wantan8

The thing is, the average family cannot afford a 30k car. Most people can't even pay off their college debt let alone afford something like that. Secondly, most cars aren't worth what you pay for them and really never have been. I have never met a person who thought a car was worth the money unless it was just a steal of a deal. This especially goes for cars 40k and up. However, even a fully loaded civic can go for 25 k these days. Ridiculous.

If massive inventories get deleted and it all turns into orders, then you will have most of the population driving used cars/beaters and a few semi-wealthy/wealthy driving the new ordered cars. I figure that the cost of the average car will go up if production is chopped in half.

The main problem though with all of this is depreciation. The auto industry needs to somehow be reorganized so that when you buy a new car, it doesn't lose 30-50% of it's value after the first year alone. Depreciation is the absolute proof that new cars are not worth what you pay for them.

77mjd

I agree, but I dont think the cost of a car would end up going up much. If supply would be more in line with demand, the industry would already be saving a ton by reducing all of the overhead associated with producing way too much inventory, which is what is still happening. Tons of jobs need to be slashed, but the govt doesn't want to let this happen so they will probably keep subsidizing "overproduction". Thus, there is still too much supply and that is also part of what causes the ridiculous depreciation nowdays. I doubt Ill buy new anymore. Its just not worth it. Find one thats low mileage and a year or two old and save yourself 10k +.

RIWWP

iTrader: (2)

I know of a used car dealer that operates this way. He only has a lot for ~15? cars, and every single one is already spoken for. He takes customer orders for whatever car they want. As general as "an automatic 4-door economy" to literally as specific as you want, along with your price range. He goes out to auctions and other dealers to locate your car, or a car that meets your criteria. Gives you a call when he finds it asking for approval. Once you agree, he buys the car, fixes it up to 'certified' level quality gives it a 1-year warranty, free scheduled maintenance for a year, and charges $300 beyond what it cost him. The final invoice actually has car price + parts + labor + $300 "Profit" line. He has a good eye for what it will cost to get the car up-to-snuff, and is incredibly honest, so the only drawback is that you end up buying the car sight-unseen

He is constantly busy, and doing very well.

Huey52

iTrader: (2)

Chrysler/Dodge has done some interesting dealer consolidations in the past year. The largest dealership in a given area sells new cars and all others can only sell used vehicles. At first the little guys saw this as a bad deal but now they're very pleased.

btw: I agree that cars in general aren't worth the money. Although I'm fortunate to have the means, I've never been able to justify spending more then I did on my '8 (which was a good deal after sitting on the lot for a year), and even that took allot of internal debate!

Hydrogen fuel cell vehicles with their common chassis, but individualized bodies, may just be the answer.

kvndoom

A car's true value isn't numerical. It is what the owner perceives it to be. If you love your car and enjoy driving it and you keep it, then it is worth the price. If you hate the car and the experience of driving it or owning it, then it doesn't matter what you paid for it. It has no value to the owner.

I pretty much hate my Mazda6, even though it's almost paid off, gets better mileage on cheaper fuel, and is more practical. The rattles and cheapness make me miserable when I drive it. So the car is worthless to me, even though it is financially more "valuable." The only reason I haven't put it up for sale yet is because my boss may be in the market for an econobox soon and I've told him I'll give him a hell of a deal on it if he wants it.

I am using the 8 as my daily driver more now. The ride is a good bit harder (I'm gonna fix that with some GT tires), but it's quiet on the inside and I really enjoy listening to the engine when I drive. In the 6 I play the stereo to drown out unwanted noises. In the 8 I hardly ever listen to the stereo because I enjoy the sound of peacefulness, only momentarily broken by the sweet revving on that engine. That is blissful driving. Regardless if the car cost more, has depreciated much worse, is smaller, gets **** for mileage with the most expensive gas, and is impractical in almost every way, it has more value and is worth the money because I ******* love it. If I love that car as much on the day I part with it as I do now, then the depreciation won't mean a thing. I will feel that I have paid for an experience. 4 doors and a motor makes a car. You can pay any tiny amount for a car, but its "value" comes from the experience you get from having it.

nycgps

iTrader: (1)

Come on ... March .... end already ...