What will FORD , GM , and Crhysler do after Xmas to boost sales? Will they ever be able to get the consumer off the 0% crack cocaine that they are so used to waiting to see advertise before they will buy now?
I think that they are going to be in a bit of trouble. In previous years, the 0% didn't show up until about April or so, when they were trying to clear out the old lines, in anticipation of new model year rollout in September. I recall shopping for my minivan in 2000, we took deliver 1st of May and the 0% had just kicked in. It was an incentive to buy domestic, because we had to finance part of the purchase. We had really wanted to get a Honda, but they wouldn't give us as much trade in on our old one. That and the difference between 0% and 8.5% were the clinchers. Maybe next time we'll go import, when we can pay cash. We don't fit the average profile I think. We owe on our mortgage, of course (we're only in our 30s, but we have made lump sum extra payments in the past) but the minivan will be paid off in a couple of years (that 0%, no incentive to pay that off early), hubby's car we paid cash for in the spring, and we have NO credit card debt, it gets paid off every month. And we do have RRSPs and RESPs and other investments for the kids.
I guess it's all about priorities and living within your means. Not to say that we don't splurge every once in a while.
All the best,
Margie |
