More from the NY Times article about car sales and recessions. Accompanyng picture in the photo lbums
If a recession is under way, this economic recovery
will have been the least beneficial one ever for
the new-car dealers. The best inflation-adjusted
year-over-year increase in their revenue during the
recovery was 6.9 percent, far below the peaks of
other recoveries.
There is, of course, no mystery now as to what the
problems are for car dealers. They are pinched by
the slumping real estate market because people can
take less money out of home equity to buy cars. And
soaring gasoline prices have made driving much more
expensive and new-car payments more burdensome. In
July, sales at gasoline stations accounted for 10
percent of all retail sales, the highest figure in
decades.
Dealers are hurting. The rest of us may soon share
their pain.