From hybrids to SUVs, unsold cars pile up

[ben_meyers]

Source: Yahoo

LONG BEACH, California (Reuters) – From pricey luxury sedans to popular hybrid cars, automobiles made overseas are stacking up at ports and parking lots around the United States as supplies far outstrip demand amid the nation's worst auto market in more than 25 years.

At the Long Beach port near Los Angeles, Toyota Motor Corp vehicles including Prius hybrids, FJ Cruiser sport utility vehicles and Lexus IS 250 luxury sedans are being stored on a vast construction site that will one day be a new container terminal.

The site became a gigantic parking lot when Toyota and Daimler AG's Mercedes-Benz asked the port for space to store thousands of vehicles that dealerships have not been able to take on due to sluggish sales.

"It's unusual that they would be here longer than a few days, but that's the situation now," said Art Wong, a spokesman for the Port of Long Beach. "They can't move it through their pipeline fast enough so they are asking for additional space while they keep their vehicles here more than a few days, and in some cases more than a few weeks."



Read more: http://news.yahoo.com/s/nm/20081207/ts_nm/us_autos_ports;_ylt=A0wNcxDFOzxJencBqgtZ.3QA

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So who is going to buy all the new cars that the bailed out auto companies build?

[CatholicEdHead]

1. If Priuses are not moving it is pretty bad

Isn't there a long waiting list for them?

[Crazy Dave]

2. Yes but...

If you've been laid off of work and/or don't have a 700+ credit rating then you can't get a loan for one.

[doc03]

28. Have you noticed gas is under $2.00 a gallon? If gas stays down

the American public will want their SUVs. At under $2.00 a gallon the payback for the premium price paid for a hybrid is doubled or tripled. Outside of the Prius and Honda Civic hybrids are really not cost effective at all. I believe it was the Lexus had a payback of 99 years even when gas was at $4.00.

[Lorien]

46. The "premium price" is largely a myth

a Prius has the same interior space as a Camry-and costs as much as a loaded Camry. People who want to kill hybrid cars have been comparing them to much smaller vehicles in an attempt to make them sound absurdly expensive. It's bullshit .One of my best friends transitioned from a loaded Camry to a Prius several years ago. He's now on his second Prius and likes it even better than his Camry-WHICH COST EXACTLY THE SAME. And since he makes a lot of trips from Cleveland to NYC (where his son attends college), he appreciates the gas savings no matter what.it's not JUST about money-it's about emissions and slowing climate change.

Peak oil IS here, so prices will go up eventually. There's not even a question of that. But please, let's start comparing apples to apples when it comes to the Prius.

[sammytko]

62. no, I went to look at them at a new toyota dealer in san antonio

plenty of prius' on the lot.

[BrklynLiberal]

3. Maybe the auto companies should divert some of their manufacturing to railroad cars

in order to help bring our railroads up to 20th century standards....then we can start focusing on 21st Century standards.

[hendo]

32. Americans won't take trains

they don't offer enough freedom

[llmart]

38. They will if it's the only way they can get around......

Look, one thing we're forgetting here (or maybe it's the auto companies that are forgetting this) is that the population is AGING. Us baby boomers may think that we won't ever lose the capacity to drive, but those of us who live long enough will, and that's a huge segment of the population. We also aren't a generation who is content to sit at home and knit. So, if it's between sitting at home or taking public transportation to get out and about, then you know what we'll want. But of course we live in a shortsighted society.

[hendo]

44. Short sighted indeed

i still do not think that enhanced public transportation will work in the US, even though I wish that it would. Denver finished a new light rail system a couple years ago, and it runs well below capacity every day. I have no idea why though, it is much nicer to take the light rail than to sit in Denver traffic. people are just too stubborn to do it.

[Lithos]

40. *laugh*

Actually to take the only available commuter train, I would have to drive past an additional 10 miles more, past where I currently work) just to be able then to ride the train to a point where I can then take a 3 mile bus ride followed by a half-mile walk.

[hendo]

45. so, would you take one

if it were available?

[Lithos]

55. yes

I would.

