Current New Vehicle Market

[1995COBRA-R]

Watch here. The owner of a Tesla found his new replacement batteries will be $23,500.

So, he blew up the piece of junk. Use fast forward.
Blow it up

Good ending after 7:00

 

[Weather Man]

Auto sales are falling in the U.S. but profits are soaring​

TSLA +1.58%Mar. 23, 2022 12:06 PM ET12 Comments
Retail automobile sales in the U.S. are forecast to fall 27.8% in March to 1,044,464 units, according to a forecast from J.D. Power. New-vehicle total sales in Q1 are projected to fall 18.4% from last year's level to 3,228,000 units amid the tight supply due to the supply chain, COVID and Ukraine-Russia war issues that have held back production.
J.D. Power's breakdown: "Typically, March is a high-volume sales month with elevated promotional activity because it marks the end of the fiscal year for some manufacturers and the close of the first quarter for others. In March 2021, consumers purchased almost 1.4 million new vehicles at retail. This year, with fewer than 900,000 units in inventory, it will be impossible for the sale pace to even approach last year’s level. Given the strong demand and extremely constrained inventory situation, it should be no surprise that manufacturer discounts are at their lowest level ever, while prices and profitability set records for the month of March."
Profitability is holding up in the sector. Incentive spending by manufacturers per vehicle is trending toward an all-time low of 2.3% of MSRP and is tracking to be down 68% from the level of last year. Also, the average transaction price is expected to be up 18% to $44,129. Total retailer profit per unit - inclusive of grosses and finance and insurance income - is on pace to reach $4,931 in March, an increase of $2,656 from a year ago. For Q1, aggregated retailer profit from new vehicle sales is projected to reach $14.2B, which is noted by J.D. Power to be an "astounding" 95% increase from Q1 of 2021.

 

[13COBRA]

Auto sales are falling in the U.S. but profits are soaring​

TSLA +1.58%Mar. 23, 2022 12:06 PM ET12 Comments
Retail automobile sales in the U.S. are forecast to fall 27.8% in March to 1,044,464 units, according to a forecast from J.D. Power. New-vehicle total sales in Q1 are projected to fall 18.4% from last year's level to 3,228,000 units amid the tight supply due to the supply chain, COVID and Ukraine-Russia war issues that have held back production.
J.D. Power's breakdown: "Typically, March is a high-volume sales month with elevated promotional activity because it marks the end of the fiscal year for some manufacturers and the close of the first quarter for others. In March 2021, consumers purchased almost 1.4 million new vehicles at retail. This year, with fewer than 900,000 units in inventory, it will be impossible for the sale pace to even approach last year’s level. Given the strong demand and extremely constrained inventory situation, it should be no surprise that manufacturer discounts are at their lowest level ever, while prices and profitability set records for the month of March."
Profitability is holding up in the sector. Incentive spending by manufacturers per vehicle is trending toward an all-time low of 2.3% of MSRP and is tracking to be down 68% from the level of last year. Also, the average transaction price is expected to be up 18% to $44,129. Total retailer profit per unit - inclusive of grosses and finance and insurance income - is on pace to reach $4,931 in March, an increase of $2,656 from a year ago. For Q1, aggregated retailer profit from new vehicle sales is projected to reach $14.2B, which is noted by J.D. Power to be an "astounding" 95% increase from Q1 of 2021.

Man, I'm doing something wrong. Definitely not getting a 95% increase in profits haha

Alright, no more SVTP discounts.

 

[Weather Man]

Man, I'm doing something wrong. Definitely not getting a 95% increase in profits haha

Alright, no more SVTP discounts.

That was in the heart of the lockdowns

 

[13COBRA]

That was in the heart of the lockdowns

Right. We're talking the same comparison.

 

[q6543]

It's gonna go down eerily similar to the 08 housing market.
10x easier to walk away from a car.

