Overhaulin'

Will car prices become lower due to the credit crunch?

Due to the bad credit crunch, do you think/know that car prices will drop? The car I had in mind was a mini cooper s.

Public Comments

1. I expect prices to be more competitive as demand is reduced. Whether that will be so for premium cars is more difficult to assess for there are still many quite rich people around who will continue to get richer.
2. Not on those high demand low supply type cars and depending on just how the global economy turns prices and interest may both shoot up as a result of our playing with interest rates for so long. When Jimmie Carter was President interest rates shot up to the upper teens and low twenties and were finally capped by Congress, (credit card companies thought that was a hell of an idea and just kept the 21.99% rate) at the same time we had screaming inflation. I know in the car business we went through 10 sets of dealer pricing books in 1 year. What a car cost in August is what it's MSRP was in June. A+++ credit got you a 13.95 interest rate that was net cost. I started expecting the prices to drop when inflation was brought under control, but it seems as though those higher prices were a good idea too.
3. i doubt that the showroom price will drop on cars in the uk but if you start to shop around dealers will be starting to get a little keener to do you a deal to keep stocks rolling
4. I wouldn't expect much of a reduction in price for a Mini. Small, fuel efficient cars are at a premium now. Mini usually keeps their supply lower than the demand so they can get top dollar for them. You may be able to get a good deal, but don't expect thousands in savings.
5. Car prices will not drop dramatically. Raw material prices are rising, it costs more to manufacture the cars and it costs more to ship the cars. Prices can not drop by a significant amount. What will happen is people will be purchasing more inexpensive cars and leaving the luxury brands and the expensive vehicles sitting on the showroom.