- #120 of 654
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Re: When things are REALLY DESPERATE!!! [lemko]
by gagrice
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Dec 30, 2008 (7:33 am)
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Replying to: lemko (Dec 30, 2008 7:20 am)
What does that tell you about Buick and Cadillac? When you have to have 1/3rd down for anyone to loan on them. Times are tough in the car business. There are lenders with money to loan. They just don't want to be stuck with cars that have NO value after sale. All GM would have to do is offer a full size SUV with a diesel that gets close to 30 MPG on the highway and I would give them another chance. Though I don't think they have gotten any better since 2005. I was not that impressed with the luxury of the 2007 Escalade I took for a test drive. It handled nicely. Seats felt like cardboard. The 2006 Escalade was much more comfortable seating. Like I told you the last Cadillac car I liked was the 1958 Convertible. All down hill since then.
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- #121 of 654
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Re: When things are REALLY DESPERATE!!! [lemko]
by nippononly
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Dec 30, 2008 (8:30 am)
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Replying to: lemko (Dec 30, 2008 7:20 am)
You definitely get the sense that there is a lot of desperation out there among dealers. We have a dealer here that is offering any used 2007 or newer vehicle from his lot for $0.01 if you buy a new Dodge Ram at MSRP. Whoa!
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- #122 of 654
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Re: When things are REALLY DESPERATE!!! [gagrice]
by boaz47
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Dec 30, 2008 (10:44 am)
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Replying to: gagrice (Dec 30, 2008 7:33 am)
I agree with you part of the problem the dealers are having is people trying to trade in a car. It is better to pay the sucker off and keep or sell it outright. In truth you don't make money in a resale and even the best resale would break even. But still you have paid to drive the vehicle $xxx.xx a month. With a paid off vehicle you only pay for repairs and gas. Like my Tahoe I can afford to keep it even if gas were $4.00 because I only drive it to tow or haul or if I want to take someone out to dinner and I want to go in comfort. Little cars aren't much for social engagements when women have to wear a new dress. we don't do that as much with the economy like it is but we used to.
Leasing or trading in every three years is like renting an apartment. Sure you have a nice place to live but it is never "yours".
What is good about things right now is you can get a very nice used car at a discount that will make many of us drool. People bought over their head with their cars much like some did with their houses and I see almost new cars being sold every day. Things got so inflated that people stopped thinking about ever paying off their house or their car. Now that thinking has come home to roost.
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- #123 of 654
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down the tube in a different way
by steve_ HOST
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Jan 01, 2009 (9:53 am)
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"there will always be a need for dealerships to service those products. I think that those dealership that remain nimble and flexible will survive, but there will definitely be a 'thinning of the herd,"
One Small Town Dealership Feels the Pinch but Sees Hope in the Future
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- #124 of 654
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Re: down the tube in a different way [steve_]
by nippononly
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Jan 01, 2009 (12:40 pm)
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Replying to: steve_ (Jan 01, 2009 9:53 am)
I wonder if any dealers are terminating new car sales but continuing used sales and/or warranty service. None of the many I have read about have done that - they have all gone entirely out of business.
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- #125 of 654
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Re: down the tube in a different way [nippononly]
by fezo
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Jan 01, 2009 (12:44 pm)
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Replying to: nippononly (Jan 01, 2009 12:40 pm)
When GM killed Oldsmobile we had a dealership in county that did that - became a used car dealership. Maybe a year or so later they got a Chevy dealership.
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- #126 of 654
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Re: down the tube in a different way [nippononly]
by steve_ HOST
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Jan 01, 2009 (1:07 pm)
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Replying to: nippononly (Jan 01, 2009 12:40 pm)
Sort of makes sense if the dealers can afford to put some inventory on the lot and keep a few mechanics busy. I wonder if they can keep the warranty business if they aren't ordering new cars though?
"Used car sales were down only 8 percent compared to 2007, and Certified Pre-Owned (CPO) sales were flat. During the same period, new car sales fell by more than 16 percent.
"During the downturn in the economy, many car shoppers hunted for bargains in the used car lot," observed Edmunds.com Analyst Joe Spina." link
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- #127 of 654
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Re: down the tube in a different way [steve_]
by boaz47
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Jan 01, 2009 (4:22 pm)
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Replying to: steve_ (Jan 01, 2009 1:07 pm)
The car auctions were the place to go. If you had some cash you could pick up some of the cars the bank was desperate to get rid of.
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- #128 of 654
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Re: down the tube in a different way [boaz47]
by gagrice
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Jan 01, 2009 (5:10 pm)
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Replying to: boaz47 (Jan 01, 2009 4:22 pm)
Is there a website that gives prices paid at auction? Also how would you find a list of dealers that have gone out of business? I do not know of any here in San Diego. It is probably safe to say most of them are hanging on by a thread. I know my Toyota agency has a new owner.
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- #129 of 654
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Re: down the tube in a different way [gagrice]
by boaz47
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Jan 01, 2009 (6:28 pm)
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Replying to: gagrice (Jan 01, 2009 5:10 pm)
I'm not sure where you get the prices paid. My cousin used to work for one of the Auction companies. And I had a good friend that was a used car dealer. They get a list of the auctions and you have to go and bid based on what you are willing to pay. I haven't seen a new car liquidation yet but they have to have them. Much like Big lots gets things.
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