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In April 2009 Ford declared that it would not need government aid and claimed that it had a plan to break even in two years. Ford has been ahead of its main rival General Motors in scaling down its business by selling Aston Martin, Land Rover and Jaguar over the past two years. GM, meanwhile, went through a massive reorganization after filing for Chapter 11 bankruptcy proceedings. GM is temporarily majority owned by US government after it invested $57.6 billion in the company.

Per the plan GM executives presented in congressional hearings the company would reach the break-even point by 2011. They further declared that they would cut costs by eliminating 47,000 jobs, closing five more unprofitable factories and cut at least $18 billion in debt from its balance sheet. It was expected that these cost cuts would allow the company to break even when the U.S. auto market returned to between 11.5 million to 12 million vehicles sold per year.

J.D Power and Associates, a global marketing information services firm, announced its projections about the new automotive industry break-even point. According to Gary Dilts, senior vice president of U.S. automotive at J.D. Power and Associates, due to cost-cutting measures such as renegotiation of union and supplier contracts, the break-even point for the domestic automotive industry will decrease by more than 2 million units when comparing current industry conditions to those forecast in 2010. Dilts explains the reason for this decrease due to the significant declines in the auto industry which resulted in lost sales volume of more than 7 million units between 2000 and 2009. This sales volume makes $175 billion in net revenue. Continue reading ‘Break Even Point For The US Domestic Auto Industry’ »

Whatever you do, try not to lose patience when looking for good repo cars for sale. There will be a lot of units to take a look at before you finally get to make your choice, but this will all pay off. The reason why you have to be extra vigilant is because these are secondhand units and that means the position of the auction is as-is-where-is. A warranty is the only advantage a brand new car will have, and in this case, you do not get one.

Despite what most people may think it sounds like, repo cars for sale are not that much of a bad idea. If you are out hunting for secondhand vehicles, you may be surprised at the fact that used car salesmen usually get their stocks from auctions. Here, they make maybe close to 200% mark-up on the resale, which is why you have to cut out the middleman and go directly to the source.

Not only do most repo cars for sale that you may find here be between one to five years old, starting bids normally start at $100 and may pretty well end up to just 10% its real market value. Continue reading ‘Repo Cars For Sale’ »