If the economy is humming along just fine as Wall Street seems to think...

[WCGreen]

How come they are still advertising deals on 2007 cars when the 2008 models have been out since late August...

I remember when I was young that my folks and other relatives would always wait until late summer to buy a new car because the dealers had to move out the inventory to make room for the new models...

I hate to say this, but I feel bad for the dealers since they are stuck between a rock and a hard place and are forced to literally give cars away from their perspective...

They then have to pay commissions on the sale...

They make their money on the trade ins and service centers...

But with the shoddy reputation car dealership service departments have, I think only republican congressmen rank lower in personal preference, the money just doesn't seem to be there...

All I know is the 2007's aren't selling...

What makes them think the 2008's will sell any better...

[dmallind]

1. There's always model year change churn in car sales

And overall 2007 is far from a bad year. 2006 was much worse. Actually the prices for 07s - both sticker and actual transactional - have gone up a bit this year, as well as the volume.

[Deja Q]

2. Or why they expect another fed cut when the current cut caused the unrest leading to more drops!

They claim a weak dollar is why people keep selling. Another fed cut will simply weaken the dollar more.

This is supply side economics?

[catmandu57]

3. Wall street and the economy are seperate things

Wall street is a big casino, the economy is what affects all of us.

[pscot]

4. Sympathy for car dealers?

Who'se next? Lawyers, racetrack touts, mob hitmen?

[mark414]

5. the economy is fine for Wall Street

it is not so good for the rest of us

[Snarkoleptic]

6. From my perspective, housing and mortgages will be a drag on the economy ...

for at least another 18-24 months.
If you have a credit score below 640, good luck getting a loan.
Wall Street opened the mortgage floodgates and is now scapegoating the mortgage brokers.
Mortgage brokers can only sell (and get away with) what Wall Street will let them get away with.
Housing has long been considered one of the major pillars of the economy...now is holding the economy back.
So long as the housing sector is in a recession, consumer spending (2/3 of GDP) is going to be weak.
It certainly looks a lot like war on the middle class.