Growing Stockpiles of Unsold New Vehicles

Yeah Mick !! They are about 10 grand overpriced. I bet there are many like you waiting for the price to drop.. Michael

Mick, I have seen the prices offered but didn't actually take note of the reduction. 200 Series too.

My understanding is that there is still a long waiting list for the LC200, at least in diesel form. The petrols have always been readily available and deals have been offered from day one.

Since I have a VX diesel, I will be filthy if they drop the price and talking of overpriced, as I have said once before, the LC100 was horribly overpriced. I paid...(stupidly) $96K for a GXV V8 in '98, first cab off the rank..the only extra was the V8 and IFS over the GXL which was $65K. Now wind that forward to 2008, and even the new GXL is cheap by comparison considering levels of equipment. The petrol V8 GXL is $69K now and a far better vehicle than the LC100 4.2l straight six was 10 years earlier and my current 200 VX is streets ahead of my '98 GXV in every respect...diesel..(and what a diesel) levels of equipment both safety and luxury)and...it was $91OTR...$5K cheaper and 10years later....still expensive but a bargain in comparison...

Don, it depends where you look for the diesel. Last one I saw at this place was a GXL, but I have seen a Sahara at the same dealership. I have also seen a V8 ute there.

HI Isuzumu,
It will be interesting to see how all this develops. Manufacturers have really only 2 options to reduce inventory - close the factory for a period (even Toyota is doing this in March - closing all factories for 11 working days) and or reduce wholesale prices to try to increase sales. I suspect they will do both at some stage - keep production going to keep jobs in place and sell at breakeven price or even a loss for a period if necessary.
Australias problem is our weak $Aus which is continually putting upwards pressure on import prices.
But if I was in the market for a new imported vehicle I think I would wait awhile yet - I think the worst (of this economic downturn) is still to come. Stay cashed up and be ready for a bargain....
Cheers,
GPM

Bruce,

I always find it interesting hearing Dick Smith pontificating about financial problems and his big "Buy Australian" drive.

The man made his fortune importing cheap Asian electronic and electrical goods and making a motza selling them in his stores.

Then he flooged the business.

Smart Man, but I find his rhetoric somewhat hollow.

Cheers,

Jim.

"Australias problem is our weak $Aus which is continually putting upwards pressure on import prices."
I don't see that as being a problem. On the contrary, if our dollar hadn't dropped there would have been blood on the streets and many more Pacific Brands like examples than we already have.

Bob, you have taken things out of context. Rather than write a 10 page treatise on the impact of a low $Aus on the Australian economy, I merely stated that any reduction in wholesale prices of new vehicles by the overseas manufacturers will be reduced by the weak $Aus which is putting upward pressure on the prices of imported goods. It is completely irrelevant to bring into the discussion what impact a weak $Aus dollar has on other sectors of our economy. In other words I am referring to the problem of Australians getting maximum benefit from any reduction in wholesale vehicle prices overseas (that is Australias problem I referred to).
If you dont see the weak $Aus dollar as a problem in this context, then Im sorry, but you dont understand the basics of economics or exchange rate mechanisms.
Cheers,
GPM

An interesting topic…

I suspect the way forward is a reduction in inventory through plant closures for periods of time (as indicated earlier) rather than wholesale price reductions.

The issue isn’t so much the actual price of the vehicles, rather people do not have the confidence in this environment to go out and spend money on a new vehicle. This is particularly the case in the US where confidence is through the floor; people are not confident they will have a job.

Consumer sentiment surveys taken locally (Australia) are painting the same picture at present. People are reducing household expenditure and whilst some will be looking to purchase new ‘big ticket’ items like a car, mainstream consumers are looking to save and pay down debt, not spend money. So price reductions may achieve very little as those with the money to spend on a new motor vehicle will most likely do so in any case.

Of course, waiting for price reductions is part of the problem now; why buy it today if you think it will be cheaper tomorrow….a real dilemma for policy makers!

Baaahaaahaaahaaahaha .......

>wipes tears from eyes<

Pricing is simple , you charge what the market will bear . If that price exceeds your expenditure you make a profit and stay in business .

Expenditure on junkets is a very minor item that the orderly minded manager finds by screwing the junket goers out of in pay and conditions and unpaid overtime . When the ' float ' reaches , say , $100,000 , he spends $50,000 on a junket . The party goers don't realize that they have paid for the junket and they think the boss and the company are wonderful .

Check this link

Hi Lex, thanks for the link.

I'd actually read that, it is the same as the original one Saharaman put up.

Perhaps my musings weren't quite as clear as they could have been.

I was thinking if the Japanese who can sell cars in the US at a profit have this many laying around imagine how many Ford, GM and Chrysler would have if they aren't selling cars and haven't been making money for years!

Geoff