Since November 2007, I have been harping on to my friends and family about how the US economy is actually in a depression. Those who know me well agreed immediately, as I am one of those fortunate people who happen to be the first to experience things.
Good question.
In order to spare you the similarities between now and 1929, let me get right to the point: The differences.
You see, back in 1929, things were much harder back then. The 1929 American did not have drive through convenience, television, internet – not even an automatic garage door opener. What they had instead were homes without central heating, cute little boxes outside commonly referred to as “the outhouse,” and self-reliance.
In contrast, the modern depression of today is slightly less exciting. As a result, you will never see Americans in a bread line because we have alternatives – Taco Bell, McDonalds, and Subway, for starters. However, anyone keeping tabs on current events will recall the recent multi-billion dollar bailout of banks and automobile manufacturers. In case you just missed it – what I am trying to explain to you is the fact that the bread line came and went in the form of massive government handouts to corporations.
So, in the meantime, as auto dealerships close their doors, and as autos sit by the wayside at ports (and on the boats that move them around the world), your best bet is to hold on to what you have.
Most importantly, as things begin to pick up (or if you are in the unfortunate position to have a need for a new car) make sure you do not lease anything. That is to say, if you are not going to buy smart and get a used car, make sure that your new car is not one of the examples seen sitting in a marine environment for months on end.
And make sure you get a warranty! With the abysmal depreciation in the market, the last thing you need is a car in need a of new transmission or some other repair that is likely to exceed the value of the car.
