Peak Auto Sales; New Car Sales Are Declining

[2strokeNorthstar]

Yep and for longer times than what should be reasonable. 72-96 month car loans with 8-12% interest rates. Way too much payments in interest, especially since very few people actually pay more than the regular payment every month. When I bought by truck a few years back the salesman and manager were both surprised when I did a 4 year loan on it. No one does a 4 year loan anymore. Yeah, I'm sure they don't because they care more about the monthly payment than what they would pay in interest. And I paid the truck off in 1 year so I paid even less interest than waiting 4 years to pay it off. Most people have no clue what they end up paying in interest on a loan but as long as the monthly payment is low enough its worth it.

It actually makes more sense now than it did in the past. The days are over where you lost 10-20% or whatever as soon as you left the lot. I am looking at cars where a used 2023 cost more than a new 2024. No clue why or who would buy the used model.

 

[supton]

It actually makes more sense now than it did in the past. The days are over where you lost 10-20% or whatever as soon as you left the lot. I am looking at cars where a used 2023 cost more than a new 2024. No clue why or who would buy the used model.

I have to wonder if that won't flip back around at some point. One fluctuation in the market, impacting consumers buying/spending ability, and the automakers will have to go back to actually selling product, quantity instead of higher profit margin / lower number of sales. They can sell more if it is cheaper, right now they don't have to sell cheaper, so they don't.

Or they'll wait until it crashes and demand a handout. Can't say that hasn't happened in the past. Reading tea leaves and planning for the future isn't what these guys do best.

 

[CKN]

It actually makes more sense now than it did in the past. The days are over where you lost 10-20% or whatever as soon as you left the lot. I am looking at cars where a used 2023 cost more than a new 2024. No clue why or who would buy the used model.

While I do doubt what you are saying-I am seeing continued drops in the wholesale blue book values. Seems to be a disconnect between what they are worth at trade in-and the depreciation (or lack thereof) of what the dealer thinks when they slap a sales price on them.

 

[Snagglefoot]

The boomers are the ones that made the US car industry. Now sunset is coming and 1/3 of the boomers have already passed away. Now we are relying on the subsequent generations but they live in a more crowed world with less bang for their buck.

 

[2strokeNorthstar]

The boomers are the ones that made the US car industry. Now sunset is coming and 1/3 of the boomers have already passed away. Now we are relying on the subsequent generations but they live in a more crowed world with less bang for their buck.

So is that good or bad for prices?