Booba

Auto Sales: Good News on the Horizon?

"Cars depreciate with age. Holding onto a car longer means more repairs, and less value down the road. Consumers will begin to feel the pressure of the trade-in value of their car, good deals on new cars, and repair costs that could be mounting."
I'm sorry but this statement sounds ridiculous.
Holding car longer means saving more money!
It was estimated if you drive your car up to 200,000 miles you save average $20,000 over the years you keep it.
I drive 1999 Camry that has 195,000 miles, and I spend money mostly on maintenance, not fix. I estimate I spend no more than $80 per month on maintenance. If I buy a new Camry I'll pay at least $250-300 per month fro 3-6 until I pay it off, not to mention I'll have to put some 5-7K as down payment.
Not to mention the car's value falls some 5% just after you drove out of dealership.
But even if you are new cars freak, you must have pretty good credit history now to get auto loan.
Did the author hear about credit crunch and that banks are not willing to give money to anybody who can move?
"I will project that auto sales will begin their rebound in December, and that by Presidents Day in 2009, the auto industry will be stabilized."
This prediction is also ridiculous and sounds like "predictions" of notorius National Association of Realtors :)
Why will happen in December or by President Day 2009? People will start getting higher salaries? Banks will start reckless lending again?
And why by President Day? Why not by New Year or Easter or Valentine Day? I personally prefer the latter! :)