Even though forecasters predict a slow 2008 for automobile sales, many dealerships are hoping for a steady recovery toward the end of the year.  More specifically, some dealers are backing up their hopeful outlook by reinvesting money back into their own businesses.  Their stocking levels and ordering project 2008 will be about the same as 2007. 

Some think 2008 will have some late momentum and that things will start to get better. They are hopeful that they saw the bottom in 2007. In 2007 just over 16 million cars were sold in the U.S., down from almost 17 million the previous year. 

In Detroit, analysts predict that 2008 may fall to around 15.5 million cars and trucks. Regardless, dealers will be looking for a way to increase profits.  The aftersales market, including auto warranty sales will probably be a great way to make more money.  Dealers who sell new car warranties and used car warranties generally make $500-$1,000 dollars on each warranty sale.  Aftermarket auto warranty companies are their only threat as they have much smaller markups so their prices are considerably lower.

I guess time will tell, we’ll check again in January 2009.