Wednesday, July 2, 2008

10-Year Low

We're more than sure that you don't need the New York Times to tell you this, but times are a little tough right now in our industry. (But, it is an interesting article, if you want to read it: "New York Times - Car Sales at 10-Year Low")

Prices, no matter what you want to believe, have slid.

In case you're still in denial, here's an example: yesterday (July 1), we had a somewhat desperate inquiry on an '04 360 Spider, Red / Black, racing seats, F1, 9,000 miles, all service. The minimum the customer has to have is $160k. This is the amount left on the customer's loan. This car, we can say with absolute certainty, isn't worth any more than $140k, best case, wholesale. $155k, best case, retail.

Silly, optimistic customer, you say? Unfortunately, it isn't that simple. 

First - if the customer can't get his $160k on the trade (and he won't) someone doesn't make a deal. Second, and far more sinister, it isn't just uneducated customers that are in denial (by 12.5%). Our members - that would be you guys - are in the same boat. 

Why? Nobody is buying. Unless - and this turns out to be the important bit - unless the car is already sold. Which means when you DO get a buyer, you need access to good cars. Nationwide access. iLuxCars access. Because, as it turns out, if you aren't buying and selling cars you aren't in business.

Like we keep saying - Faster. Safer. Better.

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