[hendo]

57. but, as it is

public transportation is inconvenient and cannot get you to where you want to be when you want to be there.

[Lithos]

58. true

It would cost me more money and time to use the available train. As for buses, it would turn a 30 minute 1-way commute costing me about 2 dollars into a 1 1/2 hour commute costing me about 1.5 dollars. The math is horrible.

L-

[hendo]

59. with public transportation like that

it's a wonder its still in business.

[Lithos]

61. I am not its targeted customer

It mainly is geared towards getting people to/from downtown. I live just off downtown and work on the periphery.

L-

[harun]

48. We take them all over the place here in the NE. Wish they had

even more routes.

[hendo]

51. by NE

I am guessing you mean NYC and Boston? It is rather hard to get a train in Vermont, or Maine.

[harun]

54. Yah, I mean Philly, NY, D.C.

[hendo]

56. major cities :)

the US should model it's public transportation after Japan's. You can get from within a block to anywhere to within a block of anywhere.

[Kutjara]

4. And yet I've been to three dealers in the past week...

...all of whom have refused to give me anything more than a paltry 5% or 10% discount on list price for a cash purchase. They're all willing to offer ridiculously attractive credit terms and "cashback" bullshit, but I don't want any of that crap. I'm offering cash and these clowns don't want to know. Gee, I wonder why it's predicted 700 dealers will go broke before Jan 1?

[lligrd]

5. They Don't Want Cash

They are really in the credit business. Selling cars is just a side. I know when we purchased our last car with cash it was hell convincing them we didn't want a loan and that they didn't need to run a credit report anyway.

[Kutjara]

7. I got that message loud an clear.

It was like I was offering to pay them in cold turds, the way they looked at me when I said the forbidden words, "cash purchase." Eyes immediately glazed over and I could practically hear the salesman thinking, "great, there goes 90% of my commission."

[hendo]

Take the loan

negotiate it so that there is no penalty for an early payoff and then immediately pay it off :)

At least that's what I did a few years back.

fyi: it will also help your credit score.

[dixiegrrrrl]

36. Yes....that works. I did it 3 times. Does wonders for my credit score.

[hendo]

33. Take the loan

negotiate it so that there is no penalty for an early payoff and then immediately pay it off :)

At least that's what I did a few years back.

fyi: it will also help your credit score.

[SlicerDicer-]

52. Buy used you will thank yourself later.

I buy used Audi's for instance. I usually wait till they are about 9-10 years old. I buy them with 100k miles on them. Be sure you know how to do work on a vehicle or have a inexpensive mechanic. Once you do this you can start to find really good deals on cars. No matter the make really.

I can pick up a really nice Audi A8 for instance at 5k or so.. Over the next 4 years I have allocated about 2k in repairs. This is a far cry from buying a low end new or anything like that.

I bought a 1993 V8 4 years ago. It cost me 5000$ I spent 1500$ in repairs.. All in all to buy a new civic.. I would be where I would be in 4 years from now roughly.. 8 years 2 cars vs 1 and they are by far nicer...

Least it makes sense to me :) And I am not a labrat for problems in new cars by 10 years old all the kinks are found and workarounds created.

[AndyTiedye]

30. Car Salesmen Are SOOOO Annoying

The need to deal with car salesmen to buy a car is a strong incentive to keep driving the old car a bit longer.

[harun]

49. Me too. Wish they got rid of them.

Just build to order on the Internet and let us go pick it up at the dealership. Better yet just drop it off at the mall parking lot and mail me the keys.

[KeepItReal]

37. I had a preapproved auto loan and had to walk away from a dealership

I found the truck I wanted, but they insisted on running my credit instead of taking the check from Capital One/Costco I had for the purhase.

Fargin sneaky bastages!

[RebelOne]

53. I had a pre-approved loan for 7% interest.

I went to Ford and they ran my credit and approved me for a loan at 6%. Sometimes, it works out to your benefit.

[DJ13]

8. Take out a loan, then pay it off the next week

[LeftyMom]

16. That's the way to go, provided there's no penalty built in.

They have a set amount of money they expect to make. They'll go lower on the purchase price if they think they'll get to screw you on the financing and make their money then.

