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The GAMCO Blog |
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May 08, 2008 at 09:51
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U. S. - New Car Sales
As expected, the consumer has reduced purchase of big ticket consumer durables such as autos. We thought we would share several observations that were posted in the May 5th issue of Automotive News:
- “Average auto loan terms have risen from 57 months
in January 2002 to 64 months in March, according to
Edmunds.com data.”
- Also, according to Edmunds, “in February, the average
negative equity – the amount by which the balance owned on
the trade-in vehicle exceeds the vehicle’s value – reached
$4,342, the highest recorded by Edmunds.com.”
Since a large portion of new cars are bought with a trade-in,
declining used car values –traceable in part to economics and
in part to shift in vehicle size – will lead to a continuing
drag on new car purchases.
- How current average wholesale prices of 2005-model
vehicles, by brand, compare with predictions 3 years ago of
what the cars and trucks would be worth today.
| Brand |
Average
Wholesale Price |
Projected
Residual |
Difference |
Mercedes
BMW
Lexus
Dodge
Toyota
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$29,733
$25,607
$23,571
$11,482
$13,531
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$34,472
$28,618
$24,983
$11,981
$13,671
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-$4,739
-$3,011
-$1,412
-$499
-$140
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GAMCO Investors, Inc. ("GAMCO") prepared this posting as a matter of general
information. We do not intend it to be a complete description of any security or
company. All facts and statistics referenced herein are from sources we believe
to be reliable, but we do not guarantee their accuracy and it may be incomplete
or condensed. GAMCO makes no commitment to update this posting and it may remove
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Individuals should consult with a qualified financial professional before
making any investment decisions.
Because the portfolio managers at GAMCO and our affiliates make individual
investment decisions with respect to the client accounts that they manage,
these accounts may have transactions inconsistent with the information contained
in this posting. These portfolio managers may know the substance of the posting
prior to its posting. GAMCO and its affiliates may receive compensation from the
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