US Auto Sales Plunge To 6-Month Lows - Biggest Miss Since Nov 2008

Tyler Durden's picture

Despite the blustering propaganda from CNBC's Phil LeBeau, it appears the Auto-sales (and massive inventory build) party is over in America. December US domestic auto sales SAAR printed 13.46 mm - the lowest in 6 months (missing expectations of 14.15mm by the most since November 2008). With non-revolving credit growth slowing in December, and inventories at record highs, the wheels just fell off the credit-fueled auto 'recovery'.

Car sales just tumbled:

 

This is the worst second-half of a year since 2008...

 

Which should not be a big surprise since we just suffered the lowest level of "plans to buy an auto" since January 2013:

 

Of course - if sales are collapsing then this is a major problem

 

 

Good luck American subprime car buyers: your time may be almost over.

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Automatic Choke's picture

Tesla will save us, for sure.

kliguy38's picture

Phil la Blow is just suckin' the corporate shlong..........doin' his job for his masters

Jafes's picture

Despite financial constrains, people don't stop fulfilling their dreams. Do you know how easily the British people can get Japanese import cars for sale in the local market? Well, all they need to do is to navigate through alljapanesemotors.co.uk to have a look at the wide array of luxury cars and SUVs, and choose the best one, as desired.

Jtrillian's picture

This can probably be tied to two things.  1) Auto loan bubble (esp. high risk loans) and 2) Rising interest rates.  A rise in interest rates combined with recent defaults puts pressure on credit markets.  Since the auto sales was largely driven by the same type of bad loans that inflated the housing bubble, this one is showing signs that it too is about to pop. 

But that's ok.  Take this cookie.  As soon as you close this tab you'll feel right as rain.  You remind yourself you don't believe any of this Zero Hedge crap and the only way to invest is to BTFD. 

undertow1141's picture

I even heard her fucking voice, dammit.

Soul Glow's picture

The Fed says the will raise rates yet they cannot.  China spends $20b in a single day to make their equity tread water.  And Obama IS coming for your guns.

The economy isn't doing well?

I am Jack's lack of surprise.

undertow1141's picture

TPTB are trying gun grabs right as the economy is about to come off the tracks? No! Who'd a thunk it. Hey gimme your pistol, now lets talk about your money.

Rainman's picture

Zero down, Zero percent 120 month NINJA financing and it's FIXED !

wmbz's picture

Yep, just throw in popcorn, hot dogs and a "free" big screen and they will line up around the block for the deal!

yrad's picture

98 Chevy Pickup -- Paid 4

Louie the Dog's picture

2015 Toyota

-- Paid 4. ;-)

roadhazard's picture

95 Chevy Pickup 4x4, paid. Going in for new paint job because that's how good the engine and drive train continues to be. 187K, Rock on

cheech_wizard's picture

2000 BMW - paid for in 2000, custom order, cranked the check on the spot, drove it off the showroom floor.

248,500K miles and still gets 32mpg highway and still going strong.

Standard Disclaimer: dotcom money

 

 

matinee55's picture

WHAT!!!!!!!!!!!  I am totally confused.  This is totally opposite to other rags headlines

 

http://www.marketwatch.com/story/us-car-sales-poised-for-best-year-ever-...

Jtrillian's picture

That other site is a rag...

Ace in the hole's picture

There are different ways of reporting car sales.  Some use actual sales (makes sense) and some count the sales plus the  cars that get "stuffed" onto dealer lots.  They are not sold, but the dealer has "bought" them.  I think there are a lot of cars parked on lots all over the place.  Don't forget, leasing is a huge part of the program now, so all those cars are coming back right about the time the economy is going to be really hurting.

Ace in the hole's picture

There are different ways of reporting car sales.  Some use actual sales (makes sense) and some count the sales plus the  cars that get "stuffed" onto dealer lots.  They are not sold, but the dealer has "bought" them.  I think there are a lot of cars parked on lots all over the place.  Don't forget, leasing is a huge part of the program now, so all those cars are coming back right about the time the economy is going to be really hurting.

Ace in the hole's picture

There are different ways of reporting car sales.  Some use actual sales (makes sense) and some count the sales plus the  cars that get "stuffed" onto dealer lots.  They are not sold, but the dealer has "bought" them.  I think there are a lot of cars parked on lots all over the place.  Don't forget, leasing is a huge part of the program now, so all those cars are coming back right about the time the economy is going to be really hurting.

