Comments on: US car dealer dies torching own vehicles

By: Dan

Dan — Thu, 12 Mar 2009 05:25:59 +0000

There is nothing implied in my post Adam. I was merely replying to Runnaln’s question. None of us know exactly what the situation was with the dealer, so there is no point speculating yay or nay.

By: adam (aka mada)

adam (aka mada) — Thu, 12 Mar 2009 04:48:22 +0000

Dan,

So this dealer is going out of business due to the arse falling out of the new vehicle sales, 50%.

You’re implying that his dealership business was operated poorly hence him not being able to trade through this severe recession.
We all know why the 50% drop in sales has occured, the point is some businesses won’t pull through to the other side, heck GM is on the verge of collapse, any wonder why this GM dealer was on his kness?

By: pious

pious — Thu, 12 Mar 2009 03:59:38 +0000

I think that part of the problem is that with no-one buying, a lot of debt which was levered against positive equity is now against negative equity. On the GC, plenty of $3M plus houses are going for sub $2M, if they sell at all. What you could get for $2M in 2007 is now $1.1 – $1.4M maybe. If you owed 60% on one of these 2 years ago, you might owe over $100% now, just through the drop in value, and have barely any market (coz the high fliers copped it in the tail when the sharemarket dropped) with tougher finance criteria, and the risk of losing your job or business, then the usual marriage bust-up (likelihood increases significantly with financial pressure) etc etc. It’s a wonder we havent seen more things like this poor sod.

By: Dan

Dan — Thu, 12 Mar 2009 03:38:52 +0000

Runnaln – “Dan I guess if you lost your Job you could pay all your debts.”

You have to be an absolute moron to get to a stage where you have more debts than assets, and contiinue to trade. Actually, that’s illegal too. If I was to loose my job, in worst case scenario I should be able to sell my assets and pay out my debts.

Adam, how is that related to what you said about the drop in sales?? It’s because of the subprime crisis, that there is a drop in sales. Now I lost you. What’s you point?

By: adam (aka mada)

adam (aka mada) — Thu, 12 Mar 2009 03:29:36 +0000

Dan,
This is what you said originally…

Dan Says:

It’s the common folk who are at fault, not the banks (although some blame can be directed at them also for not being careful who they lend to). If you can’t afford to buy something, then you don’t buy it. Simple. Yet plenty did and coudln’t afford to pay it off. Hence now we got this crisis.

I disagree based on the circumstances, thats the point.

By: runnaln

runnaln — Thu, 12 Mar 2009 03:12:58 +0000

Dan you are defending the undefendable.

Dan I guess if you lost your Job you could pay all your debts.

The bankers were paid multi million dollar salaries and bonus, to make sure this did not happen, if they had to take responsibility for their actions they would be in Prison. Many of them stole millions from there companies knowing they were insolvent and transferred assets to there spouses, family etc, to avoid their responsibilities.

By: Tomas79

Tomas79 — Thu, 12 Mar 2009 03:09:09 +0000

GETREAL Says: “Just like the fate of GM, how ironic.”

Hehehe, so True!!

By: Dan

Dan — Thu, 12 Mar 2009 03:01:46 +0000

LOL, I am not sure what your point is to be honest. That’s sort of stating the obvious. Never mind.

By: adam (aka mada)

adam (aka mada) — Thu, 12 Mar 2009 02:55:50 +0000

My point exactly…

This downturn was fast and its severe. Everyone is feeling the pain in some form.

By: Dan

Dan — Thu, 12 Mar 2009 02:49:00 +0000

Of course it is significant. If I had cash reserves it would help heaps. It will really depend on how well you’ve done in the past and whether you have enough of those reseves. You’d also be hoping it won’t last long otehrwise you’re in more trouble.