Overhaulin'

Are car prices going to fall like the home prices did?

Since no one wants to buy big cars anymore, are the prices on cars going to fall like the home prices did in 2005-2006?

Public Comments

1. Truck and SUV prices have already fallen several thousand dollars. But I don't see much more because the price of metal, plastic, rubbar and labor are way up. According to June 30, Automotive News the dealer on an Average loses $136.00 per car so I don't see cars getting any cheaper when they already are losing money on them.
2. Probably some, but it won't matter as most people are panicked now and are looking at those little gutless glorified golf carts.
3. trucks and big suvs are free falling and i dont think we are at the bottom yet small cars are holding well but big trucks and etc seem to be dropping every day( im referring to trade in and wholesale value of used cars here) new cars have the biggest rebates ive seen in years dont know that the factories can do much more
4. Bigger vehicles already have, and I think will continue to fall as gas keeps going up and up, especially used ones. People are trying to get rid of those things as fast as they can. It's definitely a buyer's market when it comes to trucks and SUVs.
5. Suv's have dropped like 20% in the last 6 months. Saw a 2006 Nissan Armada LE 2WD loaded with navigation and 45000 miles selling for 18k, last year it would have been selling for almost double that. People losing lots of $$$ on these. Same will happen to the rest of us when they come out with vehicles with different power plants ( newer hybrids, electric, hydrogen, etc) all the current cars will be worth next to nothing as people will no longer want these. With GM cutting back on trucks ( and all the others will follow) and raising MSRP's on the 2009 model year ( and they will follow here also), and with them buying out older workers, shutting plants and losing lots of money, I think you will see them scale back production and reduce the supply. Kind of like the Smart cars. You lower the supply, you can charge MSRP and get it and don't have to worry about rebates and such. Kind of silly this is the only industry where you can go in and say, 40,000 car, I'll give you 36,000 for it. I don't think that flies when buying groceries or a TV at Best Buy ;)