General Motors has declared bankruptcy. All the big car manufacturers have received billions of dollars in aid. Nonetheless, people are still losing their jobs, not only those directly employed by the car companies, but also those employed by suppliers… tires, wiring and so on.
In Europe, things aren’t much better. A Honda plant was only just reopened in England the other day, after four months of being closed. Germany and France are both trying to stimulate the new car market with what is called in France ‘la prime Ã la casse‘ or a junkyard bonus, where buyers of new cars get a set amount of money for trading in their old cars, destined for the junkyards. Interestingly enough, new car sales increased by 12% in France in May, although most of that increase is attributed to people waiting for the new license plates to be released in the middle of the month.
Some pundits are saying that the car manufacturers are failing because they weren’t delivering the products that people want to buy. I’m no financial expert, but I do know that in my own case, we wouldn’t have enough money to buy a new car.
Nor would I want to buy a new car, because I don’t feel it’s the right situation for us for a number of reasons- mostly because I feel like the kind of car that we would buy would cost much more than money than I would feel happy about paying for anything that didn’t have walls. For the moment, luckily, we don’t have to make that choice. Both our cars, dinged up as they may be, are running well at the moment (knock-on-wood!).
So what’s the plan? Well, I suppose holding my breath and hoping really hard that nothing bad happens isn’t much of a plan. But for the moment, that’s what it is, although I do hope that writing this post isn’t tempting fate!. We’re just making sure that both cars are really well maintained, and when the second one gets paid off next August, we’ll put that payment towards a savings fund to replace it.
So would you buy a new car right now? Why or why not?