New Deals for Car Buyers, Via the Auto Bailout

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Does any of it make sense?

The government is bailing out the automakers left and right. Yet as stated the consumers get no relief. How about instead of the government bailing out the automakers the automakers bailing out themselves! What a concept!

The profit on an American made car is large and yet even with facing bankruptcy they are not making much change to their pricing. I believe they can bailout themselves and help the American people, all by helping themselves. Price the vehicles at a resonable price where the automakers make a lesser profit, but still a profit and the buyer gets a much needed break.

Americans are smart and will not buy when they know the economy is so tough. Not to mention on whole Americans realize the automakers are still riping us off with their high prices. Americans want to drive more fuel efficient cars as well as vehicles that are better for the evironment. We all want to help in any way we can. But the "green" cars are more expensive and the incentives are just not their to allow us to move towards them.

Basically the government needs to stop helping companies that refuse to take a cut to help themselves. Sell more cars at a smaller profit and you still make more money. But why should the manufacturers do that when the government will bail them out. Our government needs to force these businesses to bail themselves out by forcing them to cut their profit margin.

As in Germany the government is offering big incentives for people who are getting the older vehicles off the road. Wouldn't we all love to trade in our old vehicles that we are scared to drive anyhow! But here in the "good" USA we just cannot afford it.

Pricing a new vehicle the other day I was amazed to find that the prices are just as high as before and the rebates are just as low as always. I am a prime example of what is going on. My husband is a hard working police officer and we are parents of three wonderful children. His vehicle is 13 years old and breaks down often. But we cannot afford a new one. Here my husband helps everyone stay safe and yet he is not all that safe to be driving his own vehicle.

I don't know what happened to pride. The auto industry has none!

Joy of NV @ Apr 29, 2009 11:36:50 AM

Why isn't The USA modeling its auto bailout after Germany?

In Germany the auto industry is also struggling. Germanys' response is to give citizens a $3500. credit towards a new car when they turn in a car 8+ yrs old. The enviroment wins (new cars are cleaner), the auto industry wins, and the consumer wins.

But here in the USA, the only ones worthy of a bailout are the auto industry. One would think the Republicans had never left! The only "change" is what rattles around in our pockets. I have to replace my 17 yr old Honda, and would love to buy American. But the only cars I can afford are from 2006, and they are not American. They rate high on quality & milage, but 2006 American cars either don't, or are too expensive. I can't afford a new American car, and the employment incentives don't help someone on disability.

A friends' family just bought a used car. They couldn't wait around for "change" to trickle down (hey, isn't that Reganomics?) to the people. They are a family of 4 with 1 full time and 1 part time worker. Should this government ever get around to supporting the people, the workforce, and not just the businesses, it will be too late for them. Believe it or not, I'm a lifelong Democrat. But so far I don't see any difference between this Democratic administration and the prior Republican one in terms of supporting people vs. corporations. Ok, maybe this one scapegoats smokers more, but that's about it.

SaMM of NY @ Apr 13, 2009 20:28:09 PM

gm car prices

Iam retired from GM, at one time the price of a car was based on a workers wage.The more you made, the higher the price of the car.Not anymore. Its now based on what the public is willing to pay.GM wants wages at $14.00 an hour. but they want to keep the price of cars same as before.Its like paying $30.000 for a $12.000 car. with wages reduced along with a smaller workforce, you would think GM might want to make cars their workers can afford.GMhas priced themselfes out of todays market by being greedy.

Don Mandelka of MI @ Apr 06, 2009 11:25:42 AM

Aut Sales

And that is why the auto industry is in the toilet. Everyone wants more more more. What happened to the value of anything.

Scott of NY @ Apr 03, 2009 17:52:25 PM

Auto Sales

Cars typically last so long today that I could care less about the resale value. I owned my last car, a Jag, for 17 years and expect to keep this one as long - a Cadillac CTS. I will only buy American right now.So that resale thing for me is meaningless and with cars actually lasting as long as TVs and other appliances why bother trading? Besides, everyone knows a car is worth anything after a few years unless it becomes a collectible in 25 yrs.

So, the only thing I want is a great deal. I'm working on the West Coast as a consultant for a few years and need to buy a car for my wife when she comes out. Frankly, the deals are not that good and there are fewer lease deals available. I am willing to pay the lease upfront buy a good deal, but the deals don't look any better than they ever did. They've offered 0% for years, there are always $2500 to $5000 reductions of some sort. It's just not cutting it. Sell those cars at rock bottom or lease them with 0% down, no money due at time of sale and offer some longer term leases and watch what happens. Americans are sick of parting with reams of cash upfront for a highly depreciable product, maybe the highest.

Joe of CA @ Mar 31, 2009 16:46:48 PM

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Rick Newman

Rick Newman

The global economy is mysterious, even scary. Chief Business Correspondent Rick Newman connects the dots. In addition to his writing for U.S. News, Rick is the co-author of two books: Firefight: Inside the Battle to Save the Pentagon on 9/11, and Bury Us Upside Down: The Misty Pilots and the Secret Battle for the Ho Chi Minh Trail.

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