Do You Want A New Car?

Wait. When the 2010 models roll out, the 2009 models will still be sitting, unsold, all over the world. The deals will make you do a double-take, just you wait and see. We're already seeing 1/4 to 1/3 off MSRP. I think you'll be seeing cars selling at 1/2MSRP but I don't have anything to back that up except my instincts. That, plus there are a few cars the manufacturers will want to get rid of.


Like at Nissan. They are laying people off who used to make cars, and storing cars on the test track.


Toyota is storing 150 acres of this:


Other examples from around the world:

In Newark


In Northamptonshire


This is what you may have heard called "oversupply" or "excess capacity." People are not buying cars anymore, because they can't get 125% financing on the new house they were getting a 3-year ARM on, and they can hardly make payments on the freshly-adjusted ARM they have now. When you make a series of bad financial decisions, you end up broke. That's what happened to a lot of people. Broke is a lifestyle, and when you depend for your livelihood on people who would be broke save for foolish lenders, you are sitting on a bubble.

The bubble has burst.

If you have the credit or cash to get a new car, wait a few more months. The deals will be eye-popping.

Hold on there.

Why?

Because every year, every car seller must pay taxes on unsold inventory. They would rather take a loss that can be written off, than to pay taxes on the inventory. That means you will be buying cars from EVERYBODY for less than it cost to make them. This is going to be a once-in-a-lifetime buying opportunity.

By the way, here's another prediction: The small increase in the number of cars sold in the second half of the year will do nothing for the worsening economy in (insert your country's name here) but in America the mass media outlets will give Obama credit for "turning the economy around" when the numbers of cars sold takes a slight uptick. Remember you heard it here first, and don't be surprised that unicorns don't start giving out rainbows after a few more cars sell this year.

(sources and more information for you: Mish and The Guardian.