Bay Area Guy's picture

It was the weather on the East Coast.  It was just too warm to go out and buy cars.  January will be bad because of the floods along the Mississippi.  February will be bad because of El Nino in California and the Super Bowl.  March will be bad because it's now too cold on the East Coast.  April will be bad because of tornadoes.  May will be bad because the weather got decent again.  June, July and August will be bad because the kids are all on vacation.  September will be bad because the kids are back in school.  October will be bad because of hurricanes.  November will be bad because of the election.

Which brings us back to December.

Richard Head's picture

Weather, obviously. Also retired 20-24 year olds don't need new cars.

Pheonyte's picture

I saw a headline just the other day about how the unseasonably warm weather is hurting business.

sun tzu's picture

See BS news was running with that bullshit all week before xmas about how people weren't shopping because of the warm weather. It didn't feel like xmas. LOL

two hoots's picture

The subprimers got the cars now we will soon get the bill.

Yen Cross's picture

  It was clearly too warm on the East Coast in December, so people chose to stay indoors and avoid any discretionary spending. The abnormally warm weather was the cause of sluggish holiday sales as well.

 Thank You,

 The Bureau of Lies And Statistics

theeseer's picture

Bloomberg and CNBC are going to throw a nude party on air next to distract the masses from the slicing and dicing of their 401k retirement plan stocks. The next leg down happens when the "buy the dippers" get their nuts cutoff and the others that think a feeble rally of one day this week means the good days are back. At least Obama was in tears today thinking about all the kids he made homeless by his feckless foreign policy. It couldn't have been about gun control because he was in favor of stopping "stop and frisk" in NYC and Chicago the one program that took guns from gang guys.

When is someone going to ask him why he won't target gangs for illegal guns? Oh sorry they are mostly Black and Latino, off limits.

Squid Viscous's picture

why can't they go NIRP on auto loans? help a brotha out?

Chris P's picture

CNBC will let you know when to worry and when to buy buy buy 

eeaton's picture

Belmont Race Track just outside NYC has acres of outlying parking lots full of new cars, all makes, must be thousands and there since late summer.

youngman's picture

Alls I heard was how great Christmas was going to be for car buyers......from Phil baby....now this....they keep saying the stock is 12 years old...it cant be with all the new cars sold in the last couple of years...but they keep using that number....I know down here in Colombia car sales have slowed fast....with the weak Peso and economy its stopped...

THE DORK OF CORK's picture

Nothing like the 2008  / 09 event 

THE DORK OF CORK's picture

The Bits are awaiting a total crash in diesel consumption.

They will then use their Stor diesel generators for base load.

Kprime's picture

It's an El Nino car slump, or

we can't buy cars right now cuz we are stocking up on arms and ammo.

 

CARS?  Where were going we don't need cars.

Slowdrip's picture

Must be a zillion car lots down here in central FLA, overflowing with inventory, never seen anything like it....

rbianco3's picture

<== Nibiru (aka Planet X, Nemesis, The Death Star) will negatively impact car sales & the world economy in 2016

<== Nibiru is one of many new government ps-ops intended to confuse civilians (non government people) so much that they don't have the ability to determine if something is fact or fiction and... IF there was a brown/red dwarf star five times larger than Jupiter sitting a third of a light year away and barreling towards Earth on a 3,600 year elliptical orbit of our Sun than I would be able to see it, and I'd see serious anomolies (unusual weather, earthquakes, volcano eruptions, animal migrations, magnetic, inland states in USA buying extremely large ocean going vessels for pennies on the dollar) so you can't fool me.

 

Stephen_gva's picture

This article is tosh.
Car sales are flying globally
China car sales for November up 24percent YOY
China gasoline demand growth up 15percent year on year
EU car sales up 14percent year on year
UK car sales break records for December
USA car sales higher than 2007 levels 2016 levels set to break 18mn
USA car sales are down slightly but big increase in light trucks and SUV
People are buying bigger due to cheap gasoline
Conclusion
2016 should be a strong year for Palladium (catalyst demand) and Platinum as well to lesser extent mainly diesel catalyst demand
HSBC calling for Palladium to reach 650 2016 and 760 2017 and 900 long term
Prices have fallen recently on swift eTF reduction which is also a positive now.

Average bank and consultant forecasts similar
Spot 494 as of Friday