2 thoughts on ““Carmageddon” Continues…. [Video]”

  1. Don’t forget the hit to government revenues with the drop in car sales.

    Bank in 2000 I worked for a Saab dealer and a new Saab convertible landed before duties and taxes cost $21k with an RRP of $63k of which the dealer would make $4k profit, so government income of $38k or 60% of the RRP.

    And these taxes, duties, registration and other government fees have increased.
    As with stamp duty on property its impact on government income is much larger than people realise.

    It’s going to be an interesting year as I expect up to 30% of current car dealerships to close, there are too many of them. Word I get from senior people in the car game is not only are sales down but workshop income, this used to be the core income stream, has gone and most dealers no longer want to have to offer service & repairs.
    So as a business model:
    No income from the sale of cars due to too much competition.
    No income from finance & insurance.
    No income from the Service Dept.

    I’m told in both Sydney & Melbourne a number of dealerships are for sale on $1 “walk in walk out and the new owner takes on all financial liabilities” basis.

  2. Expected figures for a recession.
    That was after the crash.
    This leading into the next crash.
    ….Or just slow strangulation.
    Just as well we we got rid of our car industry, cos we can’t afford cars anymore. Such foresight!

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