The economy is down, but help is on the way.
Gas prices are high, but they seem to be looking better than they have in recent months.
Competition is tight, but both the OEMs and other dealers are doing things to bring that level down a bit.
Overall, it appears that the automotive industry is ready to be rejuvenated in the coming months. Before the skeptic in all of us starts chiming in, consider the following points:
- People need cars. The fact that fewer people have been making purchases lately does not change the fact that they need to. It isn't that they have decided not to buy at all. As with many markets, car buyers are simply holding out. They are holding their breath, waiting to see what is going to happen next. That is making it difficult now, but it's simply a bottleneck. They will be buying again. Soon.
- Lenders need people to loan money to. It's their business. With the credit crunch the way it is right now, it's hard to get the same paper bought that was being bought this time last year. Financial institutions are tightening up, but this has happened before. What happens when they tighten up? Eventually, they have to open back up. They can't survive without interest rolling in. It's just a cycle.
- Technology is catching up. Almost every OEM has exciting stuff coming down the pipe. The rejuvination of the model lines and adjustments to appease a more frugal and gas-conscious consumer has elicited a response from the manufacturers to meet their needs. With new models and new technologies comes old and new customers.
- The election is near. Regardless of the winner, there will be an instant effect on the car business that will most likely be positive in the short term simply because it's a change. It's symbolic. Whether you are hoping for McCain or Obama, both represent a change from the current situation and will create some sort of boost in the industry. How long that boost lasts will depend on the winner, but either way, the short term effect will most likely be positive.
Hang in there. Times are bad now, but there are factors in play that are working on making it better. It's not as far off as you probably think.
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