• Monetary Metals
    07/28/2014 - 02:38
    Notice the “icicles” dripping all over the place? They occur at different times of the day. What are they? Each one is a brief but dramatic price drop.

US Auto Sales Reach Highest In 8 Years

Tyler Durden's picture




 

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

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Tue, 07/01/2014 - 15:33 | 4914846 Dr. Engali
Dr. Engali's picture

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.

Tue, 07/01/2014 - 15:34 | 4914857 NotApplicable
NotApplicable's picture

I think they were more concerned with quality, rather than quantity.

Tue, 07/01/2014 - 15:36 | 4914863 ParkAveFlasher
ParkAveFlasher's picture

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?

Tue, 07/01/2014 - 15:37 | 4914869 NotApplicable
NotApplicable's picture

I'm going to hold out for the new Corinthian Pleather.

Tue, 07/01/2014 - 15:42 | 4914892 10mm
10mm's picture

Bring back the fins.

Tue, 07/01/2014 - 16:52 | 4915112 markmotive
markmotive's picture

The addiction to oil won't end without crisis.

 

Tue, 07/01/2014 - 18:07 | 4915385 Son of Loki
Son of Loki's picture

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.

Tue, 07/01/2014 - 15:43 | 4914896 DoChenRollingBearing
DoChenRollingBearing's picture

Buy Hyundais!

 

 

(make our company stronger)

Tue, 07/01/2014 - 15:48 | 4914919 max2205
max2205's picture

General Murders is back!

Tue, 07/01/2014 - 15:54 | 4914947 Miffed Microbio...
Miffed Microbiologist's picture

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;-)

Tue, 07/01/2014 - 16:41 | 4915085 corporatewhore
corporatewhore's picture

why do you ask "unless everyone is a drug dealer"?  You know the answer.

Tue, 07/01/2014 - 17:16 | 4915196 Luckhasit
Luckhasit's picture

More than likely, they are supplying people in your neighborhood.

 

Tue, 07/01/2014 - 18:57 | 4915548 Miffed Microbio...
Miffed Microbiologist's picture

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;-)

Tue, 07/01/2014 - 16:13 | 4915011 Intoxicologist
Intoxicologist's picture

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.

Tue, 07/01/2014 - 15:48 | 4914917 delivered
delivered's picture

We're the Millers reference I'm hoping. No ragrets with this rally!

Tue, 07/01/2014 - 16:52 | 4915118 Bangin7GramRocks
Bangin7GramRocks's picture

Was Big Ern McCracken the owner?

Tue, 07/01/2014 - 15:44 | 4914898 Dr. Engali
Dr. Engali's picture

If that were the case then they would have kept the profitable dealerships.

Tue, 07/01/2014 - 15:50 | 4914932 Stoploss
Stoploss's picture

What the hell is a "job"???  They keep throwing that word around....

Tue, 07/01/2014 - 15:33 | 4914847 Shizzmoney
Shizzmoney's picture

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.

Tue, 07/01/2014 - 20:10 | 4915850 I need Another Beer
I need Another Beer's picture

 

time is getting short.

Tue, 07/01/2014 - 15:33 | 4914848 alien-IQ
alien-IQ's picture

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.

Tue, 07/01/2014 - 15:33 | 4914849 NotApplicable
NotApplicable's picture

Punchline: 16.97 million sitting in empty strip-mall parking lots.

Tue, 07/01/2014 - 15:45 | 4914906 Da Yooper
Da Yooper's picture

up here

you speak the truth

 

lots of new cars parked all over the place besides the dealers lot

Tue, 07/01/2014 - 15:34 | 4914854 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Same old shit different fuckin' day......this is setting up nicely. Keep stackin yo shit.

Tue, 07/01/2014 - 15:34 | 4914855 uno
uno's picture

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

Tue, 07/01/2014 - 15:36 | 4914865 NotApplicable
NotApplicable's picture

I see a much higher density of new pickups and SUVs, but every last one of them is tax write-off.

Tue, 07/01/2014 - 15:41 | 4914882 J Pancreas
J Pancreas's picture

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.

Tue, 07/01/2014 - 15:46 | 4914910 kchrisc
kchrisc's picture

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.

Tue, 07/01/2014 - 16:00 | 4914971 J Pancreas
J Pancreas's picture

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!

Tue, 07/01/2014 - 19:13 | 4915630 kchrisc
kchrisc's picture

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.

Tue, 07/01/2014 - 16:16 | 4915028 uno
uno's picture

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.

Tue, 07/01/2014 - 15:54 | 4914941 uno
uno's picture

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.

Tue, 07/01/2014 - 15:39 | 4914873 Squid Viscous
Squid Viscous's picture

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,

Tue, 07/01/2014 - 15:41 | 4914883 alien-IQ
alien-IQ's picture

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.

Tue, 07/01/2014 - 16:14 | 4915015 optimator
optimator's picture

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.

Tue, 07/01/2014 - 15:43 | 4914897 J Pancreas
J Pancreas's picture

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.

Tue, 07/01/2014 - 15:59 | 4914966 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

He was indeed...one of the rare ones.

Tue, 07/01/2014 - 15:39 | 4914877 alien-IQ
alien-IQ's picture

here comes the end of day push to 17k as the VIX gets monkeyhammered.

Tue, 07/01/2014 - 15:41 | 4914885 kchrisc
kchrisc's picture

"The Manufacture of US Auto Sales Reach Highest In 8 Years."

Fixed it for you.

Tue, 07/01/2014 - 16:53 | 4915122 IANAE
IANAE's picture

exactly...automaker 'sale' is transacted when unit is sold to dealer, new vehicle registrations are a better figure to gauge consumer buys.

Tue, 07/01/2014 - 15:42 | 4914889 Jason T
Jason T's picture

extremely cyclical business the car business.  No doubt she's going down down down again in the U.S..

Tue, 07/01/2014 - 15:43 | 4914893 madcows
madcows's picture

people gotta live somewhere.

Tue, 07/01/2014 - 15:49 | 4914922 Goldilocks
Goldilocks's picture

(with some reservations)

a van down by the river
http://www.youtube.com/watch?v=l0YjSIkfkbU (1:12)

Tue, 07/01/2014 - 15:45 | 4914900 Ness.
Ness.'s picture

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.

Tue, 07/01/2014 - 15:57 | 4914959 adr
adr's picture

Hey the banks had to make up the interest lost from mortgage origination somewhere.

Tue, 07/01/2014 - 15:44 | 4914902 Goldilocks
Goldilocks's picture

Ella Fitzgerald, "It's Only a Paper Moon"
http://www.youtube.com/watch?v=gapCK5_rMuY (2:45)

Tue, 07/01/2014 - 15:49 | 4914925 orangegeek
orangegeek's picture

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!!!!!

Tue, 07/01/2014 - 15:55 | 4914950 insanelysane
insanelysane's picture

Govmint is replacing all of the GM cars that were recalled so they are double counting the sales.

Tue, 07/01/2014 - 15:56 | 4914955 adr
adr's picture

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. 

Tue, 07/01/2014 - 18:33 | 4915469 caShOnlY
caShOnlY's picture

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.

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