[amandabeech]

9. Try looking for something gently pre-owned.

Dealers don't usually get incentives on those, and may be more willing to deal, especially as time goes on.

In October, I did a nice cash deal on such a car. It's a Ford, and I love it!

Maybe you'll get lucky, too.

[Kutjara]

11. Thanks, that sounds like a great idea.

I generally steer clear of used cars, but I'm sick and tired of new car dealers acting all high and mighty while standing up to their hips in shit. Going the used route might increase my chances of encountering a salesman who is at least somewhat sane.

[hendo]

34. I doubt it

used car salesmen are usually the slimiest.

[amandabeech]

35. I bought my Ford from the Ford dealer that sold it originally and service dit.

I found that buying used from a new car dealership, particularly the brand that dealership sells, resulted in good treatment. I couldn't be more happy with the dealer.

Among the others, I found it quite easy to tell which ones were too sleazy to deal with. When you don't like the feel of the place, just say "thank you" and walk out. I did that, too.

[Sen. Walter Sobchak]

17. that was certainly my experience

I was shopping for a Honda Accord and offered to pay $17,500 cash on the spot - but nobody would do it without financing it - and would usually figure that was a good time to walk me over to the Acura side of the lot.

My gf's dad found a dealer that would do it - but even they gave me the hard sell for financing "you know, things are getting really bad - you should leave that money in the bank for a rainy day, Take it for $249 a month"

Had it not been so hard to find a dealer willing to do a real cash deal I would have told him "your absolutely right, what the fuck am I thinking buying a new car on the brink of the great depression"

[rangersmith82]

26. Always buy used!!!

get a car 1 yr or so old with a warranty

New cars are the worst investment, especially if your paying cash.

[Sen. Walter Sobchak]

29. The first year depreciation on a civic or accord is negligible

and trying to buy used was WAY too much bullshit for the limited savings on a later model Honda.

[robinlynne]

6. Let's see, wouldn't now be the perfect time to build electric cars and for the

government to give people a tax deduction for buying one.....
and by the way, until 2008 we were giving hug tax breaks to people who bought SUVs, the bigger the truck the bigger the tax break. It amazes me that the dots are still not connected publicly, that no-one mentions the 3 trillion dollars "missing" from the Pentagon, or the billions over billed by halliburton. or the tax breaks given THIS YEAR to ExxonMobil...It is as if the greed can continue to go unchecked, the theft of billions, the theft of our heritage, as if this economic situation is going to get fixed in spite of NOT TACKLING the problem itself..... I mean, for Obama to even consider maintaining Bush's tax cuts given to the upper 1% for 3 MORE YEARS? in the name of unity? Is it feasible? Seems to me the Kenneth Lays of this country need to give back the money, and go to jail. The overseas tax shelters need to end yesterday.....

[ben_meyers]

13. And where does everyone charge up those electric cars?

Are you assuming that everybody has a garage or carport to park in?

[frogcycle]

20. OMG! Yet another minority group to avoid offending!

PWOGs!

:rofl:

[robinlynne]

22. was ist ein pwog? people without own garage?

[frogcycle]

25. da

[robinlynne]

21. Yes I was. but there is a company building 200,000 in SAn Francisco right now.

charging stations for electric cars. All you need is electricity. Here in Los Angeles, there are hundredds of abandoned charging stations from the 90s when it was mandatory to make them here (electric cars). 10% of every fleet sold here had to be 0 emissions. hence electric cars. All it took was a law. A mandtae. the car companies built them, and the waiting list was over 80,000 strong when they crushed them and buried them in the desert....
why/ because they did not need parts, and 40% of the price of every American car is in car parts you will have to buy while owning a car....

[Lorien]

47. Yep, the after market sales are why Detroit has dug in it's heels

having grown up with Fords I can see why; the damn things were in the shop every couple of months (my Toyota hasn't seen a repair shop in five years-and it's 15 years old). I figure that my mother paid for her Granada several times over in repair bills. Electric cars are too durable for greedy auto makers (the same ones who REFUSE to build stainless steel mufflers).

