[Crusher138]

A local car dealer told me that there new car “sales” are now over 50% leases. He shared other “insider” concerns:

Cars last longer - 40 years ago few cars made it to 100,000 miles. Most cars now have a life expectancy of 200,000+ miles.

Depreciation - Imagine if your house depreciated at least 20% the day you closed on it. Cars are the only high priced item that drops in value a huge amount for no good reason.

The Internet - knowledge is power and now there is no reason for anyone to pay too much for a car - new or used.

Uncertainty - with states pushing unreasonable gas mileage standards and the rise of new technologies, people are leery of spending $30K+ on an item that will be considered obsolete before the end of it’s useful life.

There were more (including the issue of vehicles being transported having narcotics hidden in them) but it all boiled down to a really crappy time to be in the car business.

[Vigilanteman]

My local Honda dealer told me that they only make about $500 each car on the low end. They make their money by selling the high end and running a first class service department.

When I bought my low end Honda from them, I actually checked around. I could only save about $80 by going to a distant dealership. That would barely cover my trip there and back.