It’s being speculated that this is the worst time in the automotive industry in over 15 years. Fuel prices are at record highs, large vehicle values at record lows. It’s difficult to turn on the TV, your computer, or open the newspaper without reading some dismal news regarding the economy, fuel prices, etc.
Chrysler recently announced that as of 8-1-08, they will no longer lease vehicles. General Motors may be considering the same. Monthly losses each of these manufacturers incurs are into the hundreds of millions per month. They are searching for ways to stop the bleeding. Even Toyota, arguably the world’s strongest automotive manufacturer is reporting that sales are down over 12% YTD for 2008. Through June 2008, only one auto maker is reporting sales increases; American Honda Motor Corporation.
American Honda is increasing production forecast of vehicles 9.7%. Honda cars are selling at record levels because of several factors: 1. Honda has the highest resale value of any automobile manufacturer producing cars in the United States today. This is partly due to the fact that a Honda will have a longer life than most of its competitors. 2. Honda has had the highest fuel economy of any manufacture producing cars in the U.S. for years, and 3. Honda has one of the lowest ownership costs of any vehicle on the road. Consumer Reports recently released an article directly comparing the Honda Accord vs. the Hyundai Sonata. The article stated that you can buy a Sonata for approximately $1500 less on average than an Accord, but they then proceeded to explain that the Sonata will cost you approximately $2500 more to own than the Accord over a 5 year period. This is due mainly to maintenance cost required on the car (that are not covered under warranty) and the significantly higher resale value of the Honda Accord.
If you would like further information on Honda cars and trucks, please call 800-786-2756 and ask for any of our Sales Professionals. We would be happy to answer any questions that you may have.