Tag Archives: economy

Bad Economy, Get A Deal On New Cars

Bad Economy, Good Deal

Bad Economy, Good Deal

A bad economy and slow sales means that it’s a buyers market in the automotive market.  Dealerships are in a hurry to push old inventory to make room for the 2010’s that will start showing up any minute.  Furthermore, the slumping economy means there are less customers even walking through the door, so they will be more willing to make a deal on the spot.

Let’s also look at the threat of dealerships being closed by the manufacturer themselves.  Already in the news there have been reports of General Motors and Chrysler closing dealerships all over the US.  Typically these are smaller volume dealers where their territory is grouped into a larger dealership organization.  When these places are closed down, usually all the receive is a letter in the mail from the manufacturer, and a lot of inventory to unload before they close their doors.

This last example is a sad state of affairs that we are currently faced with.  But it gives buyers a strong opportunity to go out and buy brand new GM and Chrysler vehicles for a fraction of what they would have cost even a few months ago.  A dealership doesn’t want to take an even lower cost from a competing dealer buying inventory, so if they can unload on customers, they will.

If you are in the market for a new car, start making some phone calls.  Also, watch the news, find out what dealerships have been notified they are closing, you might just find a deal and a reason to buy new over used.

What Recession, says Ferrari

2008 was a good great year for Ferrari and the huge down turn in late 2008 didn’t seem to slow down their high priced performance cars.  As a matter of fact, Ferrari set sales records in 2008 with an ROS of 17.6% and investments research in 18%.  Basically, they made a lot of money selling sexy women disguised as sports cars.

To put this in perspective, only about 25% of all Ferrari cars are sold in the US.  In 2007 they sold only 1,700 cars, which they matched in 2008.  But, in Eastern Europe Ferrari increased sales from 2007 to 2008 by more than 20%.  Furthermore they increased sales figures in the Middle East, South Africa, and Japan.

According to Ferrari they relied on agrressive cost cutting measures and benefited from a greater offering of vehicles than previous years.  The future looks great for Ferrari, with plans to produce facilities that will allow the manufacturer to produce their own energy.  However, like other businesses, the CEO of Ferrari warns of the uncertainty of 2009 and does not intend to remain still.

Ferrari

Ferrari

Setting Up Their Own Failure, The Automotive Industry

The automtive industry is in peril and the only options according to our appointed leaders are either bail out or let fail.  However, myself and others feel there is a gray area to the economic problem facing domestic auto makers.  Specifically in the way we handle imports, current goals by the Big 3, and the impact unions have on the cost of a new car.  I intend to detail some other ideas that could benefit us in the long run and dont’ involve a black or white approach to the US economy.

Low Domestic Sales

Tariffs could be the automotive industries new best friend and it can be implemented almost immediately.  The immediate effect would be higher priced imports, thus giving domestics an advantage in the market place.  Those opposed to Tariff increases stand behind unfair trade and potential to damage world trading, but I feel now is the time to act.  Furthermore there would be more incentive for manufacturers to bring their plants to the US, providing more jobs for Americans.

Domestic cars and trucks are quality vehicles and often times can compete equally with their import counter parts.  Somewhere within recent years there has been a stima placed on domestic vehicles and the idea that buying imports was the ‘green’ thing to do.  In reality domestics compete on a level playing field in fuel economy, quality, and dependability.  Therefore I believe the real deal breaker amongst new car buyers is price and we have a tool to tilt the scales in the domestic’s direction.

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Customer Rated Most Fuel Efficient Vehicles

Fuel Efficient Cars

Every engine is different, even if it’s the same model, same size, etc…every engine will act and react a little differently.  Generally these differences can be chocked up to how the engine was broke in, during it’s most important first 500 miles or even be effected by who was working on the assyembly line the day it was made.  Point being, fuel economy can change from vehicle to vehicle with no obvious explanation, there are just differences.  So, instead of hype, Market Watch, turned to it’s readers to choose which vehicles are the most fuel efficient.

It may surprise you, but Ford makes the list, along with luxury brand economy BMW.  Ford and BMW were arrived at being the most fuel efficient based on a 6 month long study.

Starting March 1, 2008 and ending August 31, 2008, Expert System examined reader comments and messages on the Web sites: Automotive.com, CarandDriver.com, Carforum.com, and Carspace.com. Only readers’ opinions related to fuel efficiency were analyzed, not manufacturers’ specifications for the vehicles. The luxury vehicles with the highest ratings of fuel efficiency, ranging from the highest score on, are: BMW, Lexus, Acura, Jeep, and Infiniti. The non-luxury vehicles with the highest ratings are: Ford, Toyota, Hyundai, Nissan, Chevrolet, and Honda. The auto brands were classified based on their sales prices.

It’s believed that the information arrived from the semantic software, based on information from users, is the most honest feedback a potential buyer could find.  Completely unbiased, the information collected offers insight to what vehicle owners really feel about their luxury and non-luxury cars.  So, if you are feeling the pressure at the pump, doing your research can eliviate some of that stress in the next automotive purchase you make.  Congratulations Ford and BMW!