So it it a good time to buy a new car or motorcycle at this time of the year?
You’ve probably seen all the ads by now of dealers over stocked with cars ordered before the financial crisis. There genuine bargains for new but for selected models.
I say yes go ahead and buy one – if you can afford it but make sure its the model that you really want. Why? the resale on these cars will drop just like their original prices. Car dealers aren’t that stupid. So you better be prepared to keep the car for a long time to ensure you don’t get totally ripped off.
Feel sorry for those who bought new cars just before the crisis only to see the RRP on new versions of their car drop by as much at $10,000. That drop will be reflected in their own car’s resale.
Motorcycle prices are much more stable since during the crisis many bought scooters and other models to save to costs. If you bought a $2000 and used it as your primary transport during the fuel price hike you’ve probably recouped your initial purchase price! Hopefully you’ve enjoyed your experience and will keep it in reserve for the next and inevitable fuel crisis – coming soon!
However now the financial crisis has hit, manufacturers will be reducing production to save costs and so prices in a traditional economic model will probably rise. BUT this is a different crisis and increasing prices will lead to further economic hardship for themselves!
So it is unlikely the manufacturers will increase prices BUT dealers will try to take advantage of the crisis and ask you to buy now to avoid next years price rise. DO NOT believe this! We are in a new type of financial crisis where there is an economic downturn but inflation or prices rises do not work. It’s called deflation and its here to stay.
Some experts say its because the dollar has fallen so much against the US so things will get more expensive. Rudimentary economic analysis I say. How may times have they been wrong on the past 12 months. It is so clear these days that so called statistical facts and measures from the past do not work. So humbug!
My advise is to buy when you are ready be it this year or next year don’t be conned into the sales pitch of prices rises.
I had to post this because not many motorcyclist aren’t too interested in vehicles that use alternate fuels??? Well Honda have begun to release it’s hydrogen fuel cell solution to powering our cars.
Say hi to the Honda FCX Clarity!
Some brainless people will say that it takes more toxic materials to make but if you have a think about it – just a tiny bit all the technology is currently being used and manufactured/recycled anyway!
Whatever you think – let’s not dismiss this early attempt to replace petrol and reliance on oil with something completely different. That MAY solve a lot of things like a couple wars and maybe even the planet for example…
The average price of petrol I last paid for petrol was $1.48 for 91 Octane Unleaded.