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Christine Tierney and Bryce G. Hoffman / The Detroit News

June is shaping up to be one of the worst months in recent memory for auto sales, with consumers steering clear of large gas-guzzlers and automakers running low on supplies of small, fuel-efficient models that are in demand.

After an unexpectedly weak start to the month, several auto analysts and forecasters predicted a huge drop Wednesday in the annualized selling rate for June to as low as 12.5 million vehicles.

That's a figure that would have been unthinkable just a few months ago. The last time annual car and truck sales came in below 13 million was in 1992.

"Two months ago, we were seeing dramatic shifts in the market, but this month it's just huge," said George Peterson, president of AutoPacific Inc. in Tustin, Calif. "Four dollars a gallon really was the trigger point."

Shares in General Motors Corp. and Ford Motor Co. slumped on the weak sales estimates, which raised concerns that the deteriorating market conditions will hurt the U.S. automakers' recovery efforts.

Auto executives cautioned that midmonth sales estimates can be rough, but they confirmed that business is down sharply. In addition to the high gas prices, falling home values and sagging consumer confidence that have cut demand this year, auto sales are now falling further because of the industry's inability to respond fast enough to a radical shift in the kind of vehicles that people want.
 

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Discussion Starter · #2 ·
Own a 1999 or newer GM product?

Afraid of purchasing a GMT900 SUV or Pickup truck?

Check out the leasing programs now available from GM.

Even with the price of gas over $4.00 - you may find it a value because GM takes the resale risk - not you.

Let's compare the fuel costs for a 4WD Tahoe and 6CYL Malibu over the allowed 32,500 miles/39 month period. The EPA rates the Tahoe at 16.0 (combined) MPG while the Malibu gets a 19.6 MPG rating. At $4.00 per gallon, the difference is just $ 38.27 per month.

Also - The figures below do not include GM Card points, which may of course be used for leasing transactions.


Examples:

2008 Chevrolet Tahoe 1500 SUV 4WD 1LT Locking Differential, 50/50 Rear Seat

$399/month; 39 month lease
$1181 due at signing for current Chevrolet Owners and Lessees (after all offers).
Includes security deposit.Tax, title, license, dealer fees and optional equipment extra.
Mileage charge of $.25/mile over 32500 miles. Example based on survey. Each dealer sets own price. Your payments may vary.


2008 Chevrolet Silverado 1500 PickUp Extended Cab Standard Box 2WD 1LT with option PDU Power Pack Plus

$249/month; 39 month lease
$1909 due at signing for current Chevrolet Owners and Lessees (after all offers).
Includes security deposit.Tax, title, license, dealer fees and optional equipment extra.
Mileage charge of $.25/mile over 32500 miles. Example based on survey. Each dealer sets own price. Your payments may vary.


More information: http://www.chevrolet.com/currentoffers/index.jsp?zip=10019
 

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Own a 1999 or newer GM product?

Afraid of purchasing a GMT900 SUV or Pickup truck?

Check out the leasing programs now available from GM.

Even with the price of gas over $4.00 - you may find it a value because GM takes the resale risk - not you.

Also - The figures below do not include GM Card points, which may of course be used for leasing transactions.


Examples:


2008 Chevrolet Silverado 1500 PickUp Extended Cab Standard Box 2WD 1LT with option PDU Power Pack Plus

$249/month; 39 month lease
$1909 due at signing for current Chevrolet Owners and Lessees (after all offers).
Includes security deposit.Tax, title, license, dealer fees and optional equipment extra.
Mileage charge of $.25/mile over 32500 miles. Example based on survey. Each dealer sets own price. Your payments may vary.


More information: http://www.chevrolet.com/currentoffers/index.jsp?zip=10019

I can't even get a canyon for that price up here in canada, even a HHR is more expensive. Thats about colbalt territory for pricing at $249 a month. :mad:
 

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Discussion Starter · #4 ·
I can't even get a canyon for that price up here in canada, even a HHR is more expensive. Thats about colbalt territory for pricing at $249 a month. :mad:
You might want to check with your dealer.

From the GM Canada website:

Note that the downpayment is higher because the lease is shorter.

