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Smart Shopper Buying a Car During the Credit Crunch
343 messages, Last post on Nov 14, 2008 at 5:59 AM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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Replying to: kirstie_h (Sep 30, 2008 11:35 am) I came to this forum after reading a comment from GM in which an executive said that sales were unsustainably low. I would like to point out to GM that 50 years ago GM calculated a 3-year replacement cycle for every car they sold. They were right. Unfortunately, GM pushed quality down to match the cycle. It was easy for resurgent foreign competitors to lure customers away with reliable cars even if they cost more than GM's offerings. GM responded by drawing quality up to levels to match foreign competition. In another unfortunately unexpected outcome, GM's capital structure depends on the same old 3-year replacement cycle. The replacement cycle is now closer to 6 years, and GM is starved for new cash. The good news is that GM quality is now competitive with everyone in the world and GM will survive this market retrenchment. I purchased a new Chevrolet Malibu in each of 2003 and 2004. I also purchased a new Dodge Intrepid in 2004, and a used Ford Focus in 2004. All four of these vehicles are running well and are quite dependable. Looking forward, I have no intention of purchasing another car that runs on internal combustion of fossil fuels alone. The first and second generation of hybrid vehicles are interesting. I'd buy a Ford Escape Hybrid if I just had to get new wheels. Lacking an emergent need, I will wait until the 3rd generation of hybrid cars such as the Aptera Type-1h and the Chevrolet Volt become available before making another purchase.
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Replying to: jeromeb (Nov 03, 2008 7:22 pm) "GM's capital structure depends on the same old 3-year replacement cycle. The replacement cycle is now closer to 6 years, and GM is starved for new cash." Though with $20 billion in cash, at $2 billion a month that means 10 months at current rates. They need help obviously. Yes we can ! They survive but have doubts about Chrysler ( Cerebus) Merge with Renault ? Oh the shame. |
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Replying to: duke23 (Nov 04, 2008 7:40 pm) Just a thought... |
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Replying to: fezo (Nov 05, 2008 9:41 am)
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Replying to: joel0622 (Nov 06, 2008 5:25 am) I would much rather have incentives to buy cars than loans directly to the auto makers. Unlike the Chrysler bailout I don't think you have a situation where there is a company saving vehicle waiting in the pipeline. Hard to believe now that the K cars - Reliant and Aries - were that but they were. |
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Replying to: joel0622 (Nov 06, 2008 5:25 am) Actually, that is not a bad idea. |
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Replying to: joel0622 (Nov 06, 2008 5:25 am) Well, you can always roll it into a second mortgage or home equity loan, and get the writeoff that way. Oh, wait, that's one of the things that got this country into the credit crunch mess it's in! Ooops. 
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...I got 0% financing on my car.
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Replying to: lemko (Nov 06, 2008 10:11 am) Might have depending on how much of a rebate you gave up to get 0%. I.E lets say the rebate was $5K or 0% and you chose the 0% on the loan because on a $30K loan  8% would have cost you $6500 in finance charges. But if you could have deducted that $6500 at tax time you may have been better off
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