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josh1147 · 05-18-2009, 08:43 PM

Ok,

Let's get a little academic on this topic. I've read through all the posts so far and I see very few people who have brought up or understand the Micro and Macro economics associated with this situation....nor would claim to know and understand them completely.

What I do realize is that the American population is for the most part selfish. Anyone who thinks GMAC should offer 0% financing should be taken out in the woods and shot.

Have you all forgotten they are operating off of loans that WE are financing to them? Don't you want your money back? I do, and I want it back from those a-holes on Wall Street too!

The past 5 years of 0% loans have been part of the problem. They have allowed people to buy cars that they otherwise could not have afforded and have eroded the operational capital of the manufacturers.

Zero financing has also caused unrealistic consumer expectations regarding what they can afford and how often they can afford it...and this applies to more than just cars.

Finally, the manufacturers have adjusted their production to meet demand. I suspect that some economists would argue this is artificially inflated demand caused be the unrealistic consumer expectations for price/financing and self-serving immediate gratification. Yes, a vicious loop.

This has caused HUGE amounts of excess inventory, excess personnel that need to be laid off, and suppliers that now have excess inventory and reduced demand for their parts...causing them to lay off personnel, etc. Due to the massive size of the auto industry, the ripple effect is huge.

So before you start "flaming me" for this post, think about the last think you bought. Did you really need it? Was it purchased with discretionary income or are you delaying by extending your credit further? Could you have done without it for another month....another year?

The American consumer needs to "slow their roll" and consider saving prior to buying large ticket items, like cars. It's not hard to plan ahead and save money, especially at the slow pace GM is delivering our camaros.

Flame away.....

05-18-2009, 08:43 PM	#59
josh1147 Delivered 29June09 Drives: Early Order Camaro Join Date: Nov 2008 Location: St. Louis, MO Posts: 411 View My Garage	Ok, Let's get a little academic on this topic. I've read through all the posts so far and I see very few people who have brought up or understand the Micro and Macro economics associated with this situation....nor would claim to know and understand them completely. What I do realize is that the American population is for the most part selfish. Anyone who thinks GMAC should offer 0% financing should be taken out in the woods and shot. Have you all forgotten they are operating off of loans that WE are financing to them? Don't you want your money back? I do, and I want it back from those a-holes on Wall Street too! The past 5 years of 0% loans have been part of the problem. They have allowed people to buy cars that they otherwise could not have afforded and have eroded the operational capital of the manufacturers. Zero financing has also caused unrealistic consumer expectations regarding what they can afford and how often they can afford it...and this applies to more than just cars. Finally, the manufacturers have adjusted their production to meet demand. I suspect that some economists would argue this is artificially inflated demand caused be the unrealistic consumer expectations for price/financing and self-serving immediate gratification. Yes, a vicious loop. This has caused HUGE amounts of excess inventory, excess personnel that need to be laid off, and suppliers that now have excess inventory and reduced demand for their parts...causing them to lay off personnel, etc. Due to the massive size of the auto industry, the ripple effect is huge. So before you start "flaming me" for this post, think about the last think you bought. Did you really need it? Was it purchased with discretionary income or are you delaying by extending your credit further? Could you have done without it for another month....another year? The American consumer needs to "slow their roll" and consider saving prior to buying large ticket items, like cars. It's not hard to plan ahead and save money, especially at the slow pace GM is delivering our camaros. Flame away.....