Quote:
Originally Posted by fielderLS3
But at the same time, they can only fall back on sub-prime financing and extending the payments out for 84 months and beyond (and lets be honest, that's been one of the strongest drivers of the recent rise in sales) so much before they end up eating it all in the end anyway if people start defaulting on payments and they get back underwater cars, or people are simply forced to put off buying the next one because their trade is underwater.
All I'm saying is the automakers are on a knife edge right now between building up sales and revenue through special financing now and setting themselves up for another bust at a future date. I fully admit that the rising costs have a lot to do with things they cannot control, but they need to be very careful in formulating their strategy and risk management for dealing with it, and positioning themselves to be able to cope themselves and not have to fall back on the taxpayer again should anything go wrong. I don't think $45K+ Chevrolet sedans is the most affective way of going about that.
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+1. I think it goes without saying that if you need to take out a 72 or 84 month loan to buy the car, you cannot afford it. Also, the fact that used car prices are through the roof also shows that new car prices are too high...
That said, I think this SS is a one year offering until Chevy develops a RWD V8 offering on the new platform starting at something like $35K or whatever won't cut into the bulk of Impala sales. The size of the market depends on the price: at $45K, it's nonexistent. At $35K, I think it's a lot bigger.