Overhaulin'

In 2009, 60% of car loans will be paid off, does that mean people will rush to buy new cars?

A car salesman told me there are 4 to 5 year car buying peaks, the last peak in car sales were from the years 2005 and 2006. he said most car loans will be paid off in 2009 and 2010 and in those same years they are expecting another peak in new car sales. any truth in that?

Public Comments

1. that doesn't sound correct, i mean, considering the current economic conditions, and would you really believe a car salesman? at the moment, people are ceasing to upgrade their cars, but this won't stop the world. I think the car man just wants you to buy a car.
2. I have been in the business for 10 years most people try and trade after 3 years. The current popularity of 72 month and even 84 month finance will change that. We get a steady flow of customer for the most part until like now the economy get shaky then we slow down. The 2005/2006 spree was caused by low rates and big sales(GM's first employee price sale). I hope it does turn but I wont hold my breath
3. I bet not. The average owned vehicle is nine years old.