Car dealers prep for lousy year (2008)

[UpInArms]

Source: Associated Press

DETROIT - When thousands of U.S. auto dealers gather in San Francisco this weekend, much of the talk will be about just getting through 2008.

The obstacles include a shaky economy, volatile stock market and tightening credit, setting up what economists are predicting could be the worst sales year in more than a decade.

With word Friday that Chrysler may have plans to thin its dealership ranks and the other two U.S.-based automakers looking to do the same, those left to sell another day may end up stronger — and car buyers may benefit as well.

"Fewer dealers means better prices for the customers," said Gerald Meyers, a former chairman of American Motors Corp. who now teaches leadership at the University of Michigan.

That's because dealers not making money aren't quick to offer discounts.

"If they're profitable, they won't lose the sale," Meyers said. "If they're not profitable, they might lose the sale on the margin."

Read more: http://news.yahoo.com/s/ap/20080209/ap_on_bi_ge/auto_dealers?_ylt=ApfR82LLRrawCRoQ1jv1tr2oOrgF

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Oh, come on, now!

When in the world did less competition lead to lower prices and better deals?

These stupid people who write or believe this crap just piss me off.

:grr:

[Jackpine Radical]

1. Apparently Adam Smith never drove a car.

Actually he couldn't pass the drivers exam because the examiner guy was so freaked out by Adam driving around with invisible hands.

[mike_c]

3. LOL....

Good one! :rofl:

[Jack Bone]

2. I think everyone should take into account..

That the questionable quote is from an Ex-Chairman of American Motors.

When was the last time American Motors factored into anything, 1980?

yeah that guy knows what he's talking about...:crazy:

[Joe Bacon]

23. OH, how I miss my 1970 1/2 Gremlin

I bought a brand new base model 1970 1/2 Gremlin in 1971 for $1,970.50 (and that was with Tax and license included). I got 11 years use out of it.

Now $1,970.50 won't even buy me half a Segway!

[bbinacan]

4. I'll need a new car soon

so maybe I'll get a good deal. And with high gas prices, the SUV I'll need for my job should fetch an even lower price.

[CatholicEdHead]

5. I planned for this downturn

My CRV has lots of life in it and will run for quite a while (even with basic repair costs).

[physioex]

7. Right....

Take care of the car with regular maintenance like oil changes. Also make sure you do the timing belt on schedule. You surely don't want it to break.

[CatholicEdHead]

16. Timing belt is due this summer

While it will not be cheap (and a bit below the mileage level) it is still better than a new car or a major engine repair (7rs or 105K).

[physioex]

17. Just a suggestion....

When you do have the timing belt done, have them replace the water pump. Also have them replace all leaky seals and have them install new drive belts. This is going to be a big expense however you will save money in the long run.

[Donnachaidh]

6. WTF??

"Fewer dealers means better prices for the customers," said Gerald Meyers, a former chairman of American Motors Corp. who now teaches leadership at the University of Michigan."

This butthead teaches leadership -- so basically he's a cheerleader. Any old spin will do when you want to LIE to people. Just be CHEERY about it!

[physioex]

8. What isn't being said on this board...

Is that there is very little to no profit on new car sales for a dealership. I am talking about a regular car not some exotics. After all the expenses such as commision and fancy showroom, most of the money is gone. They make most of the profit on used cars and service.

On Edit: The rate at my local dealership for a mechanic is $120/hr. :yoiks:

[high density]

12. The place I bought my car at was selling me hard on an extended warranty

My response was that for the $50-$100/mo they want me to pay over the life of the loan for a warranty, I can easily "self-insure" myself against these things for when the factory warranty expires. I can't believe anybody buys that stuff but they must make out great on the people that do.

[physioex]

19. I didn't mention that, but you are correct....

The "extended warranties" are a big profit item. It would be cheaper to self insure and save your money. Just take good care of the car by done simple regular maintenance and you should be fine...

[Historic NY]

9. I can't wait until 0% financing for 60 months from GM.

[Sen. Walter Sobchak]

10. Build me a car that is a tangible improvement over my old Toyota

and I will buy it.

[Diclotican]

15. policypunk

policypunk

Amen to that..;). The old rusty Toyota are still less expensive then a used american care.. Have a Corolla with a great mileage .5 Liter for a 10km drive.. But it is coming some sight that the old car is old..So I have to save money to a newer one.. And car are never cheap in Norway... Thinking about a Carina 2 or a Carisma... Don't know, but I really believe it to be a Toyota or a Nissan next time around...


Diclotican

Sorry my bad English, not my native language

[high density]

11. Bernanke will make sure interest rates go negative soon

There has never a better time to finance a shiny new auto!

[Diclotican]

13. UpInArms

UpInArms

Try to build cars that the rest of the world WANT to own,then you may get more money.. Today US manufactures of cars are making car that maybe the american public want. But that the rest of the world don't want because of their are to big, to expensive and using to much fuel.. If you made car who are smaller, shaper and using less petrol, you may get a deal.. And for the goods seake, made bumper that is good, not this "we are sailing on the road" bumpers.. Horrible to drive in, and you all-ways get car sick...

