Car Market: Another Convict of US Recession

The ongoing economic recession in US is unleashing perils for the market everywhere. The car market which used to be considered one of the flagrant section of the market with the highly passionate buyer there, is also suffocating the frills of the recession. Almost all the car brands are now witnessing a sharp decline in their sales that is seen mainly as the contracted number of buyers for having severe credit crunch.No one has assumed ever that US which are considered to be one the vibrant market will face such an acute decline in the car sales. It is to be noticed that US consumers have also been considered for their higher expenses that amount for the highest purchasing power all over the world.

Car that has been remained one the most favored purchasing with US consumer too is witnessing a apparent decline in the sales, as consumers has stopped on such purchasing to fight with the crunch backed by the current economy.The data shows that how far the scene is different for car market from the previous year. The leading care brand Nisan has 37% decline at sales where as other players too has more or less the same crunch like, 34% with Ford, 33% with Chrysler, 32% with Toyota, and 24% with Honda.However the General motors has somewhat different scene and it is striving with a little bit lesser decline of 16%. But when we see the overall performance for the entire car market the sales decline reaches almost 26%.

The market analysts may have slight differences but in sum they all reach to the same conclusion and are finding the recession as the single factors for its declining. While some of them are blaming the unexpected hike in oil prices also that is hampering the decision of potential buyers even having a plan for buying a car in such condition.Though, the major factor behind this sales decline is seen as the result of credit crunch and avoidance of credit lending by the banks which has been one the best ways for financing the car buying. It is to be noticed that collapse of major financial institutions and increased rate of interest has really stiffen the flow of money in the market that is another worry for these car companies.Seeing the current scenario of car market there one of industry analyst has stated that the country is really passing under a recession while a market analyst has equaled the situation with natural disaster.