The Economy - Ugh

[jdm2000]

Another day of bad news. I assume at some point it has to get better, right?

- GM and Ford sales continue to crater
- US Manufacturing at 26 year low
- Circuit City to close 155 stores, considering "options"

I don't know why I bother going to www.cnbc.com anymore.

[jdm2000]

Ouch -- I didn't realize sales at Toyota were down 23% and Honda 25% last month. Bad times to be selling cars, I guess.

[xeus]

I fully expect Circuit City to file for Ch 11 protection. They're about to be delisted from the NYSE, and Ch 11 will get them out of those 155 leases. It's really their only option, especially given the prospect of a weak 4th qtr.

[drudy23]

I fully expect Circuit City to file for Ch 11 protection. They're about to be delisted from the NYSE, and Ch 11 will get them out of those 155 leases. It's really their only option, especially given the prospect of a weak 4th qtr.

Does that mean TVs will be really cheap as they are closing shop?

[xeus]

They'll mark down older and obselete inventory but I assume they will transfer better selling and higher ticket merchandise to other stores in the market, which is why they are doing this now - 4th qtr gives them the best chance to move it. And some merchandise is likely returnable to the vendor, i.e. dvd, video games, other media.

I noticed they are closing the store in Westwood. They are probably happy to get out of the west side, where more people steal TVs than buy them.

[drudy23]

I noticed they are closing the store in Westwood. They are probably happy to get out of the west side, where more people steal TVs than buy them.

We have to steal them...our only other option is Rent-A-Center.

[XUglow]

I am car shopping right now, and I am really being courted by everyone. Getting deals on Hondas is next to impossible here, but they came off a lot on the car that I test drove last week. I liked the car but didn't buy it, and they called me earlier today and asked me to make them an offer. Deals on Chevys and Fords are ridiculous. I went into the Toyota dealership on Saturday, and it was me and 6 sales guys looking at the inventory. It is sort of sad, but I know that I am going to end up with a sweetheart deal when I do buy something.

[xeus]

I am car shopping right now, and I am really being courted by everyone. Getting deals on Hondas is next to impossible here, but they came off a lot on the car that I test drove last week. I liked the car but didn't buy it, and they called me earlier today and asked me to make them an offer. Deals on Chevys and Fords are ridiculous. I went into the Toyota dealership on Saturday, and it was me and 6 sales guys looking at the inventory. It is sort of sad, but I know that I am going to end up with a sweetheart deal when I do buy something.

I assume you take Miss Muskie along with you when you are car shopping. That would guarantee you the sweetheart deal.

[Kahns Krazy]

We have to steal them...our only other option is Rent-A-Center.

I used to be very confused when my westside friends would ask "what's the weekly?" when I bought a new TV.

[Kahns Krazy]

Glow, what are you looking at? I drove a couple hondas earlier this year. My current honda is close to being old enough to get its own driver's license.

[XUglow]

I am looking at a 2-door Honda Accord. I fit in those seats like a glove. I am also thinking of being environmentally friendly and getting the Honda Civic Hybrid. Its a nice looking little car. I have been given quotes on both. I am not sure what I think about the big headlight on the 4-door Accord. Toyota is building a Prius plant in town, but nothing will roll off of that assembly line until early 2010. Buying one of those would be practical and civic-minded.

I gave Miss Muskie my RX-8 last year. She keeps telling me she will give it back some day but I am not holding my breath. I will give the Dane my Saab so she will stop parking that clunker of a Cavalier of hers in my driveway. I think there is a covenant against Cavaliers in driveways in my neighborhood.

I don't know. Cars used to be distinctive. Now, thery are all very much alike. I love the new Volvos, but after my Saab experience, I am not going to buy a car where I am more than 5 minutes from the dealership. I am getting too lazy in my old age.

