We keep hearing over and over about the woes of the Big 3 but the Spies can tell you from our research, there is not even ONE car company executive that isn't SCARED TO DEATH about sales in the next 90 days to 6 months.
And it ISN'T about people NOT having the money or the ability to get financed.
Yes, those are issues but even the people who have cash or access to credit are just sitting on the sidelines for a number of reasons:
1. Prices are in the tank and people feel if they wait, things will get even cheaper. Why buy something now when you can wait for the most dismal auto news ever in January or February and get an even better deal on something?
2. Is it really the right thing to show up at work or your business in a brand new vehicle with people getting laid off left and right and uncertainty across the board?
3. People in general take action one way or the other based on hype...Just look at the election, stock market or real estate. If the media SAYS things are good and you should buy or vote a certain way, then people buy or vote one way or the other. But if they set a tone of uncertainty, doom and gloom, people retract or punish who is the reigning power in office.
4. Insert your favorite reason here __________________
So in essence, in my opinion, a LOT of this is PSYCHOLOGICAL.
I don't believe things are good but I don't believe that they are as bad as they say they are.
I also believe the pain is regional...Californian's aren't buying for lack of money or credit, but because the media has created this bad economic vibe.
So they see things suck in Detroit or wherever, so they sit on the sidelines.
Just look at the foreclosure sale frenzy...what's next, bus tours to dealers to buy virtually worthless inventory?
I personally have to take action and buy something before the end of the year for tax reasons and I'm going to take advantage of the IRS Section 179 deduction, while it's still available.
So my question for you all is...
Will you be buying ANY car in the next 90 days and if so why, or if not, why not?
We're VERY interested in your feelings on this subject.
And so are a lot of auto companies....