deflation in economy and used cars

January 7, 2009

the government just reported the second straight record decline in consumer price index since 1947. it stands to reason with the lack of credit for car dealers and the consumer, that prices of units will fall significantly soon. the manufacturers will have increased rebates to mover units or they will have even more factory closings than they now do. this will only reinforce the price drop of used inventory. the biggest difference now is the industry is moving from a model of “I hope/I think”┬ámarketing to one of “i know” marketing.