Overstocked
Hardly a day goes by when we do not hear of more woes in the automotive industry. Even the Japanese auto makers are showing quarterly losses, some for the first time in 40 years. You can see by these photos, that because people are no longer buying cars, they are beginning to get stock piled. 
This obviously means that there will soon be desperation to get rid of them. This is both good and bad. These cars must be sold soon, but because everyone knows that the really red hot sales are yet to come, they are not buying today, even though dealers are offering great rebates and zero % financing. This is what happens in a deflationary period. Why would anybody buy a new Toyota for $24,000.00 today when it will soon be offered for $20,000.00. Only when prices start to creep back up will folks begin to buy again. It is called inflation and it always follows a recession. I know, I am sounding like a broken record. 
I'll take one of those little red ones and I will pay $18,000.00. That is my final offer. Oh, and I want a year's worth of free gas.
Hardly a day goes by when we do not hear of more woes in the automotive industry. Even the Japanese auto makers are showing quarterly losses, some for the first time in 40 years. You can see by these photos, that because people are no longer buying cars, they are beginning to get stock piled. 
This obviously means that there will soon be desperation to get rid of them. This is both good and bad. These cars must be sold soon, but because everyone knows that the really red hot sales are yet to come, they are not buying today, even though dealers are offering great rebates and zero % financing. This is what happens in a deflationary period. Why would anybody buy a new Toyota for $24,000.00 today when it will soon be offered for $20,000.00. Only when prices start to creep back up will folks begin to buy again. It is called inflation and it always follows a recession. I know, I am sounding like a broken record. 
I'll take one of those little red ones and I will pay $18,000.00. That is my final offer. Oh, and I want a year's worth of free gas. 
1 comment:
I know that in the midst of all those cars there's gotta be a lil black sports car with chrome trim and a sunroof. Oh, and let's not leave out the fancy dvd player or Bose stereo (heehee). Geez, I wonder what I would pay today for this same lil car I bought a year ago ???
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