I know, been grown up in american cars, I know about that type of things.. Yeak:puke:

But I do _LOVE_ your sound of a V6 or V8 enige... A more lovely sound I don't know... Well if it is not a V12 RR Merlin engine in the front of a Spitfire then:evilgrin:

Diclotican

Sorry my bad English, not my native language

[UpInArms]

18. hello, Diclotican

the UpInArms household has 2 old subaru station wagons with 1.8 liter fuel injected engines - the 1988 is the better car - 35 miles per gallon - the 1993 is not so good but has 4-wheel drive for those snowy and not so good days!

glad to see you here posting at the DU - :toast:

[Diclotican]

20. UpInArms

UpInArms

Ah, Subaru, the old folks home had a Subaru too. When you are living in a place with a road full of gravel you have to have a decent car to drive in.. And who are driving up when you are needing it. We had a Ford once, but what a sled on the ROAD. every then an now it was out of the road, and then our nabour with a tractor had to come and pull it out... Then a 1988-89 Subaru Legacy was coming into the family.. And then a Subaru Impreza 1.6 with automate and 4WD was coming home.. The Legacy was sold, my old folks was never found of two cars. If we was to go somewhere and the car was occupied elsewhere the Bus was there... And the car was brand new, and was in the family to this year.. 13 year and "brand new" in many cases. All services followed so it was nice a car.. if i have had the money I have payed for the car myself.. But I have a old 1987 Toyota Corolla 1,6 16V twin cam.. Pretty fast, and inexpensive to drive.. But the age is coming to "hunt" the old car.. So I guess I have to save, and get a newer one...

4WD is always great to have when you are on snowy roads and in bad days;). But I have just one time stand fast in my old Corolla, The road was totally slippery..

Thank you, for the welcome, have been here sometimes now, and have typed a lot, but I am always pleased when folks say welcome. For the most part americans are a open and friendly group of people:toast: So I guess it is hope for you too when it come to it
Have ben lurked her since before the Iraqi war, to se what it was. But it is the last couple of mounts I have try-ed to communicate something.. But I have read a lot.. Specially "10 conservative idiots" every week. Always lafed about what they have been up to. How they manage to do it all:think: Even that I in many prospect ARE pretty conservative myself.. But still verry long way to be a Republican I guess:P (good forbid..)

Diclotican

Sorry my bad English, not my native language

[Zorra]

14. I buy cheap cars that get 35-40 mpg, beat them to death, and then get another one.

I'll spend about the same, in the course of my lifetime, on my cars, maintenance included, than a person that buys one new mid-priced car this year.

[sofa king]

21. Selling cars that the public wants and needs might be a solution.

Let's see... what does the public want and need right now? Something affordable and highly efficient, with low maintenance costs, and preferably of low environmental impact.

I'm sure GM is cranking away on that as we speak.

[FarCenter]

22. Auto dealerships are not competitive

Auto dealers have franchises and are legally protected from competition, either by direct sales from the manufacturer or by others going into business in their area.

If they weren't legally protected from competition, you could buy new cars at WalMart or CostCo for a lot less.

The US manufacturers dealer networks were set up years ago to sell and maintain cars that had a very high maintenance requirement.

The Japanese and Koreans arrived with a much more reliable product that required a lot fewer dealers, higher volume per dealer, and a lot less dealer overhead per new car sold.

GM, Ford, and Chrysler have about 3 or 4 times too many dealers.

[NickB79]

24. You mean there isn't a market in gas-guzzling POS trucks, SUV's and muscle cars?

The hell, you say!

[Imagevision]

25. Chrysler announced this week they're eliminating 1/3 of their dealerships asap...!

This is truly bad news that was announce only one time on MSNBC and the story faded the same day.

[ckramer]

26. What makes a s***ty car today worth 20,000+ dollars upward?

The price of new car is insane.

Why can the car factories go back to the basic - selling basic models under 10,000 dollars?


All I need is a car with a radio, and air conditioning. That is it.


Do they sell something like this today?

I don't need auto*** this auto*** that...power this power that...

[Hawkeye-X]

29. I don't need a model with a CD or radio!

If they threw it out and replaced it with a clock, we wouldn't notice any difference, since we DONT hear squat. (We're both deaf)

and yet, my car (which is almost paid off) has a CD in it. Barely used.

[Dont_Bogart_the_Pretzel]

27. WTF

I had to read that statement a couple of times.
"Fewer dealers means better prices for the customers,".....what :eyes: ever.........








and I agree with you :grr::grr::grr:

[Hawkeye-X]

28. We had plans to purchase a new car in the fall of '08..

But it's gone now due to the fact that we've decided to go on a cruise instead and want to make sure that we pony up the dough before May of '09. At that point, we will purchase a new SUV (Probably a Honda CR-V)