What if the price of a car was ...... 0 down....$100 month 0 down....$150 month $200 down...$100 month etc...etc.... Everybody who wants one .....gets one.... 10% gets one.... 20% gets one...etc....etc... etc...etc... Would the auto industry still be having sales problems ? At $150..$75..$35.. oil ? ....................................................................... The auto problem......same as the house problem... .................................................................... At some price it works.... At some price it does not work......
Only problem with that, is that GM and F cars are usually at least 30k. $100 dollars per month and at 0% interest, would take 25 years to pay that car off. $150 per month still takes 16 years to pay the car off.
Exactly............ The politicians need to be properly briefed on what really is possible.... ie define what is currently available.....then make it work.... Firstly.....for what is possible.....the $30,000 is no longer an option....$15,000 marks the possiblity..... Thus GM has to make the changes in order to make $15,000 possible.....because that is what the buy side can do.... The sell side and the buy side have to match up.... Any policy that depends on the $30,000 is failed from the start.... Both sides of the equation have to be served....
Make Detroit a TIF zone. Give investors zero capitiol gains taxes for any investment in the big 3. Make it a 25 year tax free window.
In 1968 a brand new car was about 2,850$ average. Income was $7,850 per year. So that means that means a car costs about 35% of your yearly income. Average yearly income today is about 50k. So that means that cars should average about $17,500. On another note, in 1968 the average home cost about $14,950. So the average home should cost 95,000. Rent was 130$ per month, so rent today should cost 833$ per month. Gas was 34 cents per gallon, so today Gas should be $2.16(got a winner on this one as we pay less!) So basically we need prices to be at what i just said, if you want to have the same standard of living as someone in 1968. So it seems our biggest problem in America is that house prices are too high and car prices also. Everything else seems to be on track, just those damn big ticket items are making us poor. Worst thing is we pay too much money to them, and they STILL cant turn a profit! Banks! Automakers! WTF?
If you seriously believe that 'everything is on track' in America except for house and US-made car prices being too high, you need to have your head examined. Oh wait, we already determined that you need to have your head examined. http://www.elitetrader.com/vb/showthread.php?s=&threadid=147360
It is ironic that car prices are so high respect to what they should be to match what peilthetraveler and yet they are getting money from the taxpayers who have to pay such high amounts for a car. It is also, even more ironic that homes prices are so high and still people was trying to get second and third homes causing the financial shakedown.
Then was then....now is now.... Having to show some marbles....changed their game.... Overnight....and still doing it.....downward in a big way.... As if a dam burst....