Drop in car sales affecting Japanese automakers on clarkhoward.com

Car sales are at their worst level since 1993, with sales down 27% in the month of September. We've known for awhile that American automakers have been hurting, but the latest figures show that even Japanese automakers are ailing. Toyota's sales are down 32%; Honda is down 34%; and Nissan is down 37%

There are 2 main reasons behind the death spiral in the auto business. First, we've lost confidence in the economy and are afraid to spend money on big purchases. Second, even if you wanted to buy a car right now, many banks won't write loans because of the tightening of credit markets. That should work itself out as the behind-the-scenes credit markets thaw out and more money starts flowing again.

One tip -- try your local credit union if you are looking for an auto loan.

Suffering sales means that this is a great time to buy if you're able. The news about the slowdown hitting Japanese automakers means that you may be able to steal a deal on some coveted foreign nameplates. Of course, the best opportunity is always to buy used, especially if you're looking for a luxury model.

In related news, Clark reveals that he's sold his natural gas car, the Honda Civic GX. He credits T. Boone Pickens with raising awareness about natural gas vehicles, allowing him to capitalize on the market scarcity by putting his up for auction online. Clark sold it on eBay for far more than he paid for it a year ago. Now he drives his old standby Scion XB!

What others are saying

"Foreign" not so foreign these days
These days "American" cars are more likely to have been built in Mexico or Canada and "foreign" cars almost as likely to have been built in the US. So how is sending money into the pockets of the CEO's of American automakers helping when I can buy a "foreign" car made in TN or AL and help keep workers in the US employed? Don't look at the labels, look beyond the hype.
By JB @ 10/07/08 12:29:01 PMreport abuse
Japanese Auto Makers
As United States citizens,you/we should be more concerned about U.S. auto makers, not the Japanese.Net profits stay here, helps create more net jobs for us, a higher value in the dollar and perhaps better 401 k's, and more secure black ink for U.S. companies. The quality and mpg's are now equal or better for US/Japaneses, and are as cheap or cheaper WHEN compared with like models and sizes. So...promoting and giving credit where due would be an honest and refreshing change from the bias I hear from your program. Perhaps more research on other than a Honda would be a good thing. Go out and drive a Ford or a Chevrolet and see how good they drive, how the fuel economy is on comparable models etc. Maybe you'll be able to help our economy in the process. You should know all the Ford and Chevy models as easily as you spout off Toyotas, Nissans, Hyundis etc.etc.etc. The competition does not experience an even playing field. Japan does not take kindly to auto imports to Japan. The Lexis model is a top rated car, and some Honda models...but not all models in eother company...there are Fords ,and Chevrolets mixed in and ahead of them. Be sure the public hears about these as wll...or simply state that you gving your personal preferences, and that other models are rated just as good...and that you're not giving a commercial.
By Lance Pearch @ 10/05/08 10:25:08 PMreport abuse
Flex Fuel or Better Yet E100 Fueled Vehicles
We should all be buying Flex-Fuel vehicles from whomever we get our cars. That way we could fuel our cars with E-85; or, better yet, E100 that we produce in our own stills. That would be the easiest and quickest way to energy independence for this country.

Permaculturists have known for the last 25 years that we could take back this country's money from the Arab World if we would just use ethanol as a fuel. Just think of all the money we could save if we did not have to protect oil shipments from the Persian Gulf.

Done properly Ethanol is a net positive energy source. Ethanol also burns cleaner and has fewer NOx emissions. The Model T was the first dual fuel vehicle it was built to burn on Alcohol or Gasoline.
By Keith @ 10/03/08 09:19:20 PMreport abuse
Make Affordable Electrics
Many of us Americans are waiting to buy an affordable electric one that is built to hold up to 5, have a 250 mile range and drives about 75 mph. If Japan or US automakers want to sell to us, they'll need to provide what we want. The technology is there, they should capitalize on it.
By Bill @ 10/03/08 02:03:41 AMreport abuse
Thanks for the info Clark
Clark, I listed to you at night on Tulsa's News Talk 740 - KRMG and I used to listen to you when I lived back east as well. I love your advice and was glad that today you talked about the opportunity to get great deals on cars due to what's going on in the economy. My parent are retired and have been looking to get a new car and are partial to the Toyota brand though some of the prices on the Toyta website were scaring them off. I have passed on the info regarding your broadcast to them and I think that it will help them reconsider buying because they can work out a better deal. I have offered to do all of the footwork for them so they can avoid the high pressure sales folks. I have negotiated great car prices for friends in the past, using the info you talk about on air combined with some of my own wisdom and knowledge. Thanks again for another great tip!
By Vinnie @ 10/03/08 12:59:25 AMreport abuse
The Japanese don't make what I want...
I'm partial to rear-wheel-driven autos with V8s and stick shifts, the Japanese just don't make those.
By John @ 10/02/08 11:55:38 PMreport abuse
Why buy domestic?
Why buy a domestic vehicle that will not last as long, be as reliable, or have as
good a resale value if sold? Plus, domestic manufacturers have been lazy in responding to what the American public want and need i.e. a good looking, reliable vehicle that will not break their budget down the road when the tranny goes bad or the engine goes to crap!
Until they can match the overall quality of Japanese manufacturers, I will always consider an import vehicle first.
By ss @ 10/02/08 10:42:00 PMreport abuse
Car buying
Thanks for helping the economy Clark by driving a Scion. Why can't you buy an American product?
By Blake Chaplin @ 10/02/08 09:35:55 PMreport abuse