 

[13COBRA]

It's gonna go down eerily similar to the 08 housing market.
10x easier to walk away from a car.View attachment 1743148

Yes , and no.

 

[gimmie11s]

It's gonna go down eerily similar to the 08 housing market.
10x easier to walk away from a car.View attachment 1743148

Y'all trippin! Mah payment is only $650! (for 96 months).

 

[13COBRA]

Y'all trippin! Mah payment is only $650! (for 96 months).

People like that aren't the 'norm' by any means...but there are definitely a lot of them out there haha

 

[BlueSnake01]

Y'all trippin! Mah payment is only $650! (for 96 months).

With a 10k downpayment on an MSRP of 35k I bet, sounds like a bargain!

 

[tones_RS3]

It's gonna go down eerily similar to the 08 housing market.
10x easier to walk away from a car.View attachment 1743148

I hope not.

That was terrible. Lots of people lost a lot of personal stuff and jobs. Lasted like 2 years as well. Absolutely terrible.

 

[gimmie11s]

Recession by Q4 this year. Interest rates going to bend over buyers to the extent that 50% of the buying demographic won't be able to buy.

Housing rates getting ready to be over 6% ballooning the price of housing forcing people to rent, again ballooning rental prices.

All of this will allow the supply chain to adjust and "catch up" because folks won't be buying shit they don't need.

Times a changin, boys. keep your cash and be ready to pounce!

 

[13COBRA]

Recession by Q4 this year. Interest rates going to bend over buyers to the extent that 50% of the buying demographic won't be able to buy.

Housing rates getting ready to be over 6% ballooning the price of housing forcing people to rent, again ballooning rental prices.

All of this will allow the supply chain to adjust and "catch up" because folks won't be buying shit they don't need.

Times a changin, boys. keep your cash and be ready to pounce!

I think Q3 or Q4 of next year.

 

[tones_RS3]

Recession by Q4 this year. Interest rates going to bend over buyers to the extent that 50% of the buying demographic won't be able to buy.

Housing rates getting ready to be over 6% ballooning the price of housing forcing people to rent, again ballooning rental prices.

All of this will allow the supply chain to adjust and "catch up" because folks won't be buying shit they don't need.

Times a changin, boys. keep your cash and be ready to pounce!

I think Q3 or Q4 of next year.

I'm thinking Q4 this year or Q1 next year.

 

[13COBRA]

Only reason I'm pushing it further...the current administration has shown that they will die trying to prop it up.

 

[gimmie11s]

I think Q3 or Q4 of next year.

I hope not... I just want it here to get the correction done and over with... get back to some sort of normalcy.

The longer we (they) artificially put it off, the longer the middle class suffers.

Word is 5-6 MORE rate hikes this year alone.

 

[gimmie11s]

Only reason I'm pushing it further...the current administration has shown that they will die trying to prop it up.

Totally agree with that.

 

[13COBRA]

Totally agree with that.

I agree with your post #616 too.

I just don't see this administration stopping the faucet. I think they'll carry it as long as they can, knowing the red wave is coming in November...then over the next two years as the bottom falls out, it will be the Republican's fault.

 

[jpro]

I agree with your post #616 too.

I just don't see this administration stopping the faucet. I think they'll carry it as long as they can, knowing the red wave is coming in November...then over the next two years as the bottom falls out, it will be the Republican's fault.

You're wrong. Its not like this Administration is talking about sending checks to auto owners because gas prices are so high. Oh...wait...

 

[me32]

People like that aren't the 'norm' by any means...but there are definitely a lot of them out there haha

Recession by Q4 this year. Interest rates going to bend over buyers to the extent that 50% of the buying demographic won't be able to buy.

Housing rates getting ready to be over 6% ballooning the price of housing forcing people to rent, again ballooning rental prices.

All of this will allow the supply chain to adjust and "catch up" because folks won't be buying shit they don't need.

Times a changin, boys. keep your cash and be ready to pounce!

Yup, bring it on