Saturday, May 17, 2014

Zero Hedge: The Worlds Unsold Car Stockpile (updated*)

"Houston...We have a problem!... Nobody is buying brand new cars anymore!  Well they are, but not on the scale they once were.  Millions of brand new unsold cars are just sitting redundant on runways and car parks around the world.  There, they stay, slowly deteriorating without being maintained."

"The car industry would never sell these cars at massive reductions in their prices to get rid of them, no they still want every buck.  If they were to price these cars for a couple of thousand they would sell them.  However, nobody would then buy any expensive cars and then they  would end up being unsold."



(The images on this webpage showing all of these unsold cars are just a very small portion of those around the world.  There are literally thousands of these "car parks" rammed full of unsold cars in practically every country on the planet.)

*Update : That Zero Hedge Article On Unsold Cars Is Bullshit

42 comments:

AllenS said...

Here's something from an email that I received from a friend this morning:

Old cars

Not completely off topic.



edutcher said...

A lot of houses are like that.

ndspinelli said...

Buying new cars is for chumps. I used to be one. But, I learned to not buy new cars from buying conversion vans for surveillance. Those are very expensive new. And, I was a low overhead man in operating my biz. So, I started buying vans 5-8 years old. People tend to take care of them and they are great buys, used. I had a great salesman who knew I was a zero bullshit guy. When I needed one, he would find me one and always be fair. That's how I buy my cars for the last 20 years.

bagoh20 said...

I just bought a car the other day. I'm a truck guy, and this was the first car I've bought in over 20 years, but the new roommate?, girlfriend?, partner? needs a car here in L.A.. Her car stays in Vegas for when she's there on business.

Anyway, I bought a 2013 Hyundai Elantra with 25K miles that is just like new. I almost always buy low-mileage used vehicles. It's just a huge savings and with car histories available today you can see where it's been. A lot of used cars have hardly been used. People lose jobs, or change their mind, or fleets over-buy, etc. You can save thousands and still get a virtually brand new car.

BTW, what is a good term for your live-in significant other if you are not married? I like "partner", but that implies one of us is in drag, and it also gets confused with a business partner. We need an accepted term for what is a very common relationship today.

edutcher said...

I always found The Blonde (Redhead, Brunette, (Baldilocks?)) useful.

chickelit said...

I'm still driving a 2003 VW Golf diesel that I bought from a dealer with about 5k miles on it. It's got 165k on it now, the brakes and everything that wears have gone through one or two replacements already. At some point you start putting more into in parts than it's worth, but hopefully I still have a ways.

chickelit said...

I used to have a 1963 Thunderbird -- now that was a money pit.

AllenS said...

I need to buy a used pickup truck. My 1984 Chevy pickup is falling apart. I want something nice, but used. They want a lot of money for nice looking pickups with 140,000 miles on them. I need something with a big enough motor to pull my tandem axle trailer. I don't think this will be easy or cheap.

Aridog said...

Bagoh20 asked ...

... what is a good term for your live-in significant other if you are not married?

I've used my "better half" for some 34 years now, with the same woman to boot.

Aridog said...

As for cars or trucks, I've bought new and I've bought slightly used and found them to be equal in every respect. I tend to keep what I buy longer now that I don't drive 35,000 miles per year or more.

These days, with the cost of travel what it is by highway (lodging, food, and fuel) you just spend a load just getting to and returning from some far away place (not a road trip visiting everywhere) that is really your point of interest. So I fly...which is becoming more like travel by cattle car every year.

In some destinations, such as Montana, I rent a vehicle...but never ever in places like Washington DC...where I had to travel frequently for a couple decades....only exception in the DC area were trips to Fort Belvoir, when I'd take a taxi to Springfield, VA and rent a car there.

God made taxis and trains for places like that...driving in DC between 6:00 - 9:00 AM and 3:00 - 7:00 PM is only for dedicated masochists.

ricpic said...

bagoh - you probably got a great deal but there's always the chance those first 25,000 miles were put on by a zero to sixty in ten seconds and hit the brakes hard type. That's my only hangup with buying used.

Meade said...

"a good term for your live-in significant other if you are not married?"

Just call her your "high-mileage used vehicle".

