Re: that is somewhat clever... - Saab General Bulletin Board - Saabnet.com
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Re: that is somewhat clever...
Posted by Tim (more from Tim) on Thu, 31 Mar 2011 11:34:41
In Reply to: that is somewhat clever..., James, Thu, 31 Mar 2011 11:08:14
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IMHO, when the cheaper alternatives are removed from the market place, the prices for the good remaining ones will go up automatically due to supply-and-demand. The first-time Saab owners will no longer fall for the cheap traps. Down here a couple years ago, there was a taxpayer boondongle called "cash for clunkers." It worked extremely effectively as a way of raising prices for new car and used cars alike. The problem with that program was the fact that taxpayers were dragooned into paying for cars and banks doing the financing. If Saab reallocates funds from current price discounts to such a program, it may just light a fire under new car sales and prices for new and used alike as those cheap tramps/traps are removed from the market place. A cheap tramp that gets passed among three owners in three years produces three unhappy former owners of the brand, and eliminates three potential buyers of better specimens if the tramp/trap car didn't exist to begin with.
posted by 76.118.39...
Posts in this Thread:
- Should I be concerned about Saab?, Mike Johnson, Tue, 29 Mar 2011 17:02:49
- Forbes leaves Antonov almost out in 'collapse' item, JohnA , Fri, 1 Apr 2011 13:11:44
- Saab future is 'uncertain' without fresh funds, JohnA , Fri, 1 Apr 2011 06:46:57
- production back up..., James, Wed, 30 Mar 2011 08:13:06
- no n/m, JohnA , Wed, 30 Mar 2011 07:10:53
- All I read..., ChrisP, Wed, 30 Mar 2011 05:19:44
- Re: Should I be concerned about Saab?, EGD , Wed, 30 Mar 2011 05:10:19
- What was Mark Twain's quote?, MI-Roger , Tue, 29 Mar 2011 17:56:44
- Re: Should I be concerned about Saab?, mikes1929, Tue, 29 Mar 2011 17:43:29
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