What happens when you rescue the auto industry?

What happens when you rescue the auto industry?

PostBy: lsayre On: Sat Sep 07, 2013 7:29 pm

Whereas the economy is still weak, with the average income (for those still employed) being down ~4.5% from 2007, and with unemployment at 7.4% (officially) to perhaps twice that (unofficially), and with housing prices still depressed.

Well, the price of a new vehicle in the USA just hit a record all time high, with the average passenger vehicle now costing its owner nary a tick less than $32,000. That's what you get.
lsayre
 
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Re: What happens when you rescue the auto industry?

PostBy: waldo lemieux On: Sat Sep 07, 2013 8:07 pm

The price of new autos ,and housing for that matter, is really tied to what banks are willing to lend. If a bank told a prospective owner that they needed a 20% downpayment over a three year term, youd see prices fall. Too, when the majority of women entered the workforce ,the banks started to allow both his/her income to be used for payment calculation, and the market soon absorbed that income . Today, try to get a mortgage with a one income household. The banks allowed us to mortgage ourselves into a pickle and some of them bet against us and made money when the loans went bad. :? We are so screwed. but enough about me ; how you doin!:what:
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Re: What happens when you rescue the auto industry?

PostBy: samhill On: Sat Sep 07, 2013 8:22 pm

With the low interest rates those that have buy & they buy the expensive models both foreign & domestic, there are more high end pickup trucks now than I have ever seen. The average age of an average American is also older when they have to replace it will be lower end models or used, the same goes with the Int. rates, as they increase the price people can afford will decrease, it's all relative.
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Re: What happens when you rescue the auto industry?

PostBy: jpete On: Sat Sep 07, 2013 8:27 pm

Anything to do with QE Infinity? More dollars chasing the same amount of goods always makes prices rise.

It's called "inflation". You know, the thing the Fed says we aren't experiencing?
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Re: What happens when you rescue the auto industry?

PostBy: grumpy On: Sat Sep 07, 2013 8:31 pm

My friend just spent 42K on a Chevy Impala , wow ...
grumpy
 

Re: What happens when you rescue the auto industry?

PostBy: lsayre On: Sat Sep 07, 2013 8:34 pm

I think the Ford Fusion comes in at about the average. It represents the median passenger vehicle. To get more than a Ford Fusion, you must pay more than the average. I think Fusions are poorly built cars at any price. A case where average is below average.

What percentage of passenger vehicles are being leased these days? (a practice that was virtually unheard of a few decades ago)

EDIT: Per Kelly Blue Book, a decked out (with all of the bells and whistles) 2013 Ford Fusion 'Titanium Edition' will top $38,000.
lsayre
 
Stoker Coal Boiler: AHS S130 Coal Gun
Coal Size/Type: Stockton Anthracite Pea
Other Heating: Resistance Boiler (13.5 KW)