boxst

I just wondered what happens to prices during a recession. This is for 'luxury' goods like televisions, cars etc..

Theoretically things should get cheaper as there is much less demand, BUT if there is less demand production is cut which means that goods cost more to make.

Any ideas?

Steve

davegtt

I think the general idea is there are alot more bargains about like cheaper tellies but the idea is alot of people dont have as much money to spend so it still seems expensive

Midlife......

iTrader: (2)

As I understand it goods should get cheaper in a recession as suppliers cut prices in the face of a shrinking market. They themselves cut costs by making people redundant etc.

However if inflation is high then the pound in your pocket is worth less so the "amount" of money you need to buy things increases.

"stagflation" I think is the term..... time for a wikipedia search LOL

Shaun

Midlife......

iTrader: (2)

Stagflation - Wikipedia, the free encyclopedia

TelBoy

The UK had a very brief period of stagflation, for about three months, up until i'd say the end of August. Right now Steve, it's a one way street. Cheaper all the way. That's if the companies who make the stuff survive. Ain't i the cheerful one?

yoza

If fuel prices keep coming down as they are, and it due to the recession...

Then I quite like the idea of a recession.

A bit like the dreaded global warming...Im all for it if it gives us a 1970's summer as opposed to a "quite nice day" in July.

GC8

The problem will be, that people wont be leasing X-Types.....

yoza

Dont worry we have the FreeLander to bail us out ... "cough"


LRX.....looks around..{who said that?}

GC8

yoza

I hope not.........Giz a job!

David Lock

Goods made in UK will be cheaper because manufacturers and retailers need cash to survive which is their lifeblood.

But imported items linked to $ prices (fuel included) are, in theory, 25% more expensive than they were a few months ago as the pound/dollar rate has dropped like a stone. dl

zs_phil

iTrader: (1)

haggle your way around the salesperson , i haggle all the time especially now if they dont budge just go in another shop and say they said this for that price .

Pete

BUT the real question is WILL you all stop spending on your Imprezas??

PaulC72

the best time to buy things is on the downward part of the recession as this is when things become cheapest as we start to come out the other side 'the upward peak' prices will start to become more expensive again.
Although with inflation it does tend to cloud the whole thing.

Suresh

Prices coming down, down, down as supply continues to exceed demand. I'm expecting to be able to buy a 997 instead of a 996 (if the missus lets me that is)

stevebt

iTrader: (8)

The embarrasing thing is I have cut back on day to day spending but I have still finished some mods on my car which could of easily of been put off and will cost thousands