Friday, December 28, 2007

Car shopping

Something isn't adding up. I went car shopping for the wife and I've never seen so many good deals! Note: I bought in 1993, so I've seen car lots overflowing with inventory.

First, my 'real estate emotions' is the next article down. ;)

What I observed while car shopping:

1. Deals, deals deals! (2007 and 2008 models)
2. How empty the lots were.
3. How many 2007's are still on the lots
4. Cars/trucks of every type are in surplus.

I put in my name at AAA for a ~$50k Lexus GS350 and I've been hounded ever since then by the salesman. So far the offer is $4k below list. When is the last time a Lexus dealer started negotiations there? Today I went to a few dealers and was shocked to find $3k off on Hondas! Wow!

It wasn't like there was one or two cars we could be interested in. The salesmen would wave their hands over vast swaths of cars I had already ruled out by almost arbitrary guidelines (e.g., seat heaters).

I believe we already in a national recession. Car sales in December should prove interesting... More than one salesman commented on how 'gas prices were stopping all sales.' Gas prices? Or the end of MEW? ;)

Got popcorn?


bearmaster said...

Hi Neil,

In case you missed my response:

Car sales worst in 10 years

And if I don't talk to you again before 2008, Happy New Year!

Rob Dawg said...

Wait until you see the used car market. Unless you get a great deal on payments consider it.

wannabuy said...

Happy new year!

I missed your response on your blog (I was going back...).

We'll look at the used car market too. We just tend to buy new and keep them for 15 years. ;)

I have been watching used corvette, BMW, and other car prices. They are rapidly dropping. It does look like a liquidity crunch out there...

Got popcorn?

sandman said...

What deflation? ;)

tj & the bear said...

Ooooh, pretty! Giving any deals on that hot new "F" model?

We too prefer to buy new and keep a long time. You pay more up front, but you know exactly what you have.

bearmaster said...

Hi again Neil,

For fun I looked at Gardena Honda's used car prices online. While prices haven't increased, I wouldn't say they've been slashed dramatically. When somebody is offering to knock $3K off the price of a car I have to ask myself - is that because he jacked it up $3K before? Sort of like how asking prices on homes have been way up there then get cut back. Even with the cuts in home prices, homes still aren't a great deal.

Wouldn't it be nice if somebody charted car prices the way we chart housing prices and stocks.

Wishing you and the missus a great New Year, and I'll be looking forward to celebrating spring selling season with you all!

wannabuy said...

Wouldn't it be nice if somebody charted car prices the way we chart housing prices and stocks.
Normally one wouldn't see much... but I recall the 1990's and the WSJ had some interesting graphs...

We're going car shopping tomorrow. Partially as my father in law's 1990 Honda just lost its reverse gear. So if we can get a good dea on a car (end of month), we'll buy and give him the wife's old car. (Its UGLY but runs.) If not... no rush and he has to be very careful how he parks! ;)

We found the same car offered for a few thousand less online. So now we're 'armed' with new numbers. But recall, this is for cars where normally the negotiations are good if you get it for $500 over invoice at year end.

The car lots are so full its funny...

Happy new years everyone! Spring 'selling season' could be scary. Pending in San Diego are showing that 'closings' should be down 23% YOY in January+February per Jim the Realtor's lastest blog. In other words 2007 was to 2006 as 2008 is to 2007. ;)

Got popcorn?

JimAtLaw said...

Maybe it's time to go pick up that Vette at 0% financing and 10k under invoice! :D