The Collapse of Consumption?

So, A while back I was reading Steve Clemmons’ blog, The Washington Note, and he had a very interesting piece about the recent downturn in the economy (and when I say downturn, you should read it “near-complete collapse”).

Normally he doesn’t write about stuff that would relate to AutoMoBlog, but this post talked the current economy through the lens of auto sales.

Here’s the quote that jumped out at me:

“Showroom visits by potential buyers are down 50% this month as compared to last year, and sales of new automobiles by General Motors, Ford, Toyota, and other dealers are down by 33% on average when compared to last year. … This is about consumer confidence — the absence of it.”

FIFTY?!

Yeesh … that’s a BIG drop off. Especially when you couple it with new car sales falling by a third for the big three (sorry Chrysler, but you’re not on the podium any more).

I guess things are very serious if those numbers hold, and at the moment, there’s no reason why they wouldn’t.

This presents a couple of interesting scenarios for the gearhead … other than the complete societal collapse/Mad Max scenario.

If this hits real hard, five years from now, cars like Challengers and Camaros and Shelby Mustangs will essentially go extinct.

I remember when the first real oil crisis hit in the early 70s, and it seemed like over night all the hemi ‘Cudas and big block Malibus vanished in a puff of (horrors) 60 cent gasoline. My dad said, “If I only had some land and a quonset hut … ”

Have you seen what muscle cars are going for these days? A prescient thought from my dad, no?

The other thought that occurred to me was that even if people can afford to buy cars, the balance of car sales will tip more towards the used car end of the spectrum.

So, my fellow gearheads, I’d say that (in addition to stocking up on cash, gold, MREs and ammo) now might be a good time to start considering what used cars are out there that are still fun.

Source: The Washington Note

Filed Under: Car News