Quote:
Originally Posted by Spa2k
Model proliferation is necessary to keep manufacturers profitable - and to provide enough research, development and marketing resources for future models (like the M2) that aren’t mainstream, bread-and-butter models.
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The foundation of proliferation, though, is cheap and easy credit.
Most people on this list don't remember a time
when you couldn't walk into dealership in Bumfuck, North Dakota, provide a SS#, get credit, and drive off. That was the 80s and there were no centralized databases or easy way to establish credit risk - so just GETTING credit was a time-consuming process.
And, assuming you could get credit, IT WAS EXPENSIVE ... but it's been getting cheaper for 30 years so basically more and more people can "afford" more and more car.
In 1989, you could've been looking at a 10%+ interest rate on your car loan!!
The time of cheap credit is going to change.
In the meantime, here's your graph of exclusivity-loss and proliferation of high-priced sport models:
Early 1980s Honda Civic hatchback, 60HP ... an "economy car" - those interest rates made the Japanese car industry ... cheap credit made the German car industry