Or "pretty little one".

Icepick said...

Ari, you gotta get with the spirit of DC traffic and drive like a sadist with a superiority complex. Drive like you own the place, like it OWES you something - drive like a lobbyist.

I knew I could drive anywhere in the States (except maybe Boston) when I started cutting of DC city buses with my old Cavalier.LA was always easy after that.

Icepick said...

Lived in Balmer for a while and had to drive into DC for business often enough to learn how to drive there.

Leland said...

I'm not sure I completely believe that story. I live near 3 large car import/export locations. They often look the pictures shown at the link. Then a train will come, a ro-ro ship will enter port, and poof the cars are gone. It wouldn't be hard to photograph one of these locations and write up such a story. Indeed, even in the story it mentions several cars at a test track that since disappeared with the giant assumption they were all scrapped.

That's not to say there isn't some truth to the suggestion, but it would need a bit more collaboration than those photos. For instance, manufacturers could hide sales for a short time (a quarter or two), but not the year plus suggested. I've heard sales are down, but how down? Also, back in 2008/2009, it wasn't just cars piled up in lots, but ships were piled up long term storage. I even went past a rail yard with 20 locomotives sitting idle.

I believe a correction may be coming, and I accept that last quarter the economy contracted. However, the zerohedge story needs a bit more to buy everything it was suggesting.

Agree with edutcher that there are still houses like that from 2008/09, and as a person looking to move into a better home; I'm a bit pissed at the game being played with them to protect stupid people and corrupt bankers.

Chip S. said...

There's zerohedge, and there's reality.

May 12, 2014 - 12:01 am ET
Assisted by strong April sales, automakers trimmed U.S. stocks of unsold light vehicles for a second consecutive month….

Expressed as how long stocks would last at the previous month’s sales pace, automakers had a 69-day supply on May 1, up from 63 days on April 1.

But that’s only slightly higher than that date’s 22-year average of 67 days.

And it’s close to the industry’s traditional ideal of a 60- to 65-day supply.

I'm Full of Soup said...

How about Main Squeeze Bago?

Lem said...

Thats why there is so much pressure to legalize the undocumented...

We need people who still want to work to buy cars and maybe own a home... people that arent part of the get hi and play video games economy... at least not yet.

Rabel said...

"We need an accepted term for what is a very common relationship today."

Depends on the age differential. I've found "niece" to work pretty well. Or "nephew" what with you being Californian.

bagoh20 said...

"there's always the chance those first 25,000 miles were put on by a zero to sixty in ten seconds and hit the brakes hard type."

Definitely an issue on some cars like mustangs or chargers and such which often are beat with low milage, but the car I bought is 4 cylinders and cute, so not likely to get that usage. I always look for wear on the gas and brake peddles and the steering wheel to get an idea of if it's been driven hard.

bagoh20 said...

HERE is "the blonde", "main squeeze", "high milage used vehicle" or "Tits" as I think I'll call her, with the new vehicle I got her. It has an awesome sunroof, and I doubt anyone has driven it 0 - 60 mph.

And Rabel, there is no age difference, and there are at least a half dozen of us straights left here in CA. We have a secret handshake.

chickelit said...

She's pretty foxy, bagoh20 -- times three!

chickelit said...

Why does bag's link go to different photo every time I click on it?

chickelit said...

The link first took me here...

bagoh20 said...

Yea, I screwed up the link the first try. That photo is of a foxy threesome I once enjoyed. Those days are gone for good now.

Aridog said...

"Tits" aka your "better half" is a horsewoman or at least loves horses...Extra points for that.

AllenS said...

BAGS! WOOOOOT!

chickelit said...

She's tall, bagoh20! How many hands?

This old chirbit seems a propos: chirbit

I may have to transfer title of that voice to you, bags.

bagoh20 said...

"How many hands?"

She still has both. I didn't import her from Iran.

Lem said...

That girl looks like one of the Charlie's Angels Bags.

None of them have gone missing, is that right ;)

Aridog said...

Slightly OT...the Preakness is about to start on NBC. It's "Riders Up" and soon they go.

