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Why The New Car Bubble's Days Are Numbered
Having recently detailed the automakers' worst nightmare - surging new car inventories - supply; amid rapidly declining growth around the world (EM and China) - demand;
Automakers just unleashed a massive production surge to keep the dream alive...
With inventories at record highs (having risen for 61 straight months)...
Which would be fine if sales were keeping up - but they are not...
It appears the bubble in new car sales is about to be crushed by yet another unintended consequence of The Fed's lower for longer experiment.
Edmunds.com estimates that around 28% of new vehicles this year will be leased - a near-record pace...
Which means...
13.4 million vehicles (leased over the past 3 years in The US) - compared with just 7 million in the three years to 2011 - are set to spark a massive surplus of high-quality used cars.
Great for consumers (if there are any left who have not leased a car in the last 3 years) but crushing for automakers' margins as luxury used-care prices are tumbling just as residuals have surged.
As The Wall Street Journal explains,
Consumers focused on the dollar amount of their monthly payment have taken advantage of low interest rates to sometimes buy more car than they might otherwise be able to afford.
But, aside from the actual cost of the vehicle, rates are only part of the equation determining monthly payments. The other is what auto makers and their financing arms think the residual value will be once a typical 36-month lease is up.
Those values surged after the financial crisis.
Now, a surfeit of off-lease vehicles is starting to depress prices, particularly for expensive vehicles.
Three-year old, used premium luxury-car prices are down by nearly 7% from a year ago, according to Edmunds.com data. Along with Fed interest-rate increases, that would make leases less of a bargain and used cars more attractive.
That new-car smell may soon involve more of a splurge.
And if you are relying on more easing from The PBOC... it has made absolutely no difference whatsoever in the past 10 years...
And all of this on top of the fact that the subprime auto loan market is set to collapse...
We're gonna need a biggerer bailout... or more chemical plant explosions...
To sum up...
- The only way automakers are making sales is by lowering credit standards to truly mind-numbing levels and increasing residuals to make the monthly nut affordable.... that cannot last.
- China's economic collapse has crushed forecasts for the automakers.
- Inventories of new cars are already at record highs.
- Inventories of luxury high-quality used cars is at record highs and prices are tumbling.
- And July saw a massive surge in producton.
- What comes next is simple... a production slump - just ask The Atlanta Fed.
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channels too stuffed, huh? pity....
Everything you need to know, right here . . .
https://research.stlouisfed.org/fred2/graph/?g=1A8n
many charts there give me a sense of impending doom
The big inventory overhang is no problem. The rusting and leaking tanks of volatile explosive chemicals at the auto storage are a big problem.
Look on the bright side:
Maybe automotive replacement parts will get cheaper!
Road Warrior in "Back to ThunderDome"...
Something is seriously wrong and going to break soon.
All of the dindus in my area drive new cars, but used EBT cards.
How the hell does that work?
<< Consumers focused on the dollar amount of their monthly payment have taken advantage of low interest rates to sometimes buy more car than they might otherwise be able to afford. >>
Well, of course, I’m going to buy the Biggest chartreuse Escalade I can! I got to fill that 4.872 sf subprime house garage with something.
' Yes I can! "
I haven't bought a new car is seven years. I'm a broke dead dick. But that's ok. At least I still have my health.
I stopped reading and started laughing at "high quality" cars. I went around to all the manufactors and showed them all the things wrong with new cars and they got mad at me said if you don't like the car why don't you go out and make your own, so i have .
yep, haven't bought a new car since 1991, last car I bought a year ago was a 1992 Toyota 4Runner, and daily driver 1998 Chevy Astro mini cargo van for 12 years and counting.
I clicked now I also have the doom. Velocity of m2 chart = cheers Benny, you really fucking helped everyone out.
Mirrors the APR for mortgages, but funny how revolving credit costs are as high as ever.
Don't carrry that poision shit.
Know the source. The Fed actually realses some real nuggets, just that no one bothers to read them.
Over producing is definitely an issue, but that is separate - yet further exacerbated by the issue mentioned here.
