What Will It Take To Get You Into a New Car Today?
So, Washington recently announced a 17.4 billion dollar bailout for the auto industry.
Now what?
What will it take to get people back into the dealership to buy a new or certified used car?
The way I see it, giving the automakers a loan is merely putting a band-aid on the problem and keeping them alive for just a few more months. If consumers don’t have the money to spend, what good does it do? With the downturn of the economy, companies going belly-up and hundreds of thousands of people losing their jobs, there’s simply no money to circulate many people are hanging on to their paychecks and saving instead of spending. If this holiday shopping season is any indication, people are truly feeling the pinch and saving all the money they can; they want steep discounts, better deals and more bang for their hard-earned buck, and retailers are feeling the pressure, offering discounts and promotions to entice spending, but since most of the auto manufacturers are dropping discounts and scaling back on incentives, exactly where does that leave the consumer?
It’s also much more difficult to qualify for a loan today than it was say, two years ago, and chances are that vehicle leases may be harder to get.
Is a stimulus package the answer a direct IV straight into the economy to jump start the auto industry? Should the government offer a tax credit or some sort of deduction on the purchase of a new vehicle? On the other hand, should we have the advantage of a stimulus package or some other form to encourage spending, would that not simply keep us all in the red?
Just yesterday, Toyota announced it expects to lose roughly $1.5 billion to $1.7 billion through 2009, while Honda, which has reduced estimate earnings for 2009, stated there was simply “no prospect for recovery” due to declining auto sales and the deteriorating economy.
While Chrysler and General Motors both received the bailout, the consumers certainly did not. We are strapped with the enormous fail of Wall Street, mom and pop stores don’t stand a chance and even large retail establishments like Office Depot are closing its doors or at best, floundering to stay afloat in a sea of uncertainty.
So, Cars for Girls readers: What would it take to get you into a new car today?
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A personal bailout. However, I got myself into this mess, so I’m going to get myself out of it. My car is 10 years old with almost 130,000 miles on it; I’m just hoping it hangs in a while longer. Plus, I really like my Mustang and I don’t know when (if ever) I’ll be able to afford a new one. Sure would like to have one of the 2010s when they come out, though.
A car accident. I was driving a Chevy Malibu and got rear ended on the highway by a silly, dumb bigfoot in a Dodge Ram that wasn’t paying attention to the traffic jam ahead. My car had 180,000 miles and I certainly would have probably run that car far past 200,000. It was a well kept car. But because of that, now my fiance and I are in the market to purchase something new.
We’re only looking for a new car as opposed to a used because we’ve left frustrated at all the used ones we’ve seen, the used car owners don’t want to budge their prices because they’re so cash strapped in the first place and want to sell at the highest, firmest price they first offer up. That and so many used car owners don’t seem to take care of their cars as much as I thought they would. They tout their amazing radio with six subwoofers, heated seats, DVD, GPS 4WD, and other luxuries but when you look under the hood, you can tell that it needs a major overhaul – I test drove a used Volvo and the check engine light came on while I was test driving, the guy said it was nothing but an emissions problem, then a sound came from the car that I could tell was definitely an engine problem…come on!!!!
So now we’re in the market to buy a new car and that’s how I stumbled upon this website. Buying an American-made car right now makes me nervous, doesn’t mean I am not open to them, I loved my Malibu and I put alot of work into it, but I know that research is key to new car shopping. I’ve been looking at Hyundai, Volkswagen, Audi and Mazda, and I’ve been reading the Cars for Girls PDF book. If anyone has any suggestions of a car I should look into that you are in love with, I’d love to hear your opinion.
Hi Carissa: I’m with you – a personal bailout would be great, wouldn’t it?
Hi Gia: I’m so sorry to hear about your accident and I agree with your thoughts on the used car market – it certainly doesn’t seem to be what it used to be. You’re right to pass up any vehicle that doesn’t meet your expectations and I’m glad to know your doing your research, too.
Most Cars for Girls readers know how much I love my Nissan Altima, but it’s not new. I checked out Consumer Reports before I bought it to make sure it received above average ratings for that year (and it did!), so I can’t give you any advice on the new Altima’s, but maybe check ‘em out while you’re out looking. The Toyota’s always seem to have a good customer satisfaction rating, as well.
Hopefully other readers will stop by and make suggestions, too,