Good post. In the 2008 collapse, we purchased my wife’s Mercedes GL350 then at an amazing discount. Paid cash and that was the least depreciation hit I have ever taken with a car.
Will watch for similar deals in the market if it gets to that point. Still too early to really know. Although, my lease is up in June and I am seeing some aggressive lease deals on cars with MSRP’s $10k more than the 5 Series I drive now.
Quote:
Originally Posted by Flacht3
How about we look at some data and history?
In the 2008 recession, luxury automotive sales took roughly a 25% hit. Yes, that's a BIG hit.
http://www.nbcnews.com/id/32860931/n.../#.XoUGWNNKiL8
However, who here was a car buyer during that time? Do you remember the market? You didn't see a fire-sale at Ferrari or a buy-one-get-one on BMWs, because most recessions (however painful) come to an end in 1-2 years, and brands/dealers/etc. are suited to weather the pain (sure, dealers are making less money, brands are pulling in less revenue, but so is everyone) in the short term vs. diminish their product for the long term.
Typically, luxury items are one of the first things to bounce back, once the wealthy feel comfortable splurging (many times it's not even the ability to splurge...but the perception and "guilt" of buying luxury items in a downturn, which is very very real).
https://archive.fortune.com/2010/07/...tune/index.htm
I DO think we're in this for the next 1-2 years and it will be painful, but we'll gradually start recovering in 6 months.
I DO think we'll see "deals" on cars, but I'm still talking 5-10% increase on discounts, incentives on financing, etc.
I DON'T think we'll see prices slashed 20-30% etc. not even in the used market. People know they're better off just holding on for a few years.
I DO hope everyone here goes through the least pain possible, and DON'T think it really matters what types of discounts we'll see and would rather worry about if we'll all be employed. |