Comments on: Fewer Dealers Means More Costly Cars

By: proreason

proreason — Wed, 10 Jun 2009 15:02:40 +0000

neocon mom: “But pro, do you really think that they will be able to charge more for a product no one seems to want now? ”

Your thought process assumes capitalism and freedom is the economic model.

Under socialism, if you want a car, you will buy the car the commissars want you to buy, or nothting.

By: badcrow

badcrow — Wed, 10 Jun 2009 06:34:15 +0000

An excellent read here from “American Thinker” I’ve decided that it’s used cars for me from now on. I just can’t justify supporting a nationalized industry and this author explains my reasons far better than I ever could.

http://www.americanthinker.com.....tin_1.html

By: neocon mom

neocon mom — Wed, 10 Jun 2009 04:03:09 +0000

But pro, do you really think that they will be able to charge more for a product no one seems to want now? The foreign competition is beating the crap out of them and they charge more. You really think this isn’t designed to fail bigtime (and fail under the guise of private ownership, thereby providing a highly visible precedent and example of how “free-market” capitalism is failing?) There are enough young people who believe capitalism is bad, corporations are evil and will buy the whole story. These folks will change the mythology of the American dream if we let them.

By: neocon mom

neocon mom — Wed, 10 Jun 2009 03:54:56 +0000

Who says any of this is supposed to work to save Chrysler? It’s an exercise in government intervention, a precedent, an exercise that also has the useful benefit of creating a lot more folks who will turn to the government for help. A lot more sucklers at the teat of government benefits.

By: TwilightZoned

TwilightZoned — Mon, 08 Jun 2009 19:14:04 +0000

Hum…I will be in the market for a car within the next 8 months. I was considering the 2010 Buick LaCrosse. However, with GM’s bankruptcy and now the news of a cost increase just because they can-I may seriously pass. I wonder how shooting yourself in the foot feels?

By: Right of the People

Right of the People — Mon, 08 Jun 2009 19:09:22 +0000

Do what I do, I buy 1 – 3 year old, low mileage cars. They depreciate the most in the first 2 years, especially as soon as you drive it off the lot, so someone else pays for the big hit. This way I figure I’m not directly subsidizing the bastards from the UAW but I still buy cars built here. Oh for the days of cars that cost thousands, not tens of thousands. If we could get everyone to refuse to buy new cars from Government Motors and Fiasyler, maybe we could put a hurtin’ on the Useless Auto Workers.

By: Douglas

Douglas — Mon, 08 Jun 2009 16:43:18 +0000

But you see, despite being a “Dodge boy” I’m not stupid. If the prices don’t justify brand loyalty I’ll buy a Mahindra.

By: proreason

proreason — Mon, 08 Jun 2009 15:50:16 +0000

“Remaining dealerships will be able to charge more for cars, analysts say, because fewer dealerships make it harder for buyers to spark bidding wars. And as auto companies scale back factory production, heavy discounts and dealer incentives will dry up. ”

Several of us have been wondering what the economic benefit of shutting down dealerships could be.

Now we know.

Many dealerships prevented Chrysler from overcharging. That’s how capitalism works.

Now that we have socialism, they will be able to charge whatever they want.

That way, the UAW will continue to be able to have lifetime sinecures including delux health insurance and lifetime pensions for jobs that teenagers can learn in a few months.

By: Ragspierre

Ragspierre — Mon, 08 Jun 2009 15:39:38 +0000

This seems to explicitly violate both state and federal anti-competition laws. These statements by the auto-makers are damning.

By: Douglas

Douglas — Mon, 08 Jun 2009 15:36:53 +0000

I recently bought a car when the old one died after 9 years. My wife and I drove to 6 different (Chrysler) dealers, gave them our specs and found one or two cars on each lot that met them and told them to give us their best price. We made it very clear that we were looking that day and would buy the next.

Of the 6 dealers, 2 gave us straight answers on price. One, after giving us his “best price” said, “If you find a better price someplace else come back because I can go lower”.

Of those 6 dealers, 2 have since delcared bankruptcy and 2 will by closed by Chrysler tomorrow. Of course the sleezy slippery guys are still in business while the dealer who gave us a straight answer has just been closed.

That’s great news for the consumer eh?

By: Rusty Shackleford

Rusty Shackleford — Mon, 08 Jun 2009 15:30:54 +0000

And…..car prices need to go up…..why again? Shoot, I can’t afford a new car as it is, what makes these dumbasses think I’m gonna want to buy one of their POS’s anyhow?

(high prices or not)

By: curvyred

curvyred — Mon, 08 Jun 2009 15:28:00 +0000

If their projections are true – they will not survive, they cannot even sale their cars for the most part at reduced prices, I expect it to worsen if the prices go higher.

This the exact results when you have “brilliant” scholars who have no practical “real world outside of academia experience” running the show.