Historically, companies like BMW, Toyota / Lexus and Honda could lease vehicles for a few years on the cheap, then sell the used returns for a profit - relying on their comparably high resale value. As they suggest, this becomes tougher when in addition to BMW and Honda.. Infiniti, Cadillac, Mercedes, Buick, Acura, and a panoply of other plebean manufacturers do the same thing. In addition to pulling forward future sales due to low interest rates, many people leased due to favorable conditions.
So in addition to average car loan duration being historically high, dealer inventory being historically high - thanks to an unreasonable expectation of low interest rate new normal environment, we have set the stage for a flood of "leaseback" used vehicles to hit the market soon.
Sum total? if we've unreasonably pulled forward sales, and further greased the skids of over production / unsustainable sales with low interest rates, plus exacerbated the problem by overproducing - then the comparably few new car buyers have something to look forward to.
Just like I rent my house, I'll be satisfied with my paid off challenger srt8 and ram 1500 until things change. When the reaper comes I'll be happy to part with some of my silver for a property, and will part with some more for a new vehicle, maybe an srt jeep grand cherokee or a hellcat charger. The auto market is like everything else, an illusion. This should surprise no one. My goal is to upgrade my lifestyle, and gain weight in the collapse and I think I'm there.
I will wait for the "Halo" to dissipate over the next year on the GT350R in hopes of getting one at invoice. Patience,patience.
I want a new Tacoma more than I can think about one but everytime I go to buy a new truck the prices get more and more rediculous.
My first car was about $2000 and $73 a month. Now its almost impossible to find a new pick up for less than 40K and $600 a month for 7 years. WTF?
$600 a month plus $120 a month for insurance plus $700 for a new registration. HA!
Looks like I'll be driving my 2012 Tacoma into the ground then looking for a used horse and buggy.
In Boston, seems like every 20 something has a new BMW or a Ford F250.. Of course the yuppies who live in Back Bay & the South End all have several cars one of which is always a Prius with the $1,000 Thule bike rack
They "have" those cars and things, but they "own" none of them they have zero or negative net worth.
because mommy & daddy are paying along with the monthly rent so they can live in Cambridge, Watertown , Brookline or Newton... Many are just transient and are dependents for the purpose of taxes so they don't have to experience effective taxes in Massachusetts
The only people driving BMWs and Lexus' in my area are gubmint employees and Chinese and a handful of Indians/Pakis. Barry's relatives all drive brand new Escadales.
Why would you want to buy a new one if you're is only 3 years old? Hell, I never buy new...new is for suckers. I alway buy 2-3 years old with sub 20k miles on it and 30%+ discount over new.
My thoughts exactly. Anyone that can look at new cars while driving a 3 year old model certainly can afford the payment on a new one. Trade in on the 2012 Toyota should knock a big chunk of that down. BS post.
Ya that's pretty dumb. So, in the next 2-3 years, there will be a glut of high quality used cars? That's great, because that's about when I will probably need a new one. My 04 tahoe is still going strong, and I got that thing 4 years old too, i just might he ready for a "new" used one about then. Hopefully I'll be paying cash too, but people like the poster above that feel they must have a newest car are what makes good used cars affordable for those ofnusnhave don't care for shit like that.
Hopefully there are some large SUVs with a third row made by either Nissan or Toyota that I can pick up around 3-4 years old. Perfect. Lease away, retards. For now I'm just fine with my 10 year old truck that's been paid off for many years.
where exactly can you find a 3 year old (i assume Tacoma or the F250 which all 'real men' need to have for some type of ego boost?) for a 30% discount? and with "sub 20K miles on it)?
Also, most cars are still only made to last to around 100,000 miles when you get past 80,000 you find all those 'problems' that quicly add up - ex. suspension parts, hub bearings, brakes, tires. Any "sensor" can cost $500 + with parts, labor + sales tax.
"Also, most cars are still only made to last to around 100,000 miles when you get past 80,000 you find all those 'problems' that quicly add up - ex. suspension parts, hub bearings, brakes, tires. Any "sensor" can cost $500 + with parts, labor + sales tax."
