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Tuesday, November 04, 2008

Take Heart, American Friends

Somewhere in the world, business carries on more or less as usual.

This report shows Canadian auto sales hitting a record in October, while US car sales are reaching new heights of terribleness.

Automotive industry expert Dennis Desrosiers wonders whether Canadians opened their "investment statements" in October. Don't they know they're poor? But hey, that's thinking like an American!

Canadians have less propensity to buy or not buy things based on whether they feel prosperous. On average, my visual observation suggests that Canadians tend to keep their cars longer, and a large number of them are driving around in crappy, beat-up cars. In the US people trade them in more frequently and on average, try to keep up with the Joneses a bit more.

North of the border was seeming so shabby, by comparison. All those dented fenders and dark green Ford Escorts and ancient Hondas. Yep, it all seemed kind of pointlessly frugal ... until now.

Now, when it truly comes "time" to go ahead and get a new vehicle, for Canadians, it's time, period. And if employment doesn't completely go in the tank, with the relatively robust state of Canadian mortgage ratios, and the like, Canadians will by and large be able to finance their new vehicles. And if prices improve or exchange rates help some people earn a bit more, sales will actually go up.

Meanwhile, it's morning in America. Today's the day. Good luck, everyone!

Posted by Andrew Goodman




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