating his lunch.
Sub-prime care loans up 10 fold.
From $2B to $22B!
Fantastic.
Friend just bought a new Prius for under invoice. During the life of his loan, he will save $12,000 in gas over his old Explorer
https://autos.yahoo.com/photos/10-most-american-made-cars-1404166628-slideshow/
Explorers are horrible gas guzzlers. He could have bought almost anything and saved money on gas. I know people who used to have a prius. Got rid of them when the batteries needed to be replaced. They were worth less than the batteries cost. Total cost of ownership is what really matters. A prius is way too expensive for me. I drive a Corolla.
if money doesn't move the fed dies.
intrest free, 125% value, intitlements counted as income on home loans, that made a shitload of money to move, didn't end well for tax-payers, workers, elderly,(49.5%) of americans, but the tbtf's, and the fed made money.
it's going to be the same as 2008 housing bust, the people who could never afford a house got the most exspensive one a realtor could book, the same things are going on in car loans now, they'll walk away from their car the same as their house.
being an american tax-payer you'll pay for their car, just as we're still paying off their houses, and yes the fed., and tbtf's will make money.
the fed is just the same as a white shark, it has to keep moving, and eating or it will die.
The economic recovery that the media and talking heads have been bantering around does not exist and is just a myth. A manipulated stock market distorted by recent economic policy hides and mask the real truth, in many ways it is ground zero in the war to convince us all is well.
The American people and Main Street will tell you they are far from convinced that it is smooth sailing ahead. Huge weakness in the economy has been shown by numbers that barely get by even after record amounts of stimulus. Fact is if QE or the massive government deficit spending that props up our economy is removed it will fold like a cheap umbrella.
Recent changes in how the GDP is figured , which boosted growth thus reducing the debt to growth ratio, and attempts to spin poor numbers regarding employment have been met with skepticism. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/10/myth-of-economic-recovery.html