Yep.
"Oh I have a $500 repair - time to spend $20,000 on a new car!!"
Open up a spreadsheet and figure it out - I'm going to bet in certain cases, repairs make good financial sense.
No brainier especially when do the repairs and maintenance yourself
Perhaps I'm an outlier, but my daily driver for work is a 2011 ram 1500 sport 4x4 hemi. I have 265000 kms on the clock ( 165,000 miles ) and have done nothing outside of routine maintenance to it..
Trucks are reliable especially when not used as a truck. As daily driver the robustness of design equates to longevity. I have 258k on my 99 Silverado and good friend has 662k on his 99 7.3. and that used in his business.
I have never brought new, and the current car was brought 4 years old with 30k miles on the clock, it is now at 12 years old with 112k miles on the clock with just some suspension and steering work done.
In in total, apart from tires and other consumeables the repairs have cost less than 300 pounds a year in total, in that way I have been a bit lucky, but on average a used car is still much cheaper then buying new when depreciation of 2000+ a year is the normal, and that's before we even consider a luxury car that costs 60k or so.
Go to Logan, Take Southwest to Hobby, check out dem BIIIG dealahs, gitcher some OK barbecue, place your order.
Oil patch goin' tits up again, lots of "stock" comin' back. Your deposit of "earnest money" will overcome your (our) lack of accent compatibility. 'bout a K to ship.
"You not from around heah, ah u boy?"
- Ned
"You're a long way from Yankeeland, aintcha boy?"
Cop to me when I stopped at a roadblock in rural Georgia in 1975. With my Mass. Driver's License. I did not feel the love... He let me go on my way though. Guessed he liked the fact that I was driving to Texas.
High school buddy joins the army out of high school and is stantioned at Ft. Benning. His car has NY plates, and he's driving through backwater towns. He pulls up to a full serve station. Guy inside looks, sees the NY plates, and makes no effort to come out and pump the gas. Friend honks, still nothing. Not until my friend gets out of his car and the guy inside sees he's military does he come outside to pump. Would've probably sat inside until the yankee drove away.
I wojld love to know what brands you are talking about. I thought modern cars were good for 200,000 miles. My Toyota has over 300,000. It started getting expensive to maintain at 250,000. Have an Audi on order now.
They (Audis) were good deal when maintenance included some years ago. Now hear horror stories on routine maintenance costs via dealer. If you have money to burn cool, enjoy.
My 2002 silverado just turn 200,000. I did have to replace the driver side wheel hub but did that myself as this truck is easy to work on.
Love the thing.
Cars & light trucks are very different beasts. If you bought a work truck and it has issues at only 100k miles, you either bought a lemon or some bitch's car (who didn't know how to do basic maintenance). Reasonably maintained trucks should hit 250k no problem, properly maintained 500k, and very well maintained 1,000k.
Pretty much.
Depends on what you have access to and how much you know. To most people buying a vehicle is among the worst / most embarrassing experiences of their lives - hence they do it by themselves and the price is secondary to getting it over with.
With my work I have access to fleet pricing which equates to a massive discount with no negotiating. Not only have I reduced the capital cost for vehicles for my company, but I've helped probably a dozen people get pricing on new vehicles they could otherwise only dream of. Example would be buying my truck with an msrp of 47,500, for 35,000. Used trucks were going for more when I bought.
That being said your point is still well made. Outside of fleet deals, buying leasebacks or relatively fresh used vehicles will save you thousands. As a matter of fact, if you know what you are looking for, if you have a friend with a dealer's license, or can find someone on a forum with a dealer's license, you can save even more by buying in a wholesale dealer auction. It is more of a crapshoot, but the price will be as much s 20% less than a comparable used vehicle on a dealer's lot.
Agreed. The math went like this for me: Full size Chevy pickup used with about 43,000 miles on it. Paid $7,000, got from private seller. Have since put 200K more miles on it. That's $3,500 per 100K miles (plus typical maintenance, of course). If you're not doing it like this, you're paying more than you have to.
A Tacoma for $40K? WTF?