08 Chevrolet Silverado Extended 4WD WT
SmartLease: $215.00/mo
27 months, $3,900.00 Down
Lease APR: 0.5%
Finance APR: 0.9%
Cash Price: $29,495.00

Details here:
http://apps.gm.ca/app/GMCanada/offe...sc=All+Vehicle+Types&s=0&pc=r2j+4g5&x=12&y=14
 

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I know that we don't like to mix politics into the conversations here but doesn't anyone else find it funny that the last time it took a dump was after a long run of Republican leadership and look at it now? It's always a fact that when we come off of a run like that the economy is horrible. We'll have 8 years of Obama and by 2016 we will be having another tech boom and stocks will be trading at all time highs.

Another thing I find funny is that whenever you have an Oil Man in the presidential role, the American auto industry takes a serious hit. Why is that fact filled with so much irony?

With $5/gallon coming after 4th of July for much of the heavily traveled vacation regions I don't see GM turning anything other than the Cobalt and Aveo into money makers.
 

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What's so unexpected about this? Gas is $4+/gallon, no one wants gas guzzlers. People are losing their jobs at a rapidly accelerating pace. People are losing their homes in record numbers. Who's going to buy a new car when they've lost their job or house?
 

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Why do Canadians get screwed with car prices?

I don't understand why they are so much higher than in the U.S.?

Is there a massive tax associated with new cars?
 

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Why do Canadians get screwed with car prices?

I don't understand why they are so much higher than in the U.S.?

Is there a massive tax associated with new cars?
No.. the car companies just have not adjusted prices to US - Canadian dollar parity. A few years ago a US dollar cost us $1.40+. Now they are equal.
 

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Maybe the potential customers are waiting to see what's happening with gas price - whether it will settle at 4$ or 5$ or what will be the prince increase rate if the prices will continue to go up. If the rate would be small - like 20 cents per year(ups and downs), customers would give a chance to big vehicles for some years to come.
If the price of gas settles at some value for the rest of the year, there should be some good selling months by the end of the year as reluctant buyers would make up their minds.
 

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I know that we don't like to mix politics into the conversations here but doesn't anyone else find it funny that the last time it took a dump was after a long run of Republican leadership and look at it now? It's always a fact that when we come off of a run like that the economy is horrible. We'll have 8 years of Obama and by 2016 we will be having another tech boom and stocks will be trading at all time highs.

Another thing I find funny is that whenever you have an Oil Man in the presidential role, the American auto industry takes a serious hit. Why is that fact filled with so much irony?

With $5/gallon coming after 4th of July for much of the heavily traveled vacation regions I don't see GM turning anything other than the Cobalt and Aveo into money makers.
You can really name only one president this even applies to and that is Clinton and it is without doubt he got lucky he was president during the dotcom boom. There really is no logical way to blame bush for the bad economy coming into the turn of the century. I guess you could make that claim now but you still are making a foolish argument considering he didn't force people into homes they would eventually not be able to afford.
 

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As sad as the situation is for GM and Ford, it's about time that people started to choose a passenger vehicle that just meets their needs, rather than grossly exceeding their needs.

The writing was on the wall when the mid-size SUV sales (TB, Envoy, Explorer, etc) fell like a rock.
 

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Imagine the hit GMAC will take when those trucks come back off lease?
The real problem for the Big 3 is the residual values of the trucks and Suv's that are now coming off of lease. Some could have been established as high as 55% of their original value!
 

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You might want to check with your dealer.

From the GM Canada website:

Note that the downpayment is higher because the lease is shorter.

08 Chevrolet Silverado Extended 4WD WT
SmartLease: $215.00/mo
27 months, $3,900.00 Down
Lease APR: 0.5%
Finance APR: 0.9%
Cash Price: $29,495.00

Details here:
http://apps.gm.ca/app/GMCanada/offe...sc=All+Vehicle+Types&s=0&pc=r2j+4g5&x=12&y=14
I hate that!

That makes it "seem" like it's cheaper.

I hate how car price advertisements trumpet that great "low" monthly payment. But it's meaningless because every one of them has a downpayment of some wildly varying amount, so there's no clear comparison. Like the downpayment somehow doesn't count. It counts! I have to pay that, ya know!

The US example ($249 a month + $1909 for 39 months) equals $298 a month.

The Canadian example ($215 a month + $3900 for 27 months) equals $359 a month.

