Jalopnik poses a pertinent question– at least for semantically-minded pistonheads. How can GM "extend" a 72-hour sale into a 14-day event? Andrew Stoy takes us down the spinmeisters' rabbit hole. "But how do 72 sort-of hours in seven days end up being 72 no-we-really- mean-it-this-time hours spanning a whopping 14 days (Tuesday the 24 through Monday the 7th)? By using the eight-hour workday! First, subtract the weekends; that's minus four days for a total of ten. But ten times eight is 80, you cry! A-ha. Don't forget the Fourth of July, friends. Subtract eight more hours, and you end up with a perfect 72-hour-long 72-Hour Sale. Which is exactly how GM intended it from the start, we're sure." As for the financial implications, it's important to remember that the fire sale prices came at the expense of GM's margins. And while the moved metal bolstered GM's sagging sales– from unthinkable to just plain horrible– there will be a reckoning.Quoted by U.S. News & World Report, Credit Suisse analyst Chris Ceraso predicts the 72-hour sale will generate "some pretty severe payback over the coming month or two."
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What have people been picking up Saturn Sky’s for? If I only really needed a car I might go test drive one.
And the number of people surprised by this…
How bad would June have been for them without it?
No matter what GM says, I still think it’s finally going to end on Labour Day. It’ll turn into some “Summertime keep America working” sale.
Why would I take out a 72 month loan on a car when, in 3-5 years, there will be hardly be any pure gasoline cars on the market anymore? Just need to hang on to the clunker for a little while longer…maybe 2010? And then hop into a good cheap hybrid.
You gotta be nuts to buy a new (pure gas) car right now. Just wait a little longer….
Robstar – buy a Miata or S2000 and be done with it (they will have much better resale value [and properly functioning tops] which will more than make up for the deal you got if you bought the Sky or Solstice).
GM moved some SUVs and trucks apparently with those waiting and couldn’t resist the 0% financing – plus GM’s been allowing trades with people with thousands of negative equity and rolling it into the new vehicle further putting those customers suckers into debt. I think GM is really worried that the new Ram and F150 are around the corner and the Silverado will take a big beating.
Ah. This lesson in GM math explains why their cash flow statement looks like Michael Jacksons.
Matthew: I think the transition away from gas won’t be happening nearly that quickly. For one thing, if the price of gas levels off, people will get used to it again.
Uncertainty about future prices is as bad as the price itself.
Why would I take out a 72 month loan on a car when, in 3-5 years, there will be hardly be any pure gasoline cars on the market anymore?
That’s a little premature, the battery suppliers can barely keep up right now, 3-5 years is not enough time for advancements in batteries and production of those batteries. Sure there will be a lot more hybrids on the market than there are now but they will still make up a relatively small percentage of cars sold in 5 years, 20% at best and I think that is high. Small and efficient gas cars will make up the bulk. My guess is 3 million hybrids(1 million from Toyota) out of a total 14 million sales in 2012-13.
Robstar – if you live in an area with several Honda dealers and want a roadster, take a serious look at the dealer’s prices of the S2000. This is the last year for them (maybe…possibly…hopefully not), but in my area, they are slow sellers. Dealers still have “new” 2007s on the lot. They appear to keep their value also. Leasing is borderline brutal on them – when I was exploring leasing one, Honda didn’t want to touch a 2-year lease and the payments were cheaper to own with an average down payment than to lease.
With the exception of the power hardtop model, MX-5 Miatas are open to “price discussions” also.
And how do the customers who got suckered into buying a GM POS the week before this sale feel about all this?
Nobody likes to feel like they were made a sucker, and every time an automaker throws a fire sale like this it makes the people who bought before the sale into suckers.
But then again, when has GM ever given a rat’s *** about a customer after the contract is signed?
“What have people been picking up Saturn Sky’s for?”
Pontiac has $3000 rebates on the Solstice and they start at a lower MSRP than the Sky, whilst the Sky only has a $1000 rebate. If you really must have one of these, the Solstice is a much better buy for essentially the same car.
John Horner:
Which of these companies does care about the customer after the contract is signed?
Matthew Danda :
July 2nd, 2008 at 10:26 am
Why would I take out a 72 month loan on a car when, in 3-5 years, there will be hardly be any pure gasoline cars on the market anymore? Just need to hang on to the clunker for a little while longer…maybe 2010? And then hop into a good cheap hybrid.
You gotta be nuts to buy a new (pure gas) car right now. Just wait a little longer…
That’s not going to happen any time soon. They are having battery and other shortages of parts now, with hybrids being about 1-2% of new car sales. No way they can ramp that up to 100% in three to five years. Or twenty, for that matter.
Actually, Honda later extended that warranty to 108,000 to settle a class action lawsuit. Even the 100,000 wasn’t enough for some people…
The lawyers made a ton.
On OdyClub.com you’ll find a thread titled, “So, has anyone made it to 75,000 on their first transmission?”