We can deal if someone else pays the way
As one of the few that has never purchased an automobile (ever), I remain bemused by the variety of marketing campaigns and strategies used to lure the helpless consumer. There’s been a subtle variation added to the palette recently, and I’m wondering if this one is going to be “the best one ever”. In short, the average buyer is at risk of losing her job in this foundering economy. The response of the industry is to offer to “cover your debt” for a certain amount of time. Just like the Big Three has asked the government to do for them. Talk about spreading the new riches around.
Years ago, there was a sticker price for a car, and there was a saleman. You went in, pretended (like a fish) to be interested but only a little bit. He pretended to be interested in selling you the best car in the world. You danced. You had staring contests. You finally agreed to a deal, although the salesman always seemed to win. Business as my father knew it.
Then, along came the cashback offers we’ve seen over the last few years. Suited for a media audience, you still thought you were getting a deal, but the amount was quantitized. The mysterious MSRP (the acronym escapes me, but it has something to do with a price that nobody has ever paid, anywhere in the galaxy) was just high enough that (as usual) the automotive industry always won.
And then, along came the recession that might be a depression if the politicians ever agree on what will sell in your neighbourhood. Suddenly, the price point no longer mattered, because cars simply weren’t selling. Dealers mention figures like “20% less than last year” for their quota numbers. Car lots, full to the fences. Now the game is starting to change. There’s been a call for “sell your old car to scrap and take a generous government subsidy to buy a new one”. Or how about “we’ll make your payment if your job goes AWOL”. The pattern still requires tax dollars, but it’s a new paradigm. In passing, I’m not going to buy a car, regardless.
