Wednesday, March 9, 2016

USA Imports: Fewer Cars, More Parts

Here we have some data that may be a trend, and that is fewer whole cars imported, but more car parts. In econ downturns, people repair instead of replace.  USA car dealers are unloading excess production by means of subprime auto loans, against which it is is hard for foreign automakers to compete.

Another item without hard daa yet is how many people are taking advantage of UBER's guaranteed auto sale, if someone has passed the UBER qualification.  It works like this: pass UBER driver qualification, and you cannot be turned down for a car loan with the dealer.  The car must be less than 4 years old (meaning at least $12,000 and up) and your auto payments must be made weekly out of your UBER earnings.  The trick is interest rates may be 20 + percent.  How many people end up a slave to their UBER car?  As an aside, I witnessed a woman who was buying a car explain she was not going to drive for UBER, there was just no other way for her to get a car her credit was so bad.  The UBER rep said "no problem." (So there is an exception to the payment out of UBER earnings?  Does UBER not car for it gets a cut of the interest?) Wonder how common that is, wonder how that worked out for her.

Anyway, parts vs whole cars:

If the trend continues, auto repair is getting better as a biz.

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