PSoTD

The chairwoman of the National Automobile Dealers Association says the credit crunch and economic problems are likely to cause 700 auto dealers in the U.S. to go under this year.

There's more to it than that, I suspect.

My wife and I have larger vehicles that do not get the greatest gas mileage. On the other hand, mine is paid off, and hers will be in a few months. Yes, gas prices are high, but the truth of the matter is that I drive my car less than 8000 miles per year, and that's WITH vacation driving, and although she commutes five days per week, it's mostly highway driving. I suspect we drive less than the average family of four, thanks to my working at home.

My question is this: what is our economic incentive to buy a new car? Both of our vehicles are in pretty good shape. Miles per gallon could and should be better, but frankly, I think that buying a new car today is a fool's game - if technology doesn't improve MPG dramatically in the next five years - or replace MPG with a different fuel source altogether - then humanity is pretty well screwed by our own lack of initiative. I'm betting that cars five years from now will render the new cars of 2009 as relatively obsolete, or at least of little value on the resale market. So what is the economic incentive to buy a new car? I don't get it.