As fuel prices plunge, car supply surges

[DainBramaged]

While light-truck supplies have stabilized, cars now are piling up on dealership lots — reversing the short-supply situation of just three months ago.

Sales of cars soared when fuel prices spiked — then plunged as the economy tanked and prices fell at the pump
On Sept. 1, car stocks totaled 1.17 million units, a 49-day supply. But by Dec. 1, the inventory had climbed by more than half a million units.

And the sales rate is much lower now than it was then. So the 1.69 million cars now at dealerships, factory lots, ports and in transit would take 113 days to sell. U.S. automakers and dealers prefer a supply of 60 to 65 days.

Over the same three-month period, light-truck stocks fell by 50,300 units to 1.59 million. That's because automakers trimmed light-truck production earlier than car production.

After boosting car output in the spring and summer to meet the surge in demand, automakers got hammered by the abrupt change in buying patterns.

American Honda's car inventory soared 88.8 percent to 185,000 units from Sept. 1 to Dec. 1. Honda's days supply for cars skyrocketed to 102 days, from 30.

The industry's overall inventory stood at 3.28 million units on Dec. 1, up 462,200 from Sept. 1. That's equivalent to a 110-day supply at the current selling rate, compared with 61 days three months ago.

http://www.autonews.com/article/20081215/ANA06/812150343/1197 (subscription only)

[RB TexLa]

1. Why does no one ever mention the money people are saving by not buying a new car

We have a huge problem with the rate of savings in North America.

[madinmaryland]

4. Good point. Cars are made well enough these days, that unless you drive 80K a year,

you should be able to run your car for 5-8 years easily. Buying a car every two to three years is a collosal waste of material and energy.

[DesertFlower]

5. i drove my 1997 toyotal corrolla

for 8 years and sold it for $4500. i'm sure it's still on the road. my husband's car is a 2001 with over 100,000 miles.

my friend drives a 1987 honda civic with 125,000 miles on it. my friend drove her 1986 nissan for 16 years. she had 316,000 miles on it. when she traded it they gave her $300.

[RB TexLa]

7. My two vehicles each have over 180,000 and my wife's has around 140,000

No way I'm giving them my money for a new one until these completely die.

[oldnslo]

10. My 2001 Toyota Sienna has 123k on it

And is still as new feeling and tight as it was when new.

ANYBODY NOTICE SO FAR THAT WE'RE TALKING ABOUT "FOREIGN" BRANDS HERE?

[RB TexLa]

11. One of mine is foreign one is North American.

Isuzu and Pontiac.

[DesertFlower]

6. yes. we do.

everyone should have at least 6 months salary in the bank.

[T Wolf]

2. The question is, are Americans stupid enough to now go back to gas-guzzling SUVs? I betcha they are

Remember, our national attention span is about two hours.

[DainBramaged]

3. They are, it is hard to convince the lemmings that everything is temporary

[taterguy]

8. Are they dumb enough to set up their lives so they rely on gas-powered vehicles in the first place?

You betcha!

[DainBramaged]

9. BOING BOING BOING

nothingness, a lonely place

[taterguy]

12. So what are reasonable transportation choices?

My definition of a reasonable transportation choice is for people to make the same decisions that I make.

What's yours?

[DainBramaged]

13. I have no clue what decisions you make, nice bait and switch.

I guess your sense of humor is lacking today, how about I just delete the previous reference and let you think about responding to nothing?

[taterguy]

14. I live close enough to places I need to go so a car is optional

That's the general theory at least, with exceptions for truly wretched weather and when I want to vacation in an isolated spot.

And I admit that the older I get, the more exceptions I have.

[DainBramaged]

16. I and most people like myself don't have that option

what's good for you isn't good for me. Sorry I don't meet your expectations.

[taterguy]

18. It is hard to convince the lemmings that everything is temporary

[DainBramaged]

20. (sigh) Whatever.

[taterguy]

23. .. . and ever, amen

http://www.youtube.com/watch?v=M7-jiEbWUUc

[DainBramaged]

24. ...........................

[taterguy]

25. Despite your indifference the question remains

Why is owning an SUV unacceptable when other lifestyle choices waste just as much fuel?

[Better Believe It]

19. What's wrong with SUV's or pick-ups? You don't like theml, don't buy one

But don't try to impose on others your personal preferences.

If you drive a non-electric car you burn gas! You're also responsible for the pollution so don't be a hypocrite, buy a bicycle or walk!

I don't own a SUV, but I just might buy one that gets decent mileage.

And if you don't like that tough shit!

[taterguy]

21. Global warming? Oil wars? Giving money to people that want to destroy us?

Other than that, there's nothing wrong at all with SUVs.

No one is pure, but that doesn't stop people from letting their opinions be known.

[DainBramaged]

22. This is DU, you must conform to the god TOYHONNIS or be excluded

You are not an Eco-doobie, therefore you are banished.:toast:

[SoCalDem]

15. There are just TOO MANY new cars produced..

Americans quit buying that "new car every few years".LONG AGO...

When I started seeing leased-cars becoming more and more prevalent, I saw the handwriting on the wall.. People still WANTED "new cars", but they could no longer afford them..

Cars USED to come with a THREE YEAR payback.. then it wasfour..then 5..then 6..now some have 7 year loans..Seven years is a hell of a long time to be paying off a car..a car that can have 100K miles in 4, and be virtually worthless (for resale or trade) and still have 2-3 years of big car payments.

Many people fall into the trap of "rolling over" the amount still due from their "trade", and after a couple of these "deals", they are paying on 2 or 3 cars at once, and will rarely be able to pay off a car that's still worth much, or than can keep running without a lot of expensive repairs..(even those bumper-to-bumper warrantees exclude some things)..

[DainBramaged]

17. No, they still buy new cars every few years

that's why the industry has been able to sustain sales of 15,000,000 + every year. That's going to change. But as old cars die, they need to be replaced. Used car sales are up, and to many are just as good as a new car.