The NEW Landscape of Americas Auto Industry!

GM has been out of Bankruptcy for less then a week and Chrysler has Barley been out for a month but Already TIMBO geitner is Proclaiming the Recession is EASING, that hardly seems true in Soldotna, AK (my market). I read a study the other day that said Americans are less stressed now then at the beginning of the year. Really, maybe it is because Americans are flocking into the bankruptcy courts along with General Motors and Chrysler! The reality is that NEW cars still aren't selling and Used vehicle values are being driven somewhere north of Yellow Knife Canada. Dealers are having to pay RETAIL or close to for Clean used vehicles, the result is almost every customer having to come up with down payments to cover the discrepancy between the price paid and (not yet adjusted) book values. This is a long departure away from the biz in 2007 or even most of 2008 when customers were getting deals below retail values and often didn't have to mortgage the house again for a down payment. you may be asking yourself what all this means, well does anybody remember the housing bubble? as Used Values Stride upward towards there New counterparts there WILL be a mass justification by the consumer to buy new. after all the manufactures can offer huge incentives on financing not available in the used market and now lane doe is sitting there saying should I pay 450 a month for a used car or 490 for a new car. that would be the difference between 3,000.00 dollars and incentive rates probably 3% below whatever a credit union or bank could offer! NOW were stuck in a pattern of the Used car market going bust with slumping values and all those people who elected to buy NEW are now buried under a mountain of negative equity much like we saw in the middle 2000's. Is there a solution here that could stop all this, I am sure there is but I don't have it this is just a very educated opinion of what the future sales market will bring. Maybe Barack and TIMBO can help us out on that one too!