Detroit Free Press: Vehicle transaction prices continue falling

Discussion in 'General Motoring' started by johngdole, Oct 29, 2008.

  1. johngdole

    johngdole Guest

    I hope nobody is paying full sticker for the average ride:

    New vehicle transaction prices in the United States declined for the
    10th consecutive month in October -- after 44 months of increases from
    May 2004 to December 2007.

    The Power Information Network, a subsidiary of J.D. Power and
    Associates, on Monday reported the finding in its industry newsletter,
    PIN Insights.

    The industrywide decline means that automakers are bringing in less
    revenue and are likely to be less profitable when they report third-
    quarter earnings.

    "They have to reduce costs as quickly as they can to minimize this,"
    Tom Libby, senior director of industry analysis at PIN, told the Free

    "It's a serious situation," he said. "It does have enormous

    PIN attributes the decline largely to the soft environment: tight
    credit, low consumer confidence and relatively high gas prices. U.S.
    vehicle sales are down 12.8%, or 1.6 million vehicles, through
    September, compared with the same period in 2007. However, the market
    shift from large SUVs and other trucks to less-expensive, fuel-
    efficient small cars is also a factor.

    Worse yet, the decline in average transaction prices has been
    accelerating throughout the year. In the first three months of 2008,
    average transaction prices declined by less than 1.5%.

    From May through September, year-over-year price declines exceeded 4%.

    But from Oct. 1-19, the price drop reached a near-term record of 7.7%.

    Libby called the news a double whammy for the already-suffering
    johngdole, Oct 29, 2008
  2. johngdole

    Dillon Pyron Guest

    Thus spake :
    If we're talking about Detroit, aren't we talking about the idiots who
    thought that they could build something that got 21 mpg highway
    Dillon Pyron, Oct 29, 2008
  3. johngdole

    SMS Guest

    It's rather amazing how cheap new Toyotas have become. We paid a bit
    under $17K for a Camry LE 12 years ago. Now I can buy a 2009 Camry LE
    for $17.5K, and the new vehicle has a bigger engine, better fuel
    economy, and a lot more safety features like ABS, TPMS, and a bunch of
    air bags as standard equipment.
    SMS, Oct 29, 2008
  4. johngdole

    SMS Guest

    Yes, the 92-96 generation was at the peak of quality and design. They
    started decontenting the base car while adding bells and whistles.
    SMS, Oct 30, 2008
  5. johngdole

    Leftie Guest

    It should console you that your Camry was better built and probably

    We have a '95 Camry wagon that cost $24k new. Yikes. We bought if
    for $3995 a couple of years ago.
    Leftie, Oct 30, 2008
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