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Discussion Starter #1
With the world stock markets in a tailspin overnight and today, this would cause a huge hiccup in consumer confidence. Lower consumer confidence hurts all auto manufacturers since autos are such big ticket items. If the markets continue to take a beating, watch for GM to start offering larger incentives on their model lineup. Add to that, gas prices have increased appx. 20%-30% in many parts of the country. And to make matters worse, Greenspan poked his head out of retirement yesterday indicating that the US more than likely go into recession by the end of 2007 or early 2008. And...yes...one more....add to that consumer savings is at it's lowest since the Great Depression.

So what am I getting at? If you are financially sound, perhaps now is NOT the best time to purchase a car. Perhaps waiting 6-12 months will present a much better buying opportunity.

To each their own.
 

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fenwah said:
And...yes...one more....add to that consumer savings is at it's lowest since the Great Depression.
and unfortunately the government hasn't changed the way they define or measure savings since then either so you have to take that number with a big "yeah but".


though I agree with you about a possible shift in deals, one thought would be to try not to make it a self fulfilling prophesy and get out there and spend now! ;)
 

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Consumer Confidence, a far more important gauge than the stock market IMO, is at a near all-time high.

Link: http://www.washingtonpost.com/wp-dyn/content/article/2007/02/27/AR2007022700507_pf.html

Bear Stearns automotive analysts are predicting a fairly poor month for the domestic auto makers in February.

Link: http://jalopnik.com/cars/news/bear-stearns-predicts-february-us-auto-sales-are-sucktastic-like-january-239974.php

Interest rates are still at near historic lows and the domestic stock markets are doing very well, with the Dow reaching all-time highs last week. (profit taking that drives down stock prices is a common after such highs)

These factors generally mean increased inventories and incentives, three factors that are good for the consumer.

Given that we are very confident in our personal financial situation, and make decisions like buying a new vehicle based on our own situation and not what the USA Today or other so-called media "experts" that are always "surprised" at good financial news have to say, I would say that now is an excellent time to put a new Acadia in our garage. ;D
 

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NOT: World stock markets taking a beating

I too don't think this is a bad time to be buying a new car. If you are financially solvent, then anytime is a good time to be buying a domestic car. If you are stretching the budget to figure out how you will make payments, then it is not a good time to buy a car. And if you are one of the people with savings "at an all time low", then please don't buy a new car, especially a $35k car.

I strongly disagree with the press reaction to this morning as the "market in a tailspin". A 1% drop in the Dow does not constitute a tailspin. If 1% is a tailspin, then why do they seeming ignore a 1.5% increase in the market as we have had multiple days over the past month or so? The Dow would be on the freaking moon after the week it had two weeks ago.

Likewise, unemployment is at or near all time lows, actually, it is below what I was tought in business school 20 years ago was the lowest possible of 5%. Don't worry about the low unemployment though, the new minimum wage bill will pop that right back over 5% in very short order.
 

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Re: NOT: World stock markets taking a beating

mitchl said:
If you are stretching the budget to figure out how you will make payments, then it is not a good time to buy a car. And if you are one of the people with savings "at an all time low", then please don't buy a new car, especially a $35k car. order.
Very sage advice. Definitely not the definition of "financially sound" if you are someone that is not already aware of this. ;D
 

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Re: NOT: World stock markets taking a beating

mitchl said:
"Likewise, unemployment is at or near all time lows, actually, it is below what I was tought in business school 20 years ago was the lowest possible of 5%. Don't worry about the low unemployment though, the new minimum wage bill will pop that right back over 5% in very short order."

I read two days ago that the unemployment rate for the college educated is at 2.1%
 

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Discussion Starter #7
My wife and I are more than financially sound. However, we are very frugal with our money. I love getting a good deal. I'm just stating that I believe that there will be better deals to be had if this market continues down this tailspin...and yes, this is a tailspin (Dow -400 points / Nasdaq -90 points)...granted, it's just one day and investors are only human.

I remain on the fence on purchasing a new car. I have a 98 Grand Prix that is rusting like crazy. I'm hoping that there will be no more snow this winter so that my car saves some steel.
 

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Fenwah- Well it ended a lot worse than it was this morning! 400 pts is significant to be sure. Hopefully it will be a drop to make some room for the climb to 13,000.

I was not suggesting that you were not financially stable, but while I suggest that anyone who is it is still a good time for a new (domestic) car-- I also am alarmed by those putting too much into a new car when they are not stable.

A woman I work with just had trouble qualifying for the loan for a BMW SUV, so she went out and found a cosigner. She has a good, stable job, for a good stable company, probably makes in the $60-70k range, and at 28 has decided that she needs a new BMW. When you cannot find a bank to lend you money at whatever their low standards for qualification are, then you need to seriously reconsider your need for a new car, especially one costing more than about $20k.
 

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Uh oh..better incentives next month?

All 30 stocks in the Dow were lower, along with nearly every stock in the S&P 500. General Motors (GM, news, msgs) was the Dow's biggest loser, down nearly 5.7% to $32.05.
 

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Discussion Starter #10
mitchl said:
Fenwah- Well it ended a lot worse than it was this morning! 400 pts is significant to be sure. Hopefully it will be a drop to make some room for the climb to 13,000.

I was not suggesting that you were not financially stable, but while I suggest that anyone who is it is still a good time for a new (domestic) car-- I also am alarmed by those putting too much into a new car when they are not stable.

A woman I work with just had trouble qualifying for the loan for a BMW SUV, so she went out and found a cosigner. She has a good, stable job, for a good stable company, probably makes in the $60-70k range, and at 28 has decided that she needs a new BMW. When you cannot find a bank to lend you money at whatever their low standards for qualification are, then you need to seriously reconsider your need for a new car, especially one costing more than about $20k.
There are people out there that are in debt up to their eyeballs...but still purchase new cars. One only needs to go to www.prosper.com and see these poor desperate people who can't get loans anywhere else. I've loaned money to appx. 20 people now on that site...not much...maybe $5000 total. It's a nice diversification in my investment portfolio that offers a pretty nice return.

How long can people keep accumulating all this debt? I would think one of the first things to go when trying to cut down on debt is the purchase of a new car. I guess that is where I'm going with this. The markets having a crappy day will play on people's minds in the future when it comes time to purchase big ticket items. My goal is to time this car buying so that I get the best possible price. And in my opinion, waiting (if you can) is probably the best option right now.

Now the market could shoot right back up tomorrow and everyone would be back in euphoria again. However, you have so much negative news coming out (housing sector not rebounding as quickly as once thought, Greenspan yapping about a recession, etc)...you just have to believe that people might actually start thinking rationally for once about their money and maybe...just maybe start cutting back on things. But this is America...charge everything and worry about it tomorrow. ::)
 

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I'm a girl that wants what I want, when I want it. I can't wait on the world to change. I'm buying mine now and can't wait! Congratulations to those with enough patience and time to see what the market may or may not do.
 

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Amen to that GaGirl
 
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