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JPMorgan expects pent-up demand to help lift auto sales 14% Y/Y in December to 15.4M vehicles,...

JPMorgan expects pent-up demand to help lift auto sales 14% Y/Y in December to 15.4M vehicles, although the firm notes the drama of the fiscal cliff talks in Washington throws a wildcard into the mix. A survey of consumers shows a good portion will rethink their pending automotive purchases due to the uncertainty over tax rates.
Comments (7)
  • EdwinJ44
    , contributor
    Comments (60) | Send Message
     
    That just does not sound right. Most people simply do not "rethink" their pending automotive purchases based on uncertainty about possible tax hikes! If they need a car, they buy it. Period. They will worry about it after the payments are past due...just like they do with their credit card payments. They don't seem to worry about budgeting until it's way to late. If they want or need something, they buy it and worry about it later. Sorry, sad but true. Almost everyone goes through this at least once in their lives. (Over spending beyond what their budget can endure.)
    31 Dec 2012, 12:17 PM Reply Like
  • moran
    , contributor
    Comments (214) | Send Message
     
    Edwin...you keep using the word "they". I, therefore, believe you do not consider yourself one of "them". Good for you, I have a brother like that. He has never paid a dime in interest all his life, including his home and all four of his sons homes. He has earned every penny he has through hard work and smart and non greedy investing.... Happy New Year and good luck in the coming year to you and everyone else out there.
    31 Dec 2012, 01:07 PM Reply Like
  • frogola
    , contributor
    Comments (74) | Send Message
     
    if you need a car it;s one of those things you will buy. unless you have a horse, or can run down the freeway at the minimum speed of 45 miles per hour. and I think most people will buy what they can afford.ford
    31 Dec 2012, 04:23 PM Reply Like
  • Tdot
    , contributor
    Comments (3451) | Send Message
     
    What huge numbers of folks did during the Great Recession, when vehicle sales dropped from around 17 million to below 10 million, is keep their old cars and trucks longer, getting them repaired if needed. When necessary, they bought a used replacement commuter or family vehicle, or one for the college-bound kid, when other alternatives were unaffordable or risky.

     

    Used car sales skyrocketed during the 2008-2010 time frame, along with the prices, when supplies fell as demand rose.

     

    Yes, The People will buy still vehicles - they may just not buy new ones, preferring instead to take a chance on a cheaper used car that might need a little work.
    31 Dec 2012, 06:03 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5366) | Send Message
     
    More people will take public transportation. Ever since gas hit $3/gallon, I see more people taking the bus.
    31 Dec 2012, 09:55 PM Reply Like
  • frogola
    , contributor
    Comments (74) | Send Message
     
    that is true, but I think we should take into account that it was easier to work on your car back then and most people did. now days it's hard to even see your engine, not to mention the diagnostic equipment needed. whether repair costs are more or less when taken in, I don't know.I would think more.hopefully it won't get that bad but if it doe's I may be looking at public transportation myself. although it's pretty cold in Michigan right now and waiting for a bus well first I need a bus stop.
    1 Jan 2013, 02:49 PM Reply Like
  • Tdot
    , contributor
    Comments (3451) | Send Message
     
    Frog - with few exceptions, what most mechanically-inclined people did "back then" to the engine was change the oil, filters, and spark plugs, replenishing other fluids, and possibly replacing the serpentine belt. They still can, although some of those spark plugs may be a little hard to get to.

     

    Some dared to adjust the carburetor and the distributor ignition timing - but those tasks are totally obsolete now.

     

    Very few attempted anything as complex as replacing a timing chain or belt, never mind getting at the valves and piston rings.

     

    But remember - "back then" an engine could barely last a year without undergoing significant mechanical maintenance. Routine oil changes used to be every month or 1000 miles, topping off weekly, and then it came to each season or 2500 miles. Of course the oil companies and mechanics loved and encouraged that practice, and they still do!

     

    Meanwhile, most engines today, except in extremely abusive conditions, can go a year or 15,000 miles or more between oil changes, especially with synthetic lubricants, and spark plugs and other engine components can go 5 or even 10 years. There is virtually nothing left for ordinary folks to "work on", besides perhaps the wiper blades and washer fluid. The engine computer manages and monitors everything happening, thousands of times a second, and reports when something is wrong.

     

    Even the tires and brakes can last for years and years.

     

    The point is, yes it was maybe much easier to "work on" your car back then, when it was important to have that survival skill. Engines were very sensitive and needed regular tweaking and adjustments, and a lot of regular care, or they would disintegrate in a year. Now there is virtually no reason to do so. The engine takes care of itself, with reasonable treatment.
    1 Jan 2013, 03:24 PM Reply Like
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