The uncertainty, or should I say, the certainty, of pending regulations on business has put this country in a perpetual state of constipation. With the tremendous amount of regulations and penalties that have already been put into effect since Nancy Pelosi and Harry Reed took over the country in 2006 and the acceleration of this trend since the election of Barack Obama, the U.S. is like a behemoth waiting to explode. The number of deals that are waiting on the sidelines until after the election are beyond comprehension just by taking the ones I’m aware of and multiplying them by the ones I’m not aware of.
If the election results in the incumbent’s re-election and the current Senate still in the hands of the Democrats, we will continue to see the fits and starts of the past few years. But, if the Senate and presidency go to the Republicans, I’m positive that the laxative will have taken effect and the psychological effect will be beyond any actual change in policy. Why, because business works on futures, in other words, what can be projected into the future. That’s where investment moneys go, into future profits…or at least the speculation of future profits. That’s why when a president gets on the TV and wags his finger at us that increasing oil production at home will have no effect on current gas prices, he’s not just wrong….he’s incredibly wrong.
How this will affect the sales of automobiles in this country will not immediately provide large increases. This is because the money that is waiting on the sidelines is for business expansion and venture capitalists for new and expanded enterprise. The mid-term result of those investments will then provide more people with employment which in turn will provide more purchases of motor vehicles.
So, if you are an automobile dealership, you will see moderate increases in sales for the first several months following the positive results of this election which will then be followed by some of the largest increases in sales about 5 to 8 months thereafter. Look for a huge May, June and July of 2013…unless, of course, we stay the course.