When I bought my Tacoma back in 2004 it was only $22K for a double cab. Are they made out of silver these days?
In North America the demand for small pickups is pretty low - given the incentives on full sized pickups. A double cab v6 well optioned could easily run 40k here.
That other rare metal, unobtainium.
Pickups were destroyed by the marketing departments. They really did a number on them. Little additional useful utility, but much higher prices.
Jeebus! My 98 Tacoma has 210 K miles and runs great. The a/c quit working but who cares? I bought it for a work truck. Change the oil twice a year with good synthetic and use only Toyota factory oil filters. Fluid Film the frame and underside if you drive on salted roads. Thats it. I hope to be driving mine in 2018 so I can get historic tags and save even more money.
I love Fluid Film!..(we call it 'Phlegm Film' in the shop) dynamite anti corrosive...I'm at the bottom of my last can...need to find it again...
'SP3' is absolutely the best snake oil out there as well if you can find it...its a USA made product...I bought a few cases of that shit back in the 90's from the maker in TN I remember....everything I've used that on is running to this day...I need to see if its still available...
Fully agree on fluid film,keep lots on hand, spray and brush on. Another excellent product is Royal Purple MaxFilm. Krown makes great products too.
I agree, truck prices are INSANE, last new truck I bought was a '91 Nissan pickup as it was the cheapest thing I could get back then, around $7000 with a trade in and had it paid off in 4 months.
Automakers are going to have to pay off some politicians for another 'Cash for Clunkers' scheme...
If interest rates hit negative,will then dealers pay you to drive?
Just think. With access to high powered computers, with PhDs with degrees in finance and statistics.The respective managements can't see this coming? They might be locked in because of the unions. Or maybe they are just as corrupt as the politicians in Washington. Or maybe and more likely, it's both.
42:
Might recall that it was only Ford in '07 and '08 that slurped in all of their lines of credit, started slashing dealers, supply chain, production, they basically hunkered down.
Gov't Motors knew they had Ginzberg in their pockets, dey weren't 'fraid o' no Ghost.
That is correct, they can't see this and if they could they can't grok it and if they could, well, no skin off of their noses to get it wrong.
Takes balls to make that call and the caterwauling after the fact will kill any chance at the good country clubs.
- Ned
GM was forced into Bankruptcy. The Stockholders lost their shirts, Top managers were fired,
Pensions, benefits and salaries were cut. It wasn't painless for anyone.
Looks like automakers have boxed themselves in a corner ... at lease they did it to themselves...
But listening to Elon Musk, isn't everyone going to be driving a $50k or $100k Tesla in a couple of years?
Supposedly there is a sub $40,000 option coming with potentially 250 mile range. If that is true, then ya, everyone will be driving a Tesla. I know I would.
The most expensive car I've bought in the past 10 years was $16K for a used 1 year-old Camry SE with 21K miles. In my old age I found a bit of wisdom. Cars depreciate very quickly.
To be fair, Tesla is looking for a Medium priced Model III that will target at 35-40K, which is pricy but given
access to the supercharger network and the much lower price of electric charging, that car will sell. It's real threat is the Chevy Bolt a 25K All electric car.
Enjoy you electric car in two feet of snow and sub freezing temps. What's the range then?
the electric car is not an option in NJ, where our electric rates are about 20cents/kw, so "filling up" is not cheap.
Can someone please tell me what the fucking difference between a new '16 Ford Explorer and a Range Rover Evoque is?
The Range Rover Evoque is for urbane yuppies to use for 'weekend trips'.. I am sure it even comes with a $1,000 Thule bike rack to drive around with a $3,000 Trek Bike on top of the car. Otherwise, no difference .. The Range Rover is like buying a pair of $300 True Religion jeans -- just for the label for a certain social class of people
"urbane yuppies" ;-)
The Fucking Difference? lmao....Buy either one, and you're going to get a fucking - no difference.
You can buy parts for the Ford in bumfuck U.S.A. Not so much for the Range Rover.
lol Tata Motors,
evoque is a small fwd based vehicle with a 4 cyl turbo engine as a top end option.
the discovery sport is bigger but tops out with a 4 cyl turbo with a 9 speed.
