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Study: Most Americans postponing next new car purchase by at least 4 years

07/14/2009, 4:31 PM

By Drew Johnson

Perhaps a sign that the embattled U.S. auto sector may take longer than first expected to recover, a new study reveals that 59 percent of Americans will wait at least four years before purchasing a new car – a significant increase over previous years.

According to AutoPacific’s annual survey of new car buyers, 59 percent will wait four years or more before making another new car purchase. That figure is a significant jump from last year when only 44.8 percent of new car buyers said they would wait four or more years to purchase a new car.

“With the economy the way it is, the emotion and sex appeal of buying a new car isn’t there,” AutoPacific President George Peterson told Automotive News. “Cars are pretty good these days, and you’re not forced to go back into the market and buy a new car every three or four years.”

Overall, the survey – conducted last April – revealed that 80 percent of buyers will wait at least 3 years before purchasing a new vehicle. That could spell trouble for the U.S. auto industry as sales continue to hover around 27-year lows. Despite a predicted uptick during the latter part of the year, U.S. new car sales were down more than 35 percent through June.

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07/14, 4:34 PM

posted by:

pavlindrom

I’d buy one now, but I don’t have enough money. My boss doesn’t believe in giving raises that much.

07/14, 4:39 PM

posted by:

worst 3

love to now that threre are some good rwd cars with manuals transitions but don have the money :(

07/14, 4:55 PM

posted by:

JakeK66

I’m torn here, on one hand I’d love seeing people buy new cars pushing the market back to where it was before, but on the other hand this is probably how it should be anyway. People shouldn’t buy new cars every year because it is a waste, hurts used car values, and it can’t go on forever, at some point it needed to slow down, which looks like what is happening now. I’ll keep trading in my car every couple of years, but that’s just me, I don’t think it should be everyone.

07/14, 5:07 PM

posted by:

Rafa LL

You’re forced to do so if you buy GM, they won’t last 4 years anyways, right NMOFGM?

07/14, 5:11 PM

posted by:

jayjc08

Right, it needed to slow down sometime. I’m surprised automakers haven’t used this as an excuse to bring out some real crap products, like they did in the 90’s… and late 80’s… and early 80’s… and mid 70’s…

07/14, 5:11 PM

posted by:

Impulsive

So do the foolish leaders of the auto companies NOW see that a turnaround isn’t coming very shortly?

07/14, 5:44 PM

posted by:

johnnycanuck

4 years, big deal. Married guys can go twice that long waiting for a blowjob standing on their heads.

07/14, 6:02 PM

posted by:

Bankruptcy2009

Mr. Canuck I did realize that? Hmm makes you ponder a moment in Silence wondering why married guys have to wait for a blowjob standing on their heads. AH yes that’s it will never happen!?

Meanwhile I feel sorry for pavlindrom that he can’t get either his new Ford Fusion Hybrid or 2010 Taurus SHO :( Because of his cheap ass Boss.

07/14, 6:07 PM

posted by:

FSVT_ROCK

Haha ——–> pavlindrom, anyway that is true. By the economic are right now, you will never get your raise for a while.

For me, we probably going to trade in my wife’s 2007 Fusion in 2 and half years, that’s when we going to be pay off and get us another new car hehe. More people are not going out spend more people is going to be lay off.

07/14, 6:46 PM

posted by:

tripleonefive

You’re forced to do so if you buy GM, they won’t last 4 years anyways
-They dont need to last 4 years all they need to do is last 90 days lol

07/14, 6:47 PM

posted by:

leftwingagenda

i’m still in the market for a new car, although at times i talk myself out of it due to the economics of it…the tax break introduced this year helps, as i live in an area where i’d be dinged 9% tax (state + city) on a car, which would be really painful otherwise…

but i don’t think the market will go back to where it was before, at least not for a long time…before, the market was artificially inflated due to ever-increasing home prices and bogus home equity loans…now that the bubble has burst, the car market should shrink accordingly…and i mean shrink, not dip and quickly rebound…

07/14, 8:34 PM

posted by:

Fletch

Try 10 years. There are still too many automakers in this game, nobody was allowed to fail, which is what needed to happen for the strong to succeed. I will be holding onto the current cars until technology comes around and the true leading automotive companies are clear. Fuel and mileage double taxation is coming and it will be a bitter pill for consumers and auto makers to swallow.

07/14, 8:45 PM

posted by:

Architect

This means nothing without knowing what the average ownership period is for new cars. So the market was 14M per year…how does that translate to turnover? We own cars on average 5-6 years, and I make good income…it makes no sense to trade more often than that.

