LetsLearnFinance

Car Dealer : Thinking to buy?????????????????????
Person : Well well need to think over it!!!
Car Dealer : (After a long pause) OK......................!!

Recession in car sales

American car dealers are in real rough patch in this economic down turn.Will this recession eat up even more??? Will this recession be averted?? History says it is quite difficult. in fact down turn has began and car sales have taken the early hit.

The graphical representation makes it quite clear the percentage change in sales of new cars with time horizon of 1 year with 12 months before.

Adjusting it with inflation it is not positive, rather it 2% down. The down fall continued with figure slipping down to around 2.5 % by July.

A little introspection in this can help a lot. If we go back to mid 90’s

American Economy saw no happy feet in fact on contrary there has been several recessions.Even with several other indicators we cannot deny the hit of new car market. According to census bureau officials, revenue has been halved, keeping aside sales of parts, repair and services. Soaring gas prices, oil prices, liquidity crunch are just adding fuel to fire.

Thanks

Pamela