The explorer is a fwd based crossover but priced way lower than any rover. the Explorer sport features a TT v6 which would smoke a comparable rover.
The Evoque is better looking
.
I own all my cars, intend to drive them until the wheels fall off.
Sorry to burst your bubble but you don't own any of your cars.
The government owns your car as soon as you put a license plate and register your car with them.
They just give you permission to drive their car, the one you gave them.
It's like your mortgage free house. Stop paying your property taxes and you'll soon find out who truly owns your mortgage free house.
.... and we don't live in a democracy .... it's a republic .... yadayada .... you didn't burst any bubble .... it's just an expression, word weasel ?
I don't know where you live but I have several vehicles tagged/registered and not. Still own all of them, if don't tag/register just can't drive but still own. My way of diversifying. House analogy bad as true that if don't pay property taxes will seize and auction. Apology if your state taxes your vehicles same house.
Fleet vehicles rely on travel. Purchasing government vehicles is based on Kenyan budgets. Have a look at past history and pinpoint employment, GDP, and government stimulus programs.
http://www.statista.com/statistics/199974/us-car-sales-since-1951/
Fuck off Statis pencil whipping Enron dumbfucks. We can read into your lies thru arithmetic.
What next crisis are you planning to play out?
THE INTERNET HAS REJECTED YOUR COMMENT
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Atomic W,
Fucking hilarious, always nice to get my humor at ZH.
Paid vacation for GM employees!
Vacation' Permenete
Okay question for you guys - the lease on my Nissan Pathfinder is up in March 16'. It's my company ride so I got to haul clients and staff around.
I leased since after my divorce my credit was whipped out. It's all mostly good and everything's paid off. My biz is China centric so I'm aware there's a shit tornado heading our way - short of complete meltdown I presume I'll still be employed next March.
I like new toys but of course I'm throwing money away on the lease.
Maybe buy a used Lexus? German cars are too finicky.
Pay cash for a 3 year old off-lease vehicle, for whatever ride you prefer and budget allows. Talk'em down 10% becuase there's a lot of inventory on the market now. Especially leased vehicles like your Pathfinder.
Acura seems to be more for the $.
I'm assuming you're serious.
If so:
Craigslist, Honda, Toyota, Subaru (in that order).
500 mile radius, minimum.
Compare the offers over a month or more.
Negotiate.
You will never buy a new car again.
I have personally done so 3 times, will continue to do so.
German cars are a moneypit. Mine BMW fell apart after the warranty expired. Get a used Lexus or Acura.
If you want German car, you have to buy it from Germany. There are BMW factories in United States and I will take a wild guess that there are some UAW involved there as well.
Hundia
I'm still driving the car I bought cash when I was 19. Its a 95' and not filled with computer chips and gps trackers.
Datsun? If not, good for you.
I have a idea, stop building shit cars that noone will buy. Send in the Pope to become a political figure head. He will be told to go home and practice christianity thru the bible and stay the fuck out of politics.
Guess this new Pope is unaware of the separation of Religion and Government.
Red cardinals need to Excommunicate this fuck off. If you don't, will inquiry to the Black Pope. Fake Christian's don't know about this alternative in firing up the white/black stove smoke signals.
what
My new car is a 3-year-old Toyota Rav4 on the dealer's certified used program.
Can't tell it from new.
Why not new?
Because I could afford to pay cash, and thereby fucked the banks in the ass with a 2x4.
Ta dah.
Bow.
A smart man you are. Even at ZIRP you're just leasing a commodity.
90 Accord. 240K. It's been through two young men as their first driving car and a wife that can't seem to miss objects that are mounted in cement.
Ugly as shit, but it goes, it stops, A/C works, and a killer stereo. Nobody would want to steal it either.
I don't need a car to show off, just this bee-utifull face and overwhelming charm.
Seriously though..... I am around sub35K folks all the time. How in the #*@% do they afford those fine-ass cars?