[robinlynne]

50. exactly. and a bailout, without that change to electric would simply continue the same

policy: bad for our environment, bad for consumers, bad for technology, help to create more foreign oil wars... all around bad policy. time for a change!
Oh and as my friend mentioned to me yesterday: How about the fact that it is the big three themselves who are currently suing the government to break down emissions standards!!!!!!!
They are spending millions to undo California law, for example to protect the environment. Yes, that is where our tax dollars should go, into the pockets of those who spend the money
(we would pay in double, because we also have to spend tax dollars to defend the emissions standards, so we get to pay for both sides of those lawsuits if we bail them out!) to move our country backwards toward more and more gas guzzling.

[BelgianMadCow]

10. The major reason for this being for the US market, cars are not produced to order

but to stock. When the market plummets - there you go.

[47of74]

15. It took over two months for dad's truck to arrive

It's a farm truck so he special ordered one because he needed some of the extra features and the dealers around here didn't have anything suitable on hand.

[whistle]

12. Over production of unwanted and unneeded inventories contributed to the great depression

...of 1929 to 1933 and beyond. Stupid decisions by top management, the dead fish rots from the head first!

[Sarah Ibarruri]

14. They should offer them at a lower price

I need a new car (mine is old and creaking) and I'd love to buy a new car at a reasonable price.

[robinlynne]

23. you would think.....

[Sarah Ibarruri]

27. You would. They can't do anything with them if they're not selling

Why don't they just sell them for less? They'll get something out of them.

[CRF450]

42. Some dealers are doing just that.

I was checking out the Dodge Dakota's at a Chrysler dealer. For the fully loaded trucks that normally costed 30 grand, the dealer was offering them for right around 20 grand.

[msongs]

18. supply & demand - 1/2 price sale would clear inventory : -) btw re loans

I bought a ford ranger on a dealer loan. got a great price. paid off the loan in 2 weeks as there was nO prepayment penalty.
it's a good strategy.

If you leave a dealer cuz they wont deal with you, tell em you'll see em when they go out of business!

Msongs

[OhioChick]

19. No job equals no money for a new car. n/t

[rocktivity]

24. As you've all shown, all the bailouts in the world won't help

if people can't or don't want to buy the cars.

:shrug:
rocknation

[ohio2007]

31. The people didn't beat a path to the electric car manufacturers door and they went out of buisness

Nancy made no offer to bail out that transitional step industry


http://www.dailytech.com/Electric%20Car%20Sales%20in%20Freefall%20Industry%20Risks%20Collapse/article13601.htm

At least Saudi Arabia has discovered more oil deposits so the threat of peak oil prices should remain over the distant horizon during the legnthy recession

[customerserviceguy]

39. All I know is

that I flew into Portland, Oregon on Thanksgiving Day, and the plane took a quick twist over the Port of Vancouver (Washington) docks, I saw them completely full of cars glinting in the limited sunlight. I know a lot of Asian companies offload there, I would imagine that car dealers and manufacturers even from overseas are eager to clear those docks as fast as possible.

Zero interest for three years ain't gonna cut it, I would expect them to offer zero interest for a normal financing term (5 or 6 years) and fat rebates, too.

[bluecollarcharlie]

41. You know what bugs me about this?

For weeks us autoworkers were saying that the market situation was such that NO ONE was unaffected by the current challenges; not GM, not Toyota, not Volkswagen. And all that got us was "Let 'em fail." Now that the facts are in and the truth becomes more clearer, will you believe us when we say that a bankruptcy filing would be an economic atom bomb?

[tammywammy]

60. Actually Volkswagen is fairing the downturn well

October sales were only down 7.9% from last year and for the year are only down 0.6%. Volkswagen expects US sales to stay flat this year and actually go up next year.

[notadmblnd]

43. Oh, so it's not just those American made gas guzzlers assembled by over paid workers

that aren't selling? Gee who'd a thunk it?:sarcasm: