Sunday, February 1, 2009

Borrow. Spend. Repeat.

I thought the opening line on the Chrysler Financial website was just a little too bold -- "We've got $1.5 billion to finance vehicles."

They've got? Well, I suppose they do now, now that we've bailed them. But man, to announce it like that, it's like a housewife telling a party full of unemployed people how great it is not to have to go to work. Completely without class.

Nonetheless, we aren't looking forward, are we...looking to the day where we don't have to borrow money to spend money and lock ourselves into another debt chain and then have to do it all over again. Exactly why would now be the perfect time to finance a new Charger?



Seems that it's always the perfect time to finance a new vehicle. Most certainly, the Super Bowl tomorrow will highlight sixteen different makes and models during the five hour telecast, each of which probably carries a $4,800 dollar premium per vehicle to pay for all that advertising.

That's just a guess, but I'd bet I'm pretty close. Knowing that the U.S. has the highest number of vehicles per person (845 per 1,000 people), and knowing that a certain percentage are replaced each year (10 to 16 million), you'd think that there would be no need to spend money to advertise something that Merikans take as their birthright, multiple vehicle ownership. How much of your newspaper is nothing but full-page dealership ads? 5%? Web advertising, billboard advertising, radio advertising, TV advertising, direct mailer advertising, sporting event banner advertising, magazine advertising...and I'm sure I'm missing many other ways they advertise. "The official SUV of the 2004 Olympic team." That's usually my favorite.

Edit: According to the 2003 Automotive News Market Data Book, automakers spent $508 on average to advertise each vehicle sold in 2002. So I was wrong, wrong by a factor of ten.

No comments: