RichardJensen Posted November 9, 2016 Share Posted November 9, 2016 (edited) I understand why people are taking out longer term loans. But that doesn't change the fact that doing so lengthens the amount of time before a sensible buyer re-enters the market. Edited November 9, 2016 by RichardJensen Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted November 9, 2016 Share Posted November 9, 2016 I understand why people are taking out longer term loans. But that doesn't change the fact that doing so lengthens the amount of time before a sensible buyer re-enters the market. Well its the automakers screwing themselves to a point...they have to be profitable, which means they have to have more expensive products. Ultimately it boils down to the lack of real income growth over the past 30 years or so. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted November 9, 2016 Share Posted November 9, 2016 Well its the automakers screwing themselves to a point...they have to be profitable, which means they have to have more expensive products. Ultimately it boils down to the lack of real income growth over the past 30 years or so. Well, that and the increasing complexity/equipment level/durability of cars. I think--can't recall where I read this--but the DOL has not included 100% of the price increase of cars in their CPI because of how much more stuff is included, etc. Quote Link to comment Share on other sites More sharing options...
rperez817 Posted November 10, 2016 Share Posted November 10, 2016 Well, that and the increasing complexity/equipment level/durability of cars. I think--can't recall where I read this--but the DOL has not included 100% of the price increase of cars in their CPI because of how much more stuff is included, etc. A Wall Street Journal article from a few years back mentioned that "CPI overestimates inflation by underestimating the value of improvements in product quality and variety." http://www.wsj.com/articles/SB10001424127887323468604578249723138161566 My '17 Jaguar XF 20d is not only a better car than any Jaguar sedan from 20 years ago, but it costs less too (using 2016 dollars for both). Quote Link to comment Share on other sites More sharing options...
bzcat Posted November 10, 2016 Share Posted November 10, 2016 (edited) BMW suffered it biggest drop with its most popular model, the 3 series was just 5,211 sales last month down from 11,012 same time last year, that's a 52% drop and close on 6,000 car sales lost in a single month, very hard to compensate when buyers are just walking away and buying other products, the X series utilities were up slightly but nowhere near enough to compensate.... BMW are in a world of hurt. Link to BMW sales release I wouldn't say buyers are walking away buying other products. Basically, BMW has decided to not chase the marginal sales. Traditionally, BMW begin aggressively marking up new model year residuals right around this time to pump volume but they have held back this year. The sales decline of the 3 series can be interpreted the same way as Ford's decline... they've decided to not ply additional incentive now because they are forecasting a down (ahem "volatile") market ahead. Batting down the hatches to prepare for a long winter so to speak. Edited November 10, 2016 by bzcat Quote Link to comment Share on other sites More sharing options...
630land Posted November 14, 2016 Share Posted November 14, 2016 (edited) When Ford's cars sell low, some go into 'panic mode' demanding "all new car designs now". But, BMW 3 series slows down means that is not the case. Edited November 14, 2016 by 630land Quote Link to comment Share on other sites More sharing options...
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