Detroit Free Press: Vehicle transaction prices continue falling

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Old 28 Oct 2008, 09:18 pm   #1 (permalink)
johngdole@hotmail.com
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Default Detroit Free Press: Vehicle transaction prices continue falling

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

http://www.freep.com/article/2008102...810280376/1014

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
Press.

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

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
automakers.
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Old 28 Oct 2008, 10:02 pm   #2 (permalink)
Dillon Pyron
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Default Re: Detroit Free Press: Vehicle transaction prices continue falling

Thus spake johngdole@hotmail.com :

>I hope nobody is paying full sticker for the average ride:
>
>http://www.freep.com/article/2008102...810280376/1014
>
>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
>Press.
>
>"It's a serious situation," he said. "It does have enormous
>implications."
>
>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
>automakers.


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
forever?
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Old 29 Oct 2008, 06:51 pm   #3 (permalink)
SMS
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Default Re: Detroit Free Press: Vehicle transaction prices continue falling

johngdole@hotmail.com wrote:
> I hope nobody is paying full sticker for the average ride:
>
> http://www.freep.com/article/2008102...810280376/1014
>
> 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.


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.
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Old 30 Oct 2008, 09:55 am   #4 (permalink)
SMS
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Default Re: Detroit Free Press: Vehicle transaction prices continue falling

Leftie wrote:
> SMS wrote:
>> johngdole@hotmail.com wrote:
>>> I hope nobody is paying full sticker for the average ride:
>>>
>>> http://www.freep.com/article/2008102...810280376/1014
>>>
>>> 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.

>>
>> 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.

>
>
> It should console you that your Camry was better built and probably
> longer-lived.


Yes, the 92-96 generation was at the peak of quality and design. They
started decontenting the base car while adding bells and whistles.
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Old 30 Oct 2008, 10:11 am   #5 (permalink)
Leftie
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Default Re: Detroit Free Press: Vehicle transaction prices continue falling

SMS wrote:
> johngdole@hotmail.com wrote:
>> I hope nobody is paying full sticker for the average ride:
>>
>> http://www.freep.com/article/2008102...810280376/1014
>>
>> 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.

>
> 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.



It should console you that your Camry was better built and probably
longer-lived.

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