From the monthly archives: July, 2011

We are pleased to present below all posts archived in 'July, 2011'. If you still can't find what you are looking for, try using the search box.

The Debt Ceiling

The negative impact from the debt ceiling debate on automotive sales may be significant even if the government decides to raise the ceiling by August 2nd, which in all likelihood will occur. The political posturing on this event may bring about some clarity on how we handle our budget deficit; however a negative short-term impact on consumer confidence will surely occur.  This situation comes on the heels of very disappointing employment numbers. Job creation only reached 18,000 jobs in June, well below the 150,000 needed to lower the unemployment rate. This alone surely wi ...

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Used Prices on Small Cars Decline from June Peak

Used prices are declining from their peak in June and are expected to continue this trend through the remainder of the year.  The overall used market is expected to experience overall depreciation of 3.7% which dramatically outperforms normal depreciation which averaged about XX% during the past five years.  Compact cars to continue to outpace the market and even with the anticipated declines in value most vehicles are still enjoying strong year to date gains.  Prices for the overall segment, shown above, are 10.2% above the prices paid in January. On a model level basis ...

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Small Car Prices Begin their Descent

It’s funny that $3.50 is a welcome sign of lower gas prices when at one time the industry talked about $3.00 gas as a tipping point for truck and SUV demand.  The decline in gas prices has been dramatic, falling from a high of $3.99 in May; however consumers are still paying over $.80 more per gallon compared to last year’s prices.  With the new perception that gas prices at or above $3.00 is an acceptable price, are we now in a situation where demand for small cars will continue to be strong, and consequently the used prices will remain well above historical levels?  The dramat ...

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