48 Ford F-3, still runs, don't know the mileage because the odometer went out in the 60's. I guess after hitting 99,999 it wasn't geared to roll back to 0. Still runs, just need to pour a couple quarts of oil into it every thirty miles. It's spent it's entire life in the desert, so the 'paint' is more of a ghost than anything else, the wood bed is dry-rotted and pieces tend to fall off, and it's a smoker (hence the oil). Dad bought it from some mexican in the 60's, about ten years ago or so he gave it to me, I just gave it to my oldest son.
After the EMP detonation it will be the only thing running.
Replace the pistons, hone out. Look at crankshaft. Upgrade. Can't help you with transmission. I love lightning up the tires.
We use to do burn outs in the school zone. We are old refined perps today.
Use the tongues from old leather shoes for main bearings. You should be good for 5 more years. Repeat as needed.
Stay away from mega dealerships. Reach out to people around you. My last BMW came out of Argentina. Had to re-acquaint myself with the metric system.
Socialist car dealerships are a fucking joke. Find a friend to locate the best car of your deams. Cut out the government subsidized bullshit.
"Socialist car dealerships"?
Filter, man, filter...
Ronald McDonald is a capitalist stooge!
I'm gong to start a company called "ChemicalStorageGoBoom," that will, for a price, setup branches exclusively near car lots.
"Got excess inventory? Boom! Gone. Call us today. An Andreas Strassmeir company."
Zion is a scheme, not an ethnicity.
Scion is a car, not an ethnic city !
It will be cheaper to startup a towing company to transfer the bloated Obama car inventory to a local salvage depot. Crushing new 2015 cars for Agenda 21 renewable energy protocol. Our environment is in danger in not remonetizing debt.
/hahaha. We need a new Obama selfie at the junk yard. Crushing cars.
We need cheap cars .... to go with the cheap gas .... whip inflation now ! Zion is a national park, not an ethnickity ?
Late model used with low mileage is the way to go. You save a shitton of money, which is badass!
Im living in Toronto and just leased new Mercedes C-class for 470 $. The sticker price $ 42000 and I got $9000 discount on this car. ( demo model) , so dealerships really under pressure now .
Loan term?
Fuck any car built after '06. Trackers and hacks and who knows what they'll be able to do next.
I'll take a set of carburetors and elbow room for wrenching before dealing with modern BS, circle-feeding California-emission, mechanical loopery headache disposable lighter cars.
Older cars are better. They are.
2006 or 1906?
You know there's a problem when at the company I do some consulting work have part time employees with brand new cars.
Korean (KIA) are dumping car in America, and Dealers are trying to hide the inventories where ever they can find place to park
even at end of runways in airports or between the valleys of mountains...could post a picture if allowed
Use links - would like to see The pics
Wonder if Tyler has done some research on the corelation between UBER/LYFT driver purchasing new expensive car and contribute to the "Car Bubble" loan scam.
And perhaps some first-class research (that's you, Tyler) on whether Uber, Zip-Cars, and similar new formats are reducing the demand for private vehicle ownership? For those in urban or semi-urban areas with some public transportation but increasing government vehicle excise taxes, I suspect many are saying it isn't worth owning late model cars any more and are simply going without owning vehicles altogether.
State and local governments are working hard to come up with additional vehicle taxes: pay by the mile, additional road tolls, and the like. I suspect for many that these further militate against private vehicle ownershp.
A chicken in every pot and five cars in every garage.
Obama is a Chicken on pot. Who lies alot.
If you have a buddy in the car business, you cant get a fleet truck quite cheap. I got a Ranger loaded for 1/2 the new price. It has all the maintenance papers with it. All I did was put on some new tyres.
I have been going backwards for past 10 years. Had 2 Mercedes AMG coupes in late 90's .the Audii A6 TDI and now driving a Citraoen AX 1.1 liter. Low mileage no rust, no computers, gets 45 MPG. and insurance is 14 Euros a monht. Paid 300 Euros for it.
Only put 3000 km on it last year. Rest of time when wheter is nice I use electric scooter. Which you can drive right to front of store and no parking fees and costs 10 eurocents to charge. (50km) range
also has trailer hitch on it , like most cars here and when we need to haul something big, you can rent a trailer for half a day for 15 Euros.
