Quote:
Originally Posted by cjwolverine  Supply and Demand is the easiest equation around and yet the largest company in the world can't get a handle on it. We either don't want to buy your cars, can't afford to buy your cars, or want to buy your cars at a lower cost. Any way you slice it, you have made too many cars for us to absorb. Too many people are working at a wage far exceding the value they are adding to the car, and too many executives are flying in jets the company can't afford.
cj |
You forgot one thing, and that's low resale value for existing customers. Many folks would love to be customer, but the past practices at the domestics (fire sales, overproduction, strikes, perceived quality, or whatever else) have done major damage to GM's resale values. How many times can folks step up to the window to buy when resale of what they have is 30-40% of MSRP in 3-4 years. I'd guess cash buyers and those not upside down in loans have a hard time eating that after a couple of cars. That may be ok for cars that cost $15k, but even fat cats stomachs must wrench when they sign for a $70k car thinking by the time they trade it they may get $30k.
Not to say GM is alone in this boat, as plenty of other high to mid-end cars resales have tanked recently. Leasing was one way to gloss this over, but leasing has lost its luster as well. Now tack on higher financing costs (if you can get financing), and the days where high end cars could be had for those who aren't fat cats (cash in hand) seen to be fading fast.
These kinds of worries were on peoples' minds before the media blitz on the potential demise of GM. Its no wonder that folks answer negatively to surveys about bankruptcy and car buying/value.
I myself really want a V again, but $10,000 a year depreciation + financing has me concerned. I realize this is no XLR-V, but some folks clearly lost more than their shirts on that car. While plenty of folks probably already like the buzz around this car enough to pick it over an M3, I wonder how many think its resale will hold up as well (outside of this board, of course).
I'm sure more than a few guys on here want it now, but are waiting it out to see the answers to many of the questions being raised. For those keeping it forever, I guess its not a problem, but how many guys said they were keeping their last CTS-V forever, I'd guess quite a few have changed their tune (as folks always do).
Brian R.