"Foreign" not so foreign these days

These days "American" cars are more likely to have been built in Mexico or Canada and "foreign" cars almost as likely to have been built in the US. So how is sending money into the pockets of the CEO's of American automakers helping when I can buy a "foreign" car made in TN or AL and help keep workers in the US employed? Don't look at the labels, look beyond the hype.

By JB @ 10/07/08 12:29:01 PMreport abuse

Japanese Auto Makers

As United States citizens,you/we should be more concerned about U.S. auto makers, not the Japanese.Net profits stay here, helps create more net jobs for us, a higher value in the dollar and perhaps better 401 k's, and more secure black ink for U.S. companies. The quality and mpg's are now equal or better for US/Japaneses, and are as cheap or cheaper WHEN compared with like models and sizes. So...promoting and giving credit where due would be an honest and refreshing change from the bias I hear from your program. Perhaps more research on other than a Honda would be a good thing. Go out and drive a Ford or a Chevrolet and see how good they drive, how the fuel economy is on comparable models etc. Maybe you'll be able to help our economy in the process. You should know all the Ford and Chevy models as easily as you spout off Toyotas, Nissans, Hyundis etc.etc.etc. The competition does not experience an even playing field. Japan does not take kindly to auto imports to Japan. The Lexis model is a top rated car, and some Honda models...but not all models in eother company...there are Fords ,and Chevrolets mixed in and ahead of them. Be sure the public hears about these as wll...or simply state that you gving your personal preferences, and that other models are rated just as good...and that you're not giving a commercial.

By Lance Pearch @ 10/05/08 10:25:08 PMreport abuse

Flex Fuel or Better Yet E100 Fueled Vehicles

We should all be buying Flex-Fuel vehicles from whomever we get our cars. That way we could fuel our cars with E-85; or, better yet, E100 that we produce in our own stills. That would be the easiest and quickest way to energy independence for this country.

Permaculturists have known for the last 25 years that we could take back this country's money from the Arab World if we would just use ethanol as a fuel. Just think of all the money we could save if we did not have to protect oil shipments from the Persian Gulf.

Done properly Ethanol is a net positive energy source. Ethanol also burns cleaner and has fewer NOx emissions. The Model T was the first dual fuel vehicle it was built to burn on Alcohol or Gasoline.

By Keith @ 10/03/08 09:19:20 PMreport abuse

Make Affordable Electrics

Many of us Americans are waiting to buy an affordable electric one that is built to hold up to 5, have a 250 mile range and drives about 75 mph. If Japan or US automakers want to sell to us, they'll need to provide what we want. The technology is there, they should capitalize on it.

By Bill @ 10/03/08 02:03:41 AMreport abuse

Thanks for the info Clark

Clark, I listed to you at night on Tulsa's News Talk 740 - KRMG and I used to listen to you when I lived back east as well. I love your advice and was glad that today you talked about the opportunity to get great deals on cars due to what's going on in the economy. My parent are retired and have been looking to get a new car and are partial to the Toyota brand though some of the prices on the Toyta website were scaring them off. I have passed on the info regarding your broadcast to them and I think that it will help them reconsider buying because they can work out a better deal. I have offered to do all of the footwork for them so they can avoid the high pressure sales folks. I have negotiated great car prices for friends in the past, using the info you talk about on air combined with some of my own wisdom and knowledge. Thanks again for another great tip!

By Vinnie @ 10/03/08 12:59:25 AMreport abuse

The Japanese don't make what I want...

I'm partial to rear-wheel-driven autos with V8s and stick shifts, the Japanese just don't make those.

By John @ 10/02/08 11:55:38 PMreport abuse

Why buy domestic?

Why buy a domestic vehicle that will not last as long, be as reliable, or have as
good a resale value if sold? Plus, domestic manufacturers have been lazy in responding to what the American public want and need i.e. a good looking, reliable vehicle that will not break their budget down the road when the tranny goes bad or the engine goes to crap!
Until they can match the overall quality of Japanese manufacturers, I will always consider an import vehicle first.

By ss @ 10/02/08 10:42:00 PMreport abuse

Car buying

Thanks for helping the economy Clark by driving a Scion. Why can't you buy an American product?

By Blake Chaplin @ 10/02/08 09:35:55 PMreport abuse

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Oct 02, 2008 -- Drop in car sales affecting Japanese automakers

What others are saying