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  • Has GM Changed Its Tune Yet? [View article]
    I agree, 30 mpg is just not that much anymore. Ideas like an affordable, souped-up diesel engine seem a lot more reasonable as a way to meet the future head on. Too bad you are retired Oilcan821!

    HomeyDDogg-- thanks for the good word.

    Judy
    Jan 08 02:13 am |Rating: 0 -2 |Link to Comment
  • CRMT: Another Nail in Automakers' Coffin? [View article]
    Hey Bill,

    Happy Holidays to you and yours!

    ATB,
    Judy
    Dec 23 12:37 pm |Rating: 0 0 |Link to Comment
  • CRMT: Another Nail in Automakers' Coffin? [View article]
    Dear Jay73,

    Several interesting questions for which I'll hazard a few guesses: Used cars have less overhead to begin with. Building a new car and selling it takes a lot more money than just selling an old car. So even if pricing keeps going lower, it's still going to be less of an impact than on those who have manufacturing costs.
    In the same vein, I'd venture to say that no matter how much you lower prices on a new car, it's still got to be higher than an old car. My brother once told me that as soon as you get the keys and drive your new car away from the showroom, you've lost 10% of the value of your car.

    Again, it's all guesswork, but I agree with you about the home vs. car question.

    ATB,
    Judy
    Dec 09 08:26 am |Rating: 0 0 |Link to Comment
  • CRMT: Another Nail in Automakers' Coffin? [View article]
    Hi Alan,

    I think what's relevant to the big automakers, in terms of CRMT, is that they are doing well in this downturn. Car manufacturers are obviously not. CRMT is poised to gain market share and is working hard on that. I doubt they will put car makers out of business-- after all, a used car has to be sold new first! But if more and more customers that would have bought a new car are looking for alternatives, then it will take that much longer for new car sales to revive.

    The other important aspect is that the company found that SUVs had become more attractive initially when oil prices and auto prices were falling last quarter. Now gasoline is even cheaper, but the spike in SUV interest has waned. For a car manufacturer like GM that has so much SUV inventory and manufacturing infrastructure, that's not a very good indicator.

    I don't think CRMT will put the Big Three out of business, but do believe the trends they note have bearing on the automotive marketplace.

    All the best,
    Judy
    Dec 04 08:44 am |Rating: 0 0 |Link to Comment
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