I dislike thoroughbred racing because of the young age they start. But I love horses and will watch and pray none of the 10 break down. I think California Chrome will win...he has a spectacular lead change in the final turn, way ahead of the rest of the pack. In short, he can go full out as soon as on the straight, no delay.

bagoh20 said...

Oh, she is no angel. I do have my standards to maintain.

AllenS said...

Chrome.

Aridog said...

California Chrome has won the Preakness...I watched the final turn...his lead change was 12 strides before the rest...literally in the apex of the turn. Few horses can do that.

And all of the 10 are still standing. Bless them all.

Horses like California Chrome remind me of predecessors like Big Brown...both Thoroughbreds I'd love to have taken off the track and ridden them in Three Day Events...it's the multi-million $$ cost that would hamper that.

Bagoh20...your old/new love loves horses. Can't beat that. My better half Judi won my heart with her untutored touch with horses, in particular a 4 month old colt named "Dunny." I bought him and she learned to ride him at the same time he learned to be ridden. Soon enough I gave him to her for a birthday....he lived 26 years and gave everyone around him pure joy...almost more dog than horse in behavior.

bagoh20 said...

Ari, We have friends in Vegas who breed and ride Arabians in endurance competitions. That photo is at their place a few weeks ago just after that mare gave birth to a healthy colt. The girl does love horses, and often watches their animals for them when they go out of town. They also breed Australian Shepherds, so lots of animals and births and work to do. I have a thing for women who like to get dirty, and can deal with a lot of shit.

ndspinelli said...

Aridog, Saw Ca. Chrome run @ Santa Anita. He's a great horse. The Belmont is the toughest by far.

Meade said...

"I dislike thoroughbred racing because of the young age they start. But I love horses and will watch and pray none of the 10 break down."

There, in a nutcase nutshell, is the hypocrisy of horse racing "enthusiasts".

Disgusting.

Aridog said...

For the record, horsemen with a conscience remain interested, but not enthusiastic, in all forms of competition. The idea is to potentially influence positive changes, over time, for the horses involved.

My own final horse types were working cow horse breeds...and in that arena positive changes really were effected. The California Reined Cow Horse Association (that most of us in the field admired bar none), who considered "maturity" in a horse to be 5 years of age, became the National Reined Cow Horse Association and spread its rules and practices nation wide. Among Thoroughbreds there is always "Cigar" (infertile) and "John Henry" (gelded) to consider their capability in older years...well over 2 or 3.

You can never effect changes if you do not stay at least minimally involved. Be a member of organizations, voice your opinions, and in the horse world, you'd surprised how easy that is to do. Of course, big money will drown out good ideas at times, but persistence can pay off.

I began with show jumpers and three day event horses, both in a field long ago adjusted to the reality of horse maturity and development...a "green" competitor may be 7 to 10 years old, those at their Gran Prix peaks from 10 to 18 years old. It is however a very expensive coterie. Tough to stay in if you are not either rich as hell or a rider phenom who will be hired by the rich as hell.

A favorite of mine, one top ranked show jumper who Judi & I were at his Gran Prix "maiden" event, was "Big Ben" who competed from age 7 until 18...one magnificent animal. Another phenomenal animal is " Moorlands Totilas", as ridden by Edward Gal, ...if you watch a Youtube video of his win(s) at the FEI World Equestrian Games in Kentucky 2010 you should be amazed. He was then 10+ years old.

Once you become addicted, you stay involved, and it is not hypocrisy. That is reserved to the owners like those who criticized Jockey Kent Desormeaux for pulling up Big Brown in the Belmont (after winning the Derby and the Preakness). Desormeaux no doubt saved Big Brown's life and was vindicated by photographs after the race and criticism.

Meade said...

Horse racing is a cruel misuse of a fine and noble animal. Otherwise, why would you "pray none of the 10 break down"? As a nice and good person, you should be ashamed of yourself. Posing and preening. Disgusting.

Aridog said...

Meade...you are clueless and don't read with comprehension. You cannot change what you ignore. Now that is posing and preening.

chickelit said...

I loved "National Velvet"

Aridog said...

Me too. Heh. I am old enough to have read "King of the Wind" when it was published originally and I was barely an 8 year old who had begun serious (schooled) riding the year before.