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Im in the process of buying a car when it suddenly struck me that I might perhaphs be doing the wrong thing here. There's already talks of a recession... is there any good cause to believe that the recession will cause a reduction in the auto prices? Im looking to buy an entry level sports/luxury sedan - the infiniti G35 to be precise. If the prices do go down, how long before it happens? Is it worth the wait? What are the prices that people get nowadays around NJ, invoice, below invoice, above invoice- by how much?  

vik_kid:
Im in the process of buying a car when it suddenly struck me that I might perhaphs be doing the wrong thing here. There's already talks of a recession... is there any good cause to believe that the recession will cause a reduction in the auto prices? Im looking to buy an entry level sports/luxury sedan - the infiniti G35 to be precise. If the prices do go down, how long before it happens? Is it worth the wait? What are the prices that people get nowadays around NJ, invoice, below invoice, above invoice- by how much?

I certainly hope the recession brings down prices much in the same way its doing in the home market.

Also, I think Infiniti is offering some incentives right now.  

Happen to see your post.  I was  looking at the G35 also.
I test drove the 3.5 Altima Coupe and was blown away. It was not as fast but it drove smoother to me and for $10,000.00 difference it was worth it.
Just my opinion check it out.  

I deliberated over the issue of buying new vs. used. I ultimatedly decided to buy used. The thought on losing thousands dollars due to depreciation so soon was distasteful to me, although a purchasing a new car would have given me a little bit more peace of mind.  

recession? what if theres inflation - then the price of the car will go up!

there are two different sides to every coin (except those trick coins)  

I think we can thank (although it's a double edged sword) the automotive industry for heading into early panic mode over the economy. They did a great thing for the "average" consumer about 4 years ago with the invention of "Employee Pricing". The result was a flood of cars on the road which A) would normally not have been there, and B) which were beyond the buyers typical comfort level.

As an example, for me (since I just had to buy a car after an accident), I was able to pick up a 06 300C with an MSRP of $42K for the lovely price of $14,500. Even after all the extras I wanted, the taxes and the licensing it was still under $20K. Magnificent!

What is happening is th panic driven commoditization of the product line. In simple terms, by dumping new vehicles on the market in a panic over the sub-prime the manufacturers have made the product worthless (essentially). And because of the proliferation of the automotive lease, the manufacturers are then left with a surplus of product which is worth less than what it was written down to forcing liquidation to extract liquid capital (keeping the shareholders happy). This in turn just devalues the new product line and weakens the manufacturer to the point that they have to continue the downward liquidation cycle.

The end result is the answer to this question:

Why would you pay 50K for a car you can get for less than $20K given that the buy out on the lease will be 25% higher than what the car will be worth when you can just go get the $20K car which will last you the same four year period and the rate difference is only prime + 1?

Of coarse, less purchase price means less margin which means less ability to keep top heavy labor and of coarse less chance of doing battle with oversees markets. But the dealer probably won't tell you about that part.

How was that for non-sequator theatre?

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