No mortgage broker spiffs and fewer relitters needing cabs to ferry the marks around in = fewer BMW's sold/leased.

Actually where I live the BMW crowd is switching to Prius in order to save the planet.

i've heard that some car buyers are actually shifting to motorcycles, because they actually use less gas.

Let them buy Mercedes!

It's gas. It's MEW. It's the whole shebang. When you paid 300k for your house and it's suddenly worth 500k, 50k for a car seems somehow an acceptable indulgence.

Oops; maybe HD stood for Home Depot? Ah, well, not so different from H-D, actually, minus the competition from past sales, though perhaps not so very different, once you figure the actual kitchens in homes for sale vs. doing your own...

Some similar problems in the UK - MEW was sucha big factor in our false growth phase of the last few years!

David Healy is one of the best, if you want honest research.

Looking foreward to a deal on a new Porsche twin turbo. Can't wait!

There's and old groaner of a joke, once applied to Houston oil men during the mid 80's oil bust, but now works again:

What's the difference between a seagull and a socal mortgage broker?

The seagull's the only one still making deposits on a BMW.

I'm personally not such a big fan of options myself. Like I said, they like to expire worthless, or so I hear, and in general, who's got more info/power, the option writer or the option buyer? With the actual stock, though, if you have the stomach for it, I'd venture to say it's a more level playing field...

BMW = Big Money Wasters

disclosure: I have 2.

Is it time for DUG calls?

wait to you have to service that BMW
average RO at dealership is 482.00 as of Jan. 08..

Dealers are selling used cars, the key is having someone who knows how to hang paper....Thier are still C credit lenders buying pretty deep..

although this one won't be-

http://www.triadfinancial.com/dealers/notice.html

CR your spot on with this one..Plus the 0% 0 down game was what fueled auto growth last 6 years also..

I switched down from various sports cars to a Prius in '05 ... because I'm a frickin' genius!

(really the logic was: if not PO then at least GW, if not GW then at least economy)

Dogbert,
You don't drive an airplane into the ground. You auger in...Old term.

This gas panic has gotten so bad people have stopped buying spoon shoveled BS from financial news corporations, deciding they'd rather step down to full on Tractor trailer loads of BS from non-specialized newspapers and television.

The logic? They are hoping that the new forms of gas will makeup for the lack of the old one.

Back in December, a week before christmas, here in Germany everybody was shocked when BMW said they had to make 8000 employees redundant. Nobody understood because BMW has been another word for success over here for well over 30 years now. But now, it looks like the guys at the helm of BMW just saw the signs on the wall.... hope they will survive. My first car was a 1988 white BMW 325ix - still missing it

ATB from Germany

Anyone considering a change from Mercedes or BMW might go to Honda or Toyota. If they go Dearbornistan they will have the shock of their life first time it needs service, and it will not take long.

Just checked how much gas a Harley needs. 90% of our cars do with less.

After years and years of paying gas prices of around $8 to $9 (now between $10 and §11) I come to the conclusion that there must be a good thing to a gas price that consists of 60% gas taxes and 40% actual product price.

ATB from Germany

Elvis: The premium requirement is most likely because you have a high compression engine, and low-octane fuel may give you knock under certain circumstances. It's about engine lifetime, not performance.

Dryfly

You are going to be getting some 'great deals' from them just like we did here... but it will come at a cost. In the long run without a 'tradable' sector its hard to maintain prosperity. That is where we are now - just now realizing that.

dryfly | 06.12.08 - 9:17 pm | #

I totally agree with you on that. Products from China can be found all over the shops over here as well.

However, many German companies have actually relocated production to Germany that they moved to e.g. Czech Republic ten years ago because things didn´t move out like they should have.

Also, the high oil price might actually be helping us ironically making the shipping of goods more expensive.

I can not see Germany ending up with a credit bubble either. House prices have remained the same for decades, more or less at least. Credit cards are unknown to most people. Debt is something that should be avoided whenever possible. So we might suffer a bit, but not the US (hardcore) way... sure the standard of living will go down in all first world countries in one way or the other.

ATB from Germany

I cannot see Germany, or France, sit on their hands while the China zone excavates their wealth. They put the run on Walmart and, I bet, they will put the run on Chinese mercantilism.

They will cut the fat hog that the US gave away to China, forcing them to reciprocate, ie; fair trade.

Hit the road, Jack and don't ya come back.....

Dryfly, thats a very good point I never thought of. But then, I can not see the Euro as a reserve currency like the US dollar is because the whole system is not quite as stable as it might look like from outside.

Remember how many governments are involved (and willing to screw the whole thing up if only it is for their reelection...).

If the Euro stays as strong as it is, some fake tan face lifting prime ministers will find a way to get rid of it instead of doing real reforms in their poor countries (no offence to be taken by the mafia).

ATB from Germany

I looked at a Jetta in 1996 (totally over-priced, tight fit ( I am 6'4 235 lbs) the company was going the way of fiat at the time). Liked some of the cuteness but never went back to look again. Some people seem to be claiming their car is different. Okay.

ATB

Seat Ibaza ? What the heck is that ?

The dollars accumulated in the coffers of our Asian friends is the annhilation of the US budget surplus of 2000. Meanwhile, pensions, health care, job security, and wages, have declined for 98 % of Americans. A national tradgedy.

I watch with interest as China focuses on Europe for their growth. Good luck, and best wishes.

BMW.......the chevy of the alps. I have no idea how they got such a great rep here. I think it was all the Bifs and Buffys in the high end burbs.