[XU05and07]

I am looking at a 2-door Honda Accord. I fit in those seats like a glove. I am also thinking of being environmentally friendly and getting the Honda Civic Hybrid. Its a nice looking little car. I have been given quotes on both. I am not sure what I think about the big headlight on the 4-door Accord. Toyota is building a Prius plant in town, but nothing will roll off of that assembly line until early 2010. Buying one of those would be practical and civic-minded.

I gave Miss Muskie my RX-8 last year. She keeps telling me she will give it back some day but I am not holding my breath. I will give the Dane my Saab so she will stop parking that clunker of a Cavalier of hers in my driveway. I think there is a covenant against Cavaliers in driveways in my neighborhood.

I don't know. Cars used to be distinctive. Now, thery are all very much alike. I love the new Volvos, but after my Saab experience, I am not going to buy a car where I am more than 5 minutes from the dealership. I am getting too lazy in my old age.

You looking to buy or lease? I have been in the market and have been a good deals on leases and buys, but I can't decide

[Kahns Krazy]

12, My advice without knowing anything about you is that unless you own a business for which you can take a tax deduction on a leased car, you're almost always better off buying.

There are a few exceptions, but I know far more people that have regretted leasing than buying. Most of those were attracted to the fact that you can get more car for the same monthly payment on a lease. These are the same people that were attracted to negative amortization and interest only mortgages on the west coast.

I would very, very strongly advise against any lease that doesn't have a pre-negotiated fixed price buyout option at the end of the lease.

Glow, I'm in the same camp as you on the headlight/taillights on the Accords. I drove the Civic and was really impressed.

The problem I'm having on pulling the trigger to get a new car is I'm still getting 35 mpg on average, and 40 on a road trip out of my 14 year old 4-banger civic. I only drive about 6,000 miles in a year. I just can't seem to justify sinking any kind of money into something.

[drudy23]

I have been in the market

I don't why, but I really friggin hate this saying. Can't we just say "I want to buy a car?" Does "corporate speak" have to infiltrate everything?

Are you engaged with your deliverables while you think outside of the box? Is it mission critical? Did you run this by the sponsor and stakeholders?

Why can't we just talk normal?

Sorry...had to rant.

[ATL Muskie]

We bought a Civic Hybrid last spring. The wife drives it. She loves it. It's OK, but it's not for me.

[XUglow]

ATL, thanks for the comment. I guess it is hard for me to see myself going from a 9.5 Turbo to a Civic. I am buying. I have done leases before, and that really isn't the way to go unless there is a very sweet lease deal that is just too good to pass up.

[Stonebreaker]

I'm going full green. Can I get a push?

http://blog.text4cars.com/wp-content/uploads/2007/10/flintstone.jpg

[waggy]

Despite the fact the manufacturers are super motivated, the most economical purchase is almost definitely used. Have to shop a little harder, but the used market is flooded with late model cars.

[cinskyline]

Having worked for Circuit City for 4 years (I'm no longer there), I can tell you that they have a lot of problems. They've been poorly run for several years now, while driving customers away. In this economy, mediocre companies are going to be exposed, and that's what's happening to CC now. I expect a bankruptcy filing soon, especially since their vendors are now tightening CC's terms and credit.

[waggy]

I'm surprised they've lasted as long as they have. I would have thought that internet sales of electronic goods would have killed the stores that have to pay higher rent, more employees, etc. even in a fair economy.

[Stonebreaker]

Circuit City has always appeared to be poorly run. This is why my family has gone to Best Buy for the last decade.

[nuts4xu]

Up the street from where I live, there is a CC right across Fields Ertel from Best Buy, and I don't think I have ever even walked into that CC location. I have spent over a grand in that Best Buy over the past year, however, and find everything I need at that store.

[xeus]

I fully expect Circuit City to file for Ch 11 protection. They're about to be delisted from the NYSE, and Ch 11 will get them out of those 155 leases. It's really their only option, especially given the prospect of a weak 4th qtr.

Good call xeus. (http://biz.yahoo.com/ap/081110/circuit_city_bankruptcy.html?.v=2)