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  • Slowing car market?

    A friend of mine here is a branch manager for Chase Bank. He said the car sales market has really slowed down, and that there are still a lot of 2018 units on the lots. I asked him why, and he said he wasn't sure, as interest rates are quite low still. He also said any home $250K and up is sitting. Those $400K and up, there's 2 years worth of inventory of them for sale. I don't know if this is representative of the rest of the country but in terms of where I live, things are slowing down economically.
    How can you have any pudding if you don't eat your meat?

  • #2
    I wouldn't be surprised. Every time POTUS tweets some new threat, the economy convulses. High consumer confidence is important to sell things like houses and cars. When people turn on the news and see the stock market dropping hundreds of points one day and going up hundreds the next, uncertainty sets in. And now there's more and more talk about a war with Iran, which adds to that uncertainty. We've had the longest bull market on record. It has to end sometime and people are beginning to realize that. Record low unemployment is great but future prospects are important too, especially when deciding whether or not to make a major purchase.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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    • #3
      Houses selling within 30 days around here...sellers market for sure.
      Gunga galunga...gunga -- gunga galunga.

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      • #4
        I'm surprised your friend can't speculate as to why car sales are down.
        Cars last longer than they used to.
        Young people are less interested in car ownership (or feel less need to own a car).
        Fewer people live in rural areas. More people live in urban areas where they have access to public transportation and ridesharing or can reach the places they need to go by walking.

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        • #5
          Originally posted by scfr View Post
          I'm surprised your friend can't speculate as to why car sales are down.
          Cars last longer than they used to.
          Young people are less interested in car ownership (or feel less need to own a car).
          Fewer people live in rural areas. More people live in urban areas where they have access to public transportation and ridesharing or can reach the places they need to go by walking.
          All true. The average age of cars on the road today is at a record high. Heck, my car is a 2006. That's the oldest car I've ever had so I'm a perfect example.

          The second and third reasons you mentioned are also very true, and are connected. There has definitely been an urban migration in recent years. More and more people are moving to cities for a variety of reasons: jobs, entertainment, transportation, social justice and equality, etc. The growth of Uber and Lyft have made owning a car an expensive luxury that a lot of people just don't see the point of doing. And it isn't only young people. An older woman I know from my job doesn't have a car. She takes Uber to and from work every day. She still saves money over owning and maintaining a car, gas, insurance, etc. And she's in a smaller town about 15-20 miles from the nearest city.
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

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          • #6
            I guess it is regional. We had a hard time finding the vehicle we wanted within a 500 mile radius of us. Every time we called a dealership, the car was already sold. Even my POS car has already sold after we traded it in. Any house in the $400,000 range is snatched up quick here. A house smaller than mine just sold for $470,000 on my block after 40 days on the market. I was just talking to my husband about all the new cars on the road, but we live in a HCOL area. It seems like every 3rd car is a stupid Range Rover Evoque (which looks like smashed hell) or a Tesla. I still conquer all that I survey with my Grand Cherokee Trailhawk, and that is really all that matters.

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            • #7
              The big 3 have been expecting a downturn for at least the last 12 months, closer to last 18. We had data a year ago that new car sales were slowing, yet most of big 3 are having record quarters for revenue, or are up year over year on revenue.

              Auto sales tend to peak when a new model is introduced- for american companies most models change every 2 or every 4 years. In addition, auto companies have to increase costs because of the tariffs. This will slow down sales some as well.

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