[2111USMC]

American car and truck quality has increased dramatically over the last few years. Having spent a short time in auto sales, and still having many friends in the industry, I think this quote from the article tells the real story: ""The programs were more about 'reallocating sales' than stimulating demand," Barry said in a research note."

For numerous years now, American auto manufacturers were offering 0% interest, "no money down, and then followed by "Employee Pricing".

What has happened over the last few years is that they have only accelerated the normal consumer's buying cycle. People that would have waited another year or two, before they traded in, took advantage of the low pricing and interest rates. In other words, they sold vehicles 1 - 2 years ahead of the normal ownership cycle. That is why there is a glut of used vehicles on the market. That is also why people are not buying new cars now.

Almost everyone who would have purchased a new vehicle over the next 2-3 years has already done so.

[packrat35]

Yes this is exactly what happened with my wife and I. We traded in our 2000 car for a SUV. With the 0% financing, we went ahead and traded in our 2002 car the very next week. We won't be buying any cars anytime soon.