Car dealers are unanimous in their pessimism
Unanimity is rare in surveys of business people, but the St. Louis Fed found it among area car dealers. The Fed’s latest Burgundy Book survey says that all the dealers it talked to expect lower sales this year. Other retailers aren’t quite as pessimistic, but half of them expect sales to fall and only one-third expect sales to rise.
In real estate, the Burgundy Book notes that residential construction remains slow, with building permits down 41 percent in the first four months of 2009. It says the commercial market is in relatively better shape, but adds a note of warning:
Still, a contact in the St. Louis area noted that the demand for industrial real estate is waning and that the market is currently overbuilt.



David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page.
And if cap-and-trade passes, this country can kiss its economic recovery rear end goodbye.
I am surprised to hear this. I was at Bommarito Nissan and they were not in the least bit willing to deal. It did not seem like they were hurting, & they did not seem to concerned about losing my business. Oh well I have been considering switching to Toyota anyway, maybe Pappas will deal.
I’m surprised by the seemingly lack of flexibility from dealers right now too. Sales keep going down down down and it seems the dealers would rather cut off their nose to spite their face.
I am sorry this is a joke if Dealers see this year as bleak it’s because they are making it that way. Dealers across the Country are still selling cars, Dealers in a harder hit situation in Metro Detroit home of the Big three are seeing sales increase with the summer months in tow. The reason dealers in Saint Louis see the market as being down is because they are too scared to be agressive in a downed economy. I am sorry but the Auto dealers in Saint Louis are Scared and WEAK and that is why in the next couple years we will see more dealers closing there doors in other franchise brands throught the market.
I have been trying to buy a vehicle for months with several dealers in the metro area and bordering states. The vehicle is one that is not rolling off the lots now and nobody is interest in dealing. I am offering a cash deal with no financing and no trade and they are only offering token discounts on dozens of the vehicles that have been sitting on their lots for months.
The dealers are right that they will sell less cars this year, but don’t blame it on the economy, blame it on them. They continue to operate the same way as they did 15-years ago. They offer the same stupid incentives and refuse to deal. Maybe if one of them came up with an original idea, it might make a difference.
I have emailed several “Internet Managers” lately who are so slow to respond to my questions, which they don’t even answer. Car shopping is like shopping for a pre-arranged funeral.
I will never buy a brand new GM unless they have the employee pricing. Why would you buy from one of these guys and the next month the car you bought is now 7-10k less? They brought this one on themselves as well.
To the posters who say the dealers won’t “deal”
Could it be that Toyota, Nissan and Honda feel like they have the consumer by the nads because of the GM and Chrysler situation because buyers are afraid of their products at this time?, less competition.
Could it be that consumers are thinking they can just walk into any dealer and make any offer and because of the economy the dealer is suppose to bend down kiss their feet and take it regardless of profit margin?
Could it be if you have a trade they don’t want it because they have too many on their lots now they can’t sell, so they won’t give you anything for it?
Could it be that dealers have banded together and have agreed to make a certain amount per make and model?
I suspect it maybe a combination of things but who knows.
I know one thing buying a car is a experience in which you feel like you never get a kiss before you get screwed.
Both of my cars are paid off this year. The only way those dealers are getting a dime from me is if they blow up one of my cars! I’ll be on the lookout for salesmen with handheld RPG’s while I’m driving down Manchester Rd.
It’s not GM’s fault or Chrysler or any other franchise for that matter. Banks have tightened leanding which is resulting in stricter auto deals. As for Vehicle depreciation. every car depreciates and they all do it at just about the same rate as soon as it leaves the lot and is now in your possesion deal with it, it’s life.