They’re dead. It’s bad enough no one’s making loans. Add to that the specter of bankruptcy, voided warranties, and defunct parts suppliers and it’s not surprising that sales are off the cliff. But the killshot is going to come from the privately-owned, used car market. This is going to erupt in 2009 as households raise cash to pay off debts or offset job losses. Good vehicles are going to be sold dirt cheap and destroy what’s left of the new-car market.
A bailout is absolute madness. The may as well ignite all that cash on a bonfire and invite the public to toast marshmallows.
Peope are servicing and keeping their older vehicles.