It would be so much easier to comparison shop if they would all list the same lease term, same mileage, and the same amount down. (You can always choose to vary the months, or miles, or down payment from that starting point) That would be so much easier for the customer, but who cares about them? Let's "deceive" them instead.
 

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What's so unexpected about this? Gas is $4+/gallon, no one wants gas guzzlers. People are losing their jobs at a rapidly accelerating pace. People are losing their homes in record numbers. Who's going to buy a new car when they've lost their job or house?
I was thinking the same thing. "Gee, honey, I just lost my job, gas is $5, we're behind on the house payments....I betcha buying that new Tahoe will make us feel better!" Yeah, I'm just kidding, but with the credit mess we're in, you have to know that some people really do think that way. The fact that manufacturers are acting suprised at this is just assinine.
 

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Good :)

A slowing/declining car market would make it harder for competing companies, the fittest shall survive.

I wonder if Bob Lutz still doesn't believe that there is a market for small cars in the US?
 

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Actually, some of the car industry "solutions" may not work out too well. It can't just be a narrow focus on fuel economy. If a current vehicle's gas costs went up by, say, $2000 dollars, that's not "merely" fuel. It's MONEY.

To make up for that, my next vehicle might be a more fuel efficient vehicle to save that amount of fuel. Or (what's more likely) is my next vehicle will be a similar one to my last one (fuel economy-wise) but one that COSTS $2000 less.

And that idea is the opposite of the car makers' idea of selling you a much more expensive hybrid (or whatever) so you can save some money on fuel. Particularly if said hybrid costs more than the fuel savings. Or if it is a less capable vehicle than my previous vehicle.

Add that to the rest of the somewhat bleaker economic picture, and you're looking at a LOT of car buyers looking to buy cheaper (not necessarily much more fuel efficient) vehicles next. And that just isn't a good profit picture for any of the auto makers.
 

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Good :)

A slowing/declining car market would make it harder for competing companies, the fittest shall survive.

I wonder if Bob Lutz still doesn't believe that there is a market for small cars in the US?
Well, like it or not, from a financial stand point, Toyota is by far the fittest.
 

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Actually, some of the car industry "solutions" may not work out too well. It can't just be a narrow focus on fuel economy. If a current vehicle's gas costs went up by, say, $2000 dollars, that's not "merely" fuel. It's MONEY.

To make up for that, my next vehicle might be a more fuel efficient vehicle to save that amount of fuel. Or (what's more likely) is my next vehicle will be a similar one to my last one (fuel economy-wise) but one that COSTS $2000 less.

And that idea is the opposite of the car makers' idea of selling you a much more expensive hybrid (or whatever) so you can save some money on fuel. Particularly if said hybrid costs more than the fuel savings. Or if it is a less capable vehicle than my previous vehicle.

Add that to the rest of the somewhat bleaker economic picture, and you're looking at a LOT of car buyers looking to buy cheaper (not necessarily much more fuel efficient) vehicles next. And that just isn't a good profit picture for any of the auto makers.
You make an excellent point. If I have $25,000 to spend over 5 years on a car, I can buy a $20,000 car if gas will cost me $5000, but I can only buy a $15,000 car if gas is going to cost me $10,000. Great fuel economy is fine and dandy, but what good does it do to save $200 a year if the car costs you $2000 more?
 

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Well got the mail today, and the dealer where my family has bought all our cars for the past 10 years, just sent a "Privite" Sale Inivitation to me. You have to make RSVP and eveything.

Here is what the deal includes

GM Supplier Pricing on all 2008 models
New Canadian vehicle rebates up to $14,000
Finacing as low as 0% for 72 months
Lease rates of 0.5%
Over 75 pre-owned vehicles including 2008 Grand Prix's for $16,000
Complimentery refreshments and Lunch
All perchases recieve walkaway insurance, read hazard tire warranty with nitrogen, 3 lube oil and filters, Global 1 theft protection
Each purchase will recieve $100.00 of NO charge accessories
Draw for `Day at the Spa` for your vehicle

And they sent a list of cars from GM and other manufactures saying if you have one of these cars you get a $750.00 bonus off the price, and you
don't even have to trade it in. And a Buick LeSabre is on the List!!! extra 750 for me


I already called, so I am going in to look at what kind of deals are there.

Question What is GM Supplier Pricing?
 
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