That being said, I have a hard time believing this data – or rather, that 60% of those who answered that way WILL ACTUALLY FOLLOW THROUGH on not buying for 4 years. Truth is, now’s a great time to buy. In fact, my wife’s Tahoe is 5.5 years old with 94K miles, and we’re thinking about getting a car this fall…probably an Enclave (unless I can talk her into a 2-row SRX!).

07/14, 8:52 PM

posted by:

JakeK66

1115 – You always make me laugh.

Leftwing – It especially sucks because they make you pay it up front too, so you need the money NOW to get a car. It’s no cheaper for cars now than a couple years ago, actually, it’s more expensive. Remember them raising the prices on everything last year?

07/14, 9:13 PM

posted by:

johnnycanuck

If you take too much stock in anything the sheeple say from one minute to the next you’re going to be in for one hell of a bumpy ride. Do the same survey after one big week on the DOW or the TSX and the results would be 10 points different.

Fletch, I understand your pessimism but I think you’re way off base. The world’s not getting any smaller and the fleet’s not getting any younger. Keep in mind that whole planned obsolescence conspiracy and it’ll help clear your mind. Happy thoughts now.

07/14, 9:18 PM

posted by:

mayer_ray_nagin

Sorry LWA but I gotta laugh at an open leftwinger not wanting to pay taxes to support the BS you lefties want everyone else to flip the bill for. Then again, if you had to pay for your BS yourself, you wouldn’t quite be a leftwinger because in my experience your agenda is to make everyone else pay.

Other than that does anyone blame anybody for not buying now? I got the money and desire to get a new ride but why bother? Just to keep people employed who go and elect a set of DC idiots hellbent on screwing me over? Forget it. They can starve in the streets for all I care. I know if I were, they wouldnt care, so WTF.

07/14, 9:34 PM

posted by:

johnnycanuck

You know I was just going to ask where the heck mayer_ray’s been lately and there you go. Got those fires all stoked up buddy?

07/14, 9:40 PM

posted by:

jdasch1

225 million cars on the road and a scrap rate that will climb to 10% a year with these “pent up buyers”. People say 4 years, but the emotions change as the car breaks. 10 million cars a year for this year is acceptable, but soon that will change. The exciting cars will sell, and the boring ones will go buy-by. So long Chrysler, Mitz, Suzuki, and most of GM. Sad resale numbers along with ugly cars…see-ya.

07/14, 11:34 PM

posted by:

Bankruptcy2009

1115 i have to hand it to ya on that GM lasting 90 days stiuff , dump the mountain of debt. in 40 days and 40 nights

07/15, 12:22 AM

posted by:

Commodore

That’s pretty overstated..most Americans don’t know what they will buy next week (since they blow through their paycheck as soon as they get it) so you can’t really expect them to tell you what they will do 4 years from now. They are pretty rash consumers that don’t wait to make a decision.

Anyway, why do you have to make everything about bashing GM 1115 and all the other ones like him? It’s not like every blog post needs to turn into GM vs Toyota/Honda wars.

07/15, 12:24 AM

posted by:

leftwingagenda

lol, mayer, you really do make me laugh sometimes…you act as if because i promote a left wing agenda that i wish to give all my money to the federal government (to hire more IRS employess to make you pay, apparently)…that’s not exactly how it works, you’re really just applying stereotypes to me that i don’t really buy into…you’re showing signs of just reciting the pablum of the right wing media sphere without having a real argument or evidence or facts…

it’s also completely consistent to be socially liberal and fiscally conservative…but then again, the policy of the “conservatives” has changed a lot over the years…when it comes to things like deregulation, it’s pretty clear the conservative policy of letting the markets regulate themselves has completely and utterly failed…so, i’m against that…de-regulation to the extreme = bad…but does that imply i want to take money from your pocket?

well, in your specific case, sure ;) but not generally…

the only thing i would counter your rage with, mayer, is that if you think for a second that if there was a different administration in office that DC wouldn’t be full of idiots that are also hellbent on screwing you over, you’re completely mistaken…when it comes to power in this country, you’re on the outside of the bubble…meaning you’re out there on your own just like everybody else who has to work and isn’t rich enough to say “eff off” the rest of the world…i truly think your fooling yourself if you feel that you’d be any better off with a different administration in office today…

07/15, 3:27 AM

posted by:

mayer_ray_nagin

JohnnyC, I’m in Tokyo right now so I’m only jumping in here occasionally. It is freakin humid here right now.

LWA, I’ve been socially liberal and fiscally conservative all my life. To me socially liberal means people can do pretty much what they want – just dont dump their issues, failures, or irresponsibilities on me when it bites them in the butt. I dont dump mine on others so when the Fecalmatter In Chief blows his BS out about how we need to care for all the turds in the social toilet, all I gotta say is “look prez, you’re one of ‘em so go eff off and flush yourself and your crappy a$$ policies with you you bastard.”

