Automotive Industry Update

Summer, 2010

I hope this finds you in good health and spirit! Time again to update/address many of your concerns and inquiries over the past few months, to "fill in the blanks" (I am going to use some old clich├ęs today).

Many of you have voiced "I thought it was a buyers market."

Many of you have experienced, well for lack of a better word, 'Sticker Shock or lease payment shock'. Not so much as to the actual MSRP and/or pricing of vehicles, but that you cannot get the same "bang for the buck"....

Or the chant, "Chris, I leased my last vehicle for __X__ a month, __X__cash, why are they so much more now???"
I hear these questions all the time!!

The simple answers to these issues are:


First, we all know the dissertations of our world economy, so I stop here on that. However, here are the specifics on your concerns to Automotive Marketplace.

America went from 16 million vehicles sold a year to 10 million. This leads to manufacturers building fewer cars, thus the huge rebates and fire sales are gone, and this is GREAT for America and the economic recovery, it is a responsible business model!!!


There are very few banks that will facilitate Automobile leases any longer. In fact in most cases the only "entity" that will lease you a car (or even finance) are the manufacturers' lending institutions (i.e. Lexus Financial Services, not Bank of America, Chase, etc).

Like anything else when many entities would fight for your business, special deals were abundant.


The market place adjusting was a must and long overdue. As the manufacturers continue to fine tune their business model, you will continue to see less and less stock on dealers lots, and fewer rebates, etc.

Yes because dealers must turn inventory quickly to stimulate cash flow.

Yes because there is a shortage of used cars and your trade is needed! Huge volumes of used cars have made their way out of our country for many reasons.

YES because this is when manufacturers are going to apply their strongest incentives and money rates (Lexus's Golden Opportunity Event is an example).

I am here to answer any questions, and is here for any of your automotive needs.

Hoping to hear from you soon.


Christopher F. Abrahms
Your Automotive Sales Professional
(818) 558-5008 office
(877) 232-4877 toll free
(818) 388-5291 cell

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