Well, here's two stories that certainly seem contradictory
February 28th, 2013, 10:00 AM
#1
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Location: southeastern Michigan
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Well, here's two stories that certainly seem contradictory
They're both from the same source (CNBC) at the same time, although the second one is dated a month ago.
New Cars Increasingly Out of Reach for Many Americans
http://finance.yahoo.com/news/cars-i...145957880.html
Auto Sales Start the Year With a Bang
http://www.cnbc.com/id/100428034?__s...ars|&par=yahoo
New Cars Increasingly Out of Reach for Many Americans
http://finance.yahoo.com/news/cars-i...145957880.html
Auto Sales Start the Year With a Bang
http://www.cnbc.com/id/100428034?__s...ars|&par=yahoo
February 28th, 2013, 10:39 AM
#2
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They don't really conflict, one is about the affordability, the other is about sales in general. Personally I can't see how people are willing to have a car payment in excess of 5-600 a month. I sell cars and it just amazes me.
The other thing is what are the auto manufacturers going to do when interest rates actually go back to normal. Take a 50k truck @4% for 72 months = 782.5/ month.
At 6% 828.5, at 8% 876.50, those are house payments.
The other thing is what are the auto manufacturers going to do when interest rates actually go back to normal. Take a 50k truck @4% for 72 months = 782.5/ month.
At 6% 828.5, at 8% 876.50, those are house payments.
February 28th, 2013, 10:43 AM
#3
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They don't? I certainly think they do!
One says that only a small fraction of the population can afford a new vehicle, and the other says that new vehicles are selling like hotcakes. Certainly seems counterintuitive to me.
I guess those few people who can afford them are buying a lot of new cars.
One says that only a small fraction of the population can afford a new vehicle, and the other says that new vehicles are selling like hotcakes. Certainly seems counterintuitive to me.
I guess those few people who can afford them are buying a lot of new cars.
February 28th, 2013, 10:46 AM
#4
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Location: LI,NY
Posts: 3,783
They don't really conflict, one is about the affordability, the other is about sales in general. Personally I can't see how people are willing to have a car payment in excess of 5-600 a month. I sell cars and it just amazes me.
The other thing is what are the auto manufacturers going to do when interest rates actually go back to normal. Take a 50k truck @4% for 72 months = 782.5/ month.
At 6% 828.5, at 8% 876.50, those are house payments.
The other thing is what are the auto manufacturers going to do when interest rates actually go back to normal. Take a 50k truck @4% for 72 months = 782.5/ month.
At 6% 828.5, at 8% 876.50, those are house payments.
I wonder if Sandy skewed those numbers? I think most people can't afford, but when insurance nets you a new car......
Last edited by ent72olds; February 28th, 2013 at 10:49 AM.
February 28th, 2013, 03:13 PM
#5
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Join Date: Apr 2008
Location: Dallas TX
Posts: 5,662
They don't really conflict, one is about the affordability, the other is about sales in general. Personally I can't see how people are willing to have a car payment in excess of 5-600 a month. I sell cars and it just amazes me.
The other thing is what are the auto manufacturers going to do when interest rates actually go back to normal. Take a 50k truck @4% for 72 months = 782.5/ month.
At 6% 828.5, at 8% 876.50, those are house payments.
The other thing is what are the auto manufacturers going to do when interest rates actually go back to normal. Take a 50k truck @4% for 72 months = 782.5/ month.
At 6% 828.5, at 8% 876.50, those are house payments.
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