We Need More Cars!!! Or do We?

       According to an article in Time.com written by Brad Tuttle, entitled Automakers Don’t Have Enough Cars to Keep Up with Buyers, car dealerships sold a lot of new vehicles in the last month. In fact, they would have sold more but they didn’t have enough cars. This is rather surprising, considering the average vehicle purchase price was $31,252. There is really no good explanation for why there has been such a demand for cars when the time to buy is not the best. Right now, the lack of cars and the high demand means that the dealers are less likely to bargain.

       However, for those that are patient, the time may be coming. Because of the high demand in this last month, it is possible that dealerships will get more new cars. If the demand decreases once the cars are at the dealerships, they will have no choice but to sell them at a lower price. 

       I don’t understand this to be honest. Everyone is always complaining about the bad economy and how times are hard and how gas is so expensive, etc. Yet, the statistics show that people are buying new cars left and right. That just doesn’t make sense. I don’t know what is prompting people to buy right now. Perhaps it’s because the people that are buying haven’t bought new cars in a long time and their last one gave out. Or maybe, they got a raise and therefore could afford it. This also makes me wonder whether this is good or bad for the economy. On one side, it could be good because people are actively buying and more money is flowing. On the other hand, if the people that are buying these cars do it in payments and then they fall behind, that isn’t good. 

       This leads me to believe that perhaps people end up in debt because they buy on impulse thinking they can afford things but then they end up not being able to meet the payments and when they least expect it they’re in too deep. This brings me to another question. I wonder if the people who are buying these cars are middle or upper class. If they’re upper class then it makes sense that they would buy even when it’s not the best deal. They can afford to do so. However, middle-class citizens work hard for their money and I would expect them to take better care of it. Ultimately, regardless of who is buying, cars are in high demand at the moment. I’m curious as to how this will progress.