Some of the stores like Lowes and DIY stores let you use their trailer if the purchase is 50 euros or more.
Meanwhile in the USSA we do not appreciate clown cars and scooters.
Welll here, we have nice paved paths that parallel all highways and its a pleasure to bike around.
Clown cars in my mind ,are those big UGLY SUV's.
22W,
Thanks for the gut laugh!
How did you like that TDI in your A6? My A6 needs to be replaced as it has over 200K on her, and the TDI caught my eye. No supercharger, however, and that's no fun at all.
I had 1997 A6 TDI station wagon (caled Combi in Europe). Fully loaded, leather , 10 speaker Bose, board computer. heated seats etc .. 6 speed 2.4 liter.
Easily got 35-40 MPG cruising at 100 MPH , (legal in Germany where I lived at the time). tremendous torgue could go up pretty good inclines without down shifting.
Had 260k km on it when I sold it. Looked like new inside and out.
One thing about them or any other new car. Change the timing belt when they tell you to. I know a guy who waited 15k over the time of 120k and it broke and trashed the whole engine.. Cost him 5k for new engine.
I never heard of Audi Turbo diesel with supercharger. Mine was fast enough. 145 MPH top speed and 0-60 about 9 seconds. The 6 speed was great on autobahn cruising.
Good to know.
I've been thinkig about just replacing the engine in the thing if it goes critical (you can get low milegae used ones from car-part.com - which is an awesome resource - for about 3K) and just wait out the bubble, feast on the corpse, and grab an A8 later.
0-60 in 9, how did you control it!
Craigslist changed the whole dynamic regarding cars...back before, a guy bought one from a co-worker, friend, family, church member, used dealer, or for sale ads in the local rag etc...back in the early 80's a guy could get a $500 rig that would run for a few years, sometimes more...I had a limit of $300 and put many miles on those junkers before the wheels actually did come off...not now though, seems $2k is about the bottom for a 15yr old set of wheels that is mechanically sound but ugly...
I drive a 01 Prism, paid 2k a few years ago... completely invisible, nobody would ever steal it or break into it even...30+mpg, mechanically solid, (toyota) everything works, remote start even...I have drivin the piss out of it with minor maintenance..long hauls too..would not be afraid to cross the Country in it...put 60 miles on it this morning in fact just dinking around...
One good thing about driving and buying 'cast offs'...a guy get really good at voidereing vehicles (and their sellers) quickly. A guy gets good on the phone to detect bullshitters so you can weed them out fast and not make the effort to go look at the car...A guy gets really good at maintenance and easy fixes, brakes and rotors are a super easy thing to do yourself, as are starters, oil changes, all that...for at least half of what you will be charged...
a guy gets good at listening and paying attention to any strange noises, watching for road hazards, all the simple things..its nearly become a sport, to see how many miles a guy can wring out of somebody elses wreck with a minimal investment...you want to get one with new tires, dont be afraid of high mileage or older rigs either, the seller is almost as important as the rig, very important that they are not bullshitters..
I just did the brakes and rotors on a 98 Z3 2.8 inline 6...bought it off CL with 57k miles from an old guy, who is a car nut and is also sitting on a restored model T......Will be replacing the rag top next week and saving myself $1200 easy...Yes, a guy can actually save himself at least 100 grand in one lifetime if he gets good at buying and fixing cars...
Youtube is your friend when it comes to repairs...google is your friend when it comes to looking up reviews on a specific rig and what to expect or avoid..developing a good bullshit detector is a good thing to do that crosses all spectrums of Life, and buying cast off cars is a good way to hone it...
You can also help fix your friends cars.
It's a price war.
Tyler , how can add a picture of over inventories to your article, seems people will be shocked to see the inventories being dumped and stored in huge airport lots and "Publically funded" educational institutions
Tyler , how can add a picture of over inventories to your article, seems people will be shocked to see the inventories being dumped and stored in huge airport lots and "Publically funded" educational institutions