Great joke. Bif is on the highway, runs out of gas. He puts his arm out the window. A big rig side swipes him and cuts off his arm. A cop pulls up and Bif is yelling 'MY BIMMER, MY BIMMER" the cop says 'hey man, you just lost your ARM!!! Bif yells 'MY ROLEX, MY ROLEX'

Luv the Porsches though. Had a 79 with a racing turbo. Scary fast but butt end heavy. The new ones with trac control are awesome. Milage? Who GAF...

BMWs are rock solid cars that have been very well engineered, and the 4cylinder ones give you a very decent gas mileage.

However, there is no doubt that for some reason they are often driven by the wrong people. Rich son or daughter (newly used BMW) or subprime hero (old BMW). That is no different over here...

ATB from Germany

who on earth would switch a bmw for a ford??
It would be as switching indiana jones for harrison ford!

WTF. I would have never guessed that Germany is the world's top exporter.

Dear Invisible Hand,

I am not aware of such a high percentage figure, I think the most common would be to put down between 20 - 30%. This might be lower or higher depending on where the property is and how much the purchaser earns (VERY thoroughly checked), for how long he has been dealing with his bank etc.
Maybe it was 40 - 50% a long time ago (I am only in my 30s...)

However, the most common way to take out a loan over here would be to establish an account with a building society when you are rather young, save some money for a couple of years and then take out a loan from them. So they know you for some time before you get the loan.

Also, 99% of Germans buy a house only once in their lifetime and don´t move if they don´t have to, and house are a tad more solid, lasting for 100 - 150 years on average... so often they are handed from generation to generation (I am writing from a house from the 1930s that one day will be mine - looks and feels like new)

ATB from Germany

dryfly,
Good point regarding intra-Eurozone trade. Except I'm not so sure how much non-service and non-agriculture trade there is between the states.

It's just interesting to see actual numbers, especially with all of this "fair trade" discussion. I was looking at the commerce dept data; our trade figures our ugly. We're run deficits with 13/15 of top trading partners (I+E); only Singapore and Netherlands are positive.

Just read that Bloomberg article for a second time... is it really possible to buy a BMW 750i for $76,000 in the US?
Here in Germany, the same car is EUR 81,500 including value addes tax. To my calculation, that should be $125,000...roughly. That´s confusing.

Anyway, ATB from Germany

Flyingbrick,

you might possibly get stronger springs/shock absorbers from your VW dealer for the car for use on less good roads, at least that is what some farmers do when they buy their VWs over here. Doesn´t look "cool" however...

Invisble Hand,

you are making a point there. It is nearly 6 a.m. in Germany. I have spent a couple of nights reading this blog (and some others) for some time now but not THAT late. Last post for today.
Everyday, I am learning a new three letter acronym. Thanks for your offer to help on this. Dare I say that I am a student of real estate management or will I possibly be banned from this blog (just kidding).
However, it is the really interesting things that I learn in here. The thing the struck me most was when I realized that in the US, a mortgage is tied to a house and therefore it is possible to walk away from it. In Germany, a mortgage would ALWAYS be tied to a person, you are stuck with it, even if the house looses e.g. half its value.

ATB from Germany

Dryfly,

one more point: the main reason why Germany is currently doing a little bit better than other European countries, is because there have been only very decent wage rises here, thanks to the labour competition from adjacent east european countries for the last 15-18 years. No that some of them have labour shortages, things are starting to get a little bit better.

GermanGuy,
Not suprising the Ruskies like Baden Baden. Read Dostoiyvske's "The Gambler." Gambling in Rossiya is being banned to the hinterlands. Orthodox Church is opposed.

Americans like to know their ancestory because we are also English. Like India didn't know their own history til we dug it up for them. But Schlieman and TROY. I saw the perloined artifacts in a Moscow museum. Beautiful!

ATB from Germany

I'm have German blood, born in Königsberg before it became Kaliningrad , raised in St Petersburg and Berlin. US citizen now.
Prussian father and Saxon mother.

What happened today? You guys help the Croats and then they bite you in the ass.

But the engine design & build was awesome - he said they named the company right for sure... with emphasis on the 'M'.

dryfly | 06.12.08 - 9:25 pm | #
BMW - Bayern Munchech Wagen - means in english Bavaria Munchen Car not Motor

regarding cars, the funny thing is that hybrids are dead in EU, maybe cause they cost with VAT 50% more than european or asian comparable cars but the main kicke is fuel consumption.

in us where the cars consume 15l / 100km a hybrid with 7-8l/100km is nice but here in EU even large sedans consume 7-8l/100km and if you take in account latest gasoline motors with compressors or asian motors with VVTI whiche have volume 1.5 and get 100HPS

what i want to say is why should i buy a hybrid for 50% more cash when it consumes the same amount of fuel as diesel or latest gasoline motors.

in eastern europe most people in middle class buy asian cars, since the last generation finally has a nice design mainly because all design studios of asian carmakers are now in germany

also the outsourcing to asia is not so easy since i doubt there would be many people in china who speak fluent french or german.

CR is correct with his assessment. This equity anal-lyst is a joke, though. How does one become an anal-lyst anyway? Does it require a high school diploma or will a GED suffice?

A client of mine is a sales manager at a local nissan dealership. He states that for years people were using their "MEW checks" to buy new cars. But now, it's all dried up. No more ATM access:(

A good portion of that 14% drop is likely due to Realtors unable to afford that Bimmer now. So sad.

The only recent examples i can remember of member states banning without EU backing certain kinds of commerce was due to animal disease. I'm not so sure that US states don't do the same