Now, do I think a different admin would be better? Yes and no. I think the GOP is as full of crap as the dems and proved it sickeningly under Bush, but since we are stuck with both sides of the rancid political spectrum, both of which I despise with every hair of scrotum, I have always said there should be balance in DC, meaning the one-party BS like we have now or as with 2001-2006 is wrong because there is never compromise to a wider spectrum of population. So was McLame better than Oblowhard? – probably not, but the simple fact that one party would not dictate the gamut of political discourse would mean better policy. Hell, it cant get worse that these shîtheads blowing trillions at a time without even reading what they pass or giving a flip about the ramifications that are just a couple years away.

07/15, 4:08 AM

posted by:

A4

Well a GM vehicle is guaranteed for 5 years/100,000 miles, so thats a bit more than 90 days.

07/15, 8:40 AM

posted by:

parts guy

A4: don’t try to agitate 1115 by using facts. It will turn into a full blown ridiculous argument that consumes several days and several pages of posts on LLN.

07/15, 9:24 AM

posted by:

fishsticks

@mayer_ray_nagin
“turds in the social toilet” That is great I intend to use that a lot. We have a lot of turds as you know.

Is the economic mood in Japan even worse than here? Twenty years of stimulus, quantitative easing, perpetually low interest rates and huge infrastructure projects to nowhere (sound like a familiar plan?). For those not in Japan, there stock market is 75% below its 1989 peak.

07/15, 9:43 AM

posted by:

zfenderguy

When the market starts to look up, a lot of those same people will probably reverse that decision, and he number will probably settle back to where it was. Besides, look at all the people out there who drive old cars and have no intention of buying a new one ergardless of the economic climate. This statistic is a reaction to the climate du jour IMO.

07/15, 8:21 PM

posted by:

Ricer Fly By...

I really need to get a new car now. My 2005 Dodge Stratus has 93,000 miles on it. That’s gives me an estimated 7000 -10,000 miles before the transmission takes a dump…… buy German, buy American, buy whatever the hell you want, because you only live once.

07/15, 9:55 PM

posted by:

jayjc08

leftwing- What are you talking about!? More regulation is why most companies are moving overseas! I’m not talking about set wages and correct people-treatment policies, I’m talking about business policies that interfere with more than just profits, but the ability to the business to operate.

Take for example, the electric business (as in actually selling electricity). Deregulation in many states such as Texas has created a small but growing market for “wholesale electric” marketed to mid-sized businesses, saving them up to 50%.

But increased regulation, such as in the business sector, has pushed MANY investment and foreign monetary exchange companies OUT of America.

So how has self-regulation failed? Aside from some minimum requirements, such as minimum wage, safety regulations (but not to the extent of allowing an employer to sue for the smallest of injuries. Most places are scared to hire for that reason!) and some other business regulations, America has done well for the past 200 years. China is successful with it, and conditions are finally improving.

07/15, 11:27 PM

posted by:

mayer_ray_nagin

The bank failures causing this mess were a result of both (poor) bank regulation and govt interference in the form of a providing a virtually unlimited source of funds to finance the bad bank regs, thereby diminishing the respect for capital and pushing self-regulation to the side. Smaller businesses and banks who do not have access to such crap fared much better. The anti-self-regulating folks are just using the misplaced backlash on their power grab. It wont work long term because businesses will offshore their capital along with the jobs to protect it from the greedy hands of DC, and then the lefties will come in and say “look at how evil the businesses are!” Truth is they are doing on a grand scale what I am doing here in Japan on a small scale – protecting what I have from Barack Obolshevik’s and Nancy Peloser’s theft ring.

Fishsticks, I’d say the business mood here in Japan is better than in the States but it is prone to stay more toward the mean culturally. Unemployment is over 5% now which is historically obscene, and talking with people it is evident the workers are pretty miserable and worn out. Even in robust Tokyo job changes are a bear because nobody is hiring so people are just tolerating what they have. Govt’s attempts to correct things have done nothing but make life worse in general. Unlike Americans, I dont find the Japanese to be a bunch if dingleberries clinging to the anus of government, and as such they are less whiny than the average gringo poosae who keeps screaming how everyone owes them something while they are too lazy to do something for themselves.

Best line ever was a twist on JFK’s inaugural BS ….
…… “ask not what your country can do for you, … ask what your can do for yourself!
and then get off your butt and do it.

07/19, 2:21 PM

posted by:

jackjimturkey

makes sense

 
 
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