Topic: Maritime Noon on CBC Radio 1

[sailor723]

Just finished listening to "Maritime Noon" (a callin show on CBC radio for the Maritimes out of Halifax) The topic was US vs CDN car pricing and general car buying info. The guest was the president of the APA, George Ivey(sp?). He made several interesting points (and did he ever blast car makers over the whole immobilizer issue!) He thinks car prices will be falling in the US in the new year as sales shrink and that the US-CDN price gap will actually grow. The most interesting piece of advice he had for Canadians was "If you don't absolutely have to buy a car now,wait until early 08". I guess he thinks the initial cash rebates we have seen lately in Canada are just the start of more to come and if that doesn't come to pass you can still get a US car cheaper then than now. I only concern I would have with that strategy would be the dollar falling back to 90-95 cents US?

[random006]

The dollar has climbed so much so fast that a slide of 5 to 10 cents would not represent a huge fall relative to the growth.  Furthermore, with the car market hurting south of the border, I think any damage due to a falling Canadian dollar will be mitigated somewhat.

He does raise a good point though.  How many of us need to buy a car at right now .vs. want to buy a car right now.  Most cars made in the last 5 years should still be good for another 6 months to a year without a problem, if not another 5 years.

If your present car is:

• fully or nearly paid for
• in running order
• still suitable for the job at hand
• within your budget

Why not wait?

[sailor723]

The dollar has climbed so much so fast that a slide of 5 to 10 cents would not represent a huge fall relative to the growth.  Furthermore, with the car market hurting south of the border, I think any damage due to a falling Canadian dollar will be mitigated somewhat.

He does raise a good point though.  How many of us need to buy a car at right now .vs. want to buy a car right now.  Most cars made in the last 5 years should still be good for another 6 months to a year without a problem, if not another 5 years.

If your present car is:

• fully or nearly paid for
• in running order
• still suitable for the job at hand
• within your budget

Why not wait?

I'm starting to lean that way myself.....although I sort of fall into your second catagory...(I WANT a new car )

[2latecrew]

http://www.cbc.ca/maritimenoon/media/phonein/phonein_monday.smil

Here is a link to the replayer vesion of the show if anyone wants to listen

[Zombie]

The dollar has climbed so much so fast that a slide of 5 to 10 cents would not represent a huge fall relative to the growth.  Furthermore, with the car market hurting south of the border, I think any damage due to a falling Canadian dollar will be mitigated somewhat.

He does raise a good point though.  How many of us need to buy a car at right now .vs. want to buy a car right now.  Most cars made in the last 5 years should still be good for another 6 months to a year without a problem, if not another 5 years.

If your present car is:

• fully or nearly paid for
• in running order
• still suitable for the job at hand
• within your budget

Why not wait?

I'm starting to lean that way myself.....although I sort of fall into your second catagory...(I WANT a new car )

I know how you feel. I bought a new car 8 years ago and I have been looking for a newer one ever since.

[Snowman]

Soon the price of cars in the US will go up because the material costs required to manufacture one are increasing due to the lower USD.

[The Mighty Duck]

He does raise a good point though.  How many of us need to buy a car at right now .vs. want to buy a car right now.  Most cars made in the last 5 years should still be good for another 6 months to a year without a problem, if not another 5 years.

If your present car is:

• fully or nearly paid for
• in running order
• still suitable for the job at hand
• within your budget

Why not wait?

People coming off lease come to mind...  can you say "actually, I need it for six more months!" to the lease company?

[PhilGood]

Soon the price of cars in the US will go up because the material costs required to manufacture one are increasing due to the lower USD.

US economy is going into a down turn at the moment, the only way to move inventory is to lower the price or giving out more incentive. I think the car price in US will stay as of today for a while and manufacturers may kick in rebate to encourage sale.

[sailor723]

Soon the price of cars in the US will go up because the material costs required to manufacture one are increasing due to the lower USD.

US economy is going into a down turn at the moment, the only way to move inventory is to lower the price or giving out more incentive. I think the car price in US will stay as of today for a while and manufacturers may kick in rebate to encourage sale.

Exactly the point of the guy on the radio show. US car sales are in the dumper and once we get in the winter doldrums it's going to get worse. He's looking for pretty major incentives/price cutting by February or March.

[airbalancer]

He does raise a good point though.  How many of us need to buy a car at right now .vs. want to buy a car right now.  Most cars made in the last 5 years should still be good for another 6 months to a year without a problem, if not another 5 years.

If your present car is:

• fully or nearly paid for
• in running order
• still suitable for the job at hand
• within your budget

Why not wait?

People coming off lease come to mind...  can you say "actually, I need it for six more months!" to the lease company?

In most cases , yes, you extend the lease

[Cord]

He does raise a good point though.  How many of us need to buy a car at right now .vs. want to buy a car right now.  Most cars made in the last 5 years should still be good for another 6 months to a year without a problem, if not another 5 years.

If your present car is:

• fully or nearly paid for
• in running order
• still suitable for the job at hand
• within your budget

Why not wait?

People coming off lease come to mind...  can you say "actually, I need it for six more months!" to the lease company?

In most cases , yes, you extend the lease

Some lease companies may do that. Many will only extend a lease if you are waiting for a new factory ordered car.

[safristi]

it's a case of "Please RE_LEASE me DON't LET ME GO!!!"....never liked that the FIRST TIME....

[mpsrent]

Usually you can extend a lease. When my lease came up on my 2002 Pontiac, my GM dealer actually bought the car from GM at a lower price than my lese buyout. They released the car to me for one year and made money on the deal.

I'd like to buy a new truck but given the current market, I'm not prepared to take a chance. The auto industry has admitted that they have an over capacity issue and the downturn in the U.S. economy will only make it worse. Expect car lots to be full to capacity. The summer of 2008 is going to produce some wild sales and if the Canadian dollar is anywhere near parity at that time, there will be strong pressure for better deals. As I own my truck, I'm prepared to wait another 6 months or longer. 

[Cord]

Usually you can extend a lease. When my lease came up on my 2002 Pontiac, my GM dealer actually bought the car from GM at a lower price than my lese buyout. They released the car to me for one year and made money on the deal.

That's not extending a lease. That's ending one lease and starting another.

[mpsrent]

You are correct. I also extended a lease once with the same finance company.