When you talk about economic downturn and reduced disposable income, you're talking about the public as a whole. The pubic as a whole buys things like milk and bread, not Audi sport coupes -- unlike commodity items, maybe only 5% of the population was looking at buying a $50k luxury sport coupe. Even if a poor economy changes the buying habits of half of the overall population, there is a good chance that most of the 5% that were going to buy the A5/S5 were not part of that group.I also agree with the simplistics of supply and demand but was thinking that maybe the economic downturn might reduce the demand (Due to most consumers reduction in available capital to spend) and hence decrease msrp.
Why can't more people be like that. Sure the world econ is having problems, but if I have to hear anymore end of the world stories in the news... It's like throwing explosives, not gas, on the fire. Sorry, Financial Advisor, this panic thing is driving me mad.The gas reference was a bit of a joke, although it is coming down. It is nice now that I don't have to run the debit card twice to fill up the wife's Suburban...it doesn't cost over $100 to fill it up anymore with the pump shutting off at $90...
If you are having heartburn about the $$, then it may not be a good time to buy the car. I am not a financial advisor, and my strategies seem to be counterintuitive at times, like buying high to then sell low... All I know now is that in a down cycle, it is a good opportunity to have cash and buy low...only to then sell high when the market turns back up. All a cycle, just knowing when to pull the trigger on both low and high end is the key. Seems likely that if you are in the market for a $60K car, then the downturn shouldn't be that much of a factor, but rather a good buying opportunity.
This IS a presidential election year in the US, so get used to the panic. Interesting that 2 months ago the economy was showing signs of life, although not being reported. Now that we are close to the election date, all you hear about is gloom and despair. I contributed to the economy by purchasing an S5 (even though I ordered it last year)...so I am choosing not to participate in the hysteria. And there are reasons they call them 'brokers'...Why can't more people be like that. Sure the world econ is having problems, but if I have to hear anymore end of the world stories in the news... It's like throwing explosives, not gas, on the fire. Sorry, Financial Advisor, this panic thing is driving me mad.