Comments on: Will Anything Stimulate Auto Sales? http://www.contrarianprofits.com/articles/will-anything-stimulate-auto-sales/8219 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 18 May 2010 05:09:46 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: MurrayR http://www.contrarianprofits.com/articles/will-anything-stimulate-auto-sales/8219/comment-page-1#comment-6998 MurrayR Wed, 19 Nov 2008 12:30:22 +0000 http://www.contrarianprofits.com/?p=8219#comment-6998 The most profitable area for car companies became their finance divisions, so the sales of their cars won't get them going in the right direction, it would be the return to the easy credit that pushed sales and the even more profitable leasing, which has run dry. That's their problem - not sales but the easy credit that drove them. My recommendation: a cash voucher for a 1990-1995 Volvo or Mercedes paid in full. Continuing to bailout the Big Three is just a way of keeping the debt machine going. The most profitable area for car companies became their finance divisions, so the sales of their cars won’t get them going in the right direction, it would be the return to the easy credit that pushed sales and the even more profitable leasing, which has run dry. That’s their problem – not sales but the easy credit that drove them. My recommendation: a cash voucher for a 1990-1995 Volvo or Mercedes paid in full. Continuing to bailout the Big Three is just a way of keeping the debt machine going.

]]> By: Xerxes http://www.contrarianprofits.com/articles/will-anything-stimulate-auto-sales/8219/comment-page-1#comment-6985 Xerxes Wed, 19 Nov 2008 05:46:28 +0000 http://www.contrarianprofits.com/?p=8219#comment-6985 If the government wants to stimulate car sales, a stimulus check is the wrong approach. A better way would be a voucher good for 50% of any new vehicle of your choice. Just to make sure the carmakers and dealers don't play games with the prices, a requirement would need to be that the sales price cannot exceed factory-to-dealer invoice for that exact model, trim, and options as of 3 months ago. $60,000 off a BMW 760Li would motivate me to go stimulate the economy, how about you? If the government wants to stimulate car sales, a stimulus check is the wrong approach. A better way would be a voucher good for 50% of any new vehicle of your choice.

Just to make sure the carmakers and dealers don’t play games with the prices, a requirement would need to be that the sales price cannot exceed factory-to-dealer invoice for that exact model, trim, and options as of 3 months ago.

$60,000 off a BMW 760Li would motivate me to go stimulate the economy, how about you?

]]>