speedflex

U.S. Auto Sales Woes Continue
By MIKE BARRIS
August 25, 2008; Page B3

U.S. auto makers are expected to report big declines in August domestic sales despite stepped-up incentives, according to research firm J.D. Power & Associates, though industrywide sales are expected to improve slightly from July's moribund rate.

Ford trucks in a dealership's storage lot in Chicago. U.S. auto makers are expected to report big declines in August domestic sales, according to J.D. Power & Associates.

The research firm still expects sales in the closing days of the month to improve because of General Motors Corp.'s 100th anniversary sales event, which offers "employee pricing" on most vehicles and cash rebates on selected light trucks.

The J.D. Power report, based on sales through Aug. 17, estimates sales for the month will come in at around 1.21 million vehicles, or 13.4 million vehicles on a seasonally adjusted annual rate. That is down from the August 2007 seasonally adjusted rate of 16.2 million vehicles, but up 6.3% from July.

"Both cash rebates and APR programs continue to rise from year-ago levels, as auto makers struggle with weakening light-truck sales," said J.D. Power. The average time a vehicle sat on the lot during the first 14 selling days of the month rose 14% from a year ago, it said, "adding pressure to increase incentive programs."

All major manufacturers had year-to-year retail-sales declines through the first 14 days of the month, although Nissan Motor Co.'s decline was modest. "That general pattern is expected to hold through the remainder of the month, with only GM by the end of the month expected to show a significant improvement over its month-to-date performance as its incentive program takes effect," J.D. Power said. Only Nissan is expected to finish the month with higher sales -- up 1.5%. Declines of 24% to 30% are forecast for GM, Ford Motor Co. and Chrysler LLC, while Toyota Motor Corp. is projected to have a 13% decline.

"With the month now half over, the pattern of very weak sales that has persisted for at least the last several months is clearly continuing into August," said J.D. Power Chief Economist Bob Schnorbus. "However, with auto makers getting near the end of one model year and getting ready to start the next, sales are beginning to show some signs of improving over July's dismal sales performance."

http://online.wsj.com/article/SB1219...rss_Autos_Main

LexFather

Scary how things change so quickly. I don't expect anything to get better until after the election, when people know who is in office for the next 4 years.....

Its clear some automakers are being very aggresive with low APR/0 down/lower pricing while others try to brave the storm.

speedflex

The economy and fuel costs are affecting me as a potential customer. I'm about due to go car shopping but I just can't fathom adding a monthly note to my budget right now. I haven't thought like that in over 15 years.

rominl

iTrader: (4)

part of the reason why we have been holding on off new car purchase for this long

mmarshall

I fail to see what difference it makes who is the next President, as far as car shopping is concerned. People's car needs (and wants) are not likely to change just because Bush is leaving and someone else will be taking his place.


That, to me, is like someone saying that they are not going to buy another new vehicle until they see who Madonna's next husband or Paris Hilton's next boyfriend will be.

encore888

I wonder what the luxury car forecast is?

rominl

iTrader: (4)

i never said i am waiting for the next president though, did i? while i have my preference between the parties and candidates, my reasons for holding off are
1) economy is not stable yet in my eyes
2) prices are still dropping on cars we want. so why get them now?
3) we can do with one car now, it works out
4) gs350 is saving us gas money. whatever car we get next, not likely gas friendly

mmarshall

OK, Henry. I think we both cleared our points up.

Many prices, however, DO drop this time of year, especially on end-of model year 2008's. Most, if not all, dealerships are having clearance sales.

I'd be cautious of a 2008 that has been sitting on the lot for months, though. It's likely to have flat-spot tires, rusted brake rotors, dried-out seals, paint deformation spots from bird dirt, a sun-baked interior, or other problems.

spwolf

question is - how long will they fall? everyone turned down the production of unwanted vehicles and sooner than later, sales will be up because supply of the small cars will be up... and discount will be smaller, since nobody will be producing trucks anymore.

rominl

iTrader: (4)

good points, and god knows when it's the "best" time. but on cars that i am interested in (high performance), given the current economy and especially the effect of gas, they are taking such a big hit that even when the supply is getting less, they are still not selling

it's very obvious when they ask you to drive an m5 or e63, whereas a yr or two ago, you almost had to buy to drive. and you can hear the salesmen's tone as well, where now they are really eager to see how you want to work out a deal with them, rather than the attitude of i have the car, you come to me when you are ready.

Allen K

iTrader: (4)

So which car are you leaning towards?

spwolf

doesnt that make you smile?

I remember going to see S2000 when it was just out and f$$$$$s did not want to even open up the car for me, let alone talk about test drive :P

encore888

http://www.theautochannel.com/news/2...26/097678.html

bitkahuna

iTrader: (20)

You've got a loooooooooong wait if you want that first!

mmarshall

Back then, both Honda and its dealerships had holdover arrogance from their elite days of the 1980's, when they ruled the new-car-buisness. Things are somewhat different now, because Honda and Toyota now have real competition.