Your understanding would be correct if it was straight financing, but it isn't, so,well,it isn't.
These are promotional rates and have nothing much to do with actual intrust rates like the "prime" rate and the overnight rate. They are usually funded by the manufacturer, but usually the dealer has to kick in something as well. Most of the big auto companies have their own lending arm, and,oddly enough, it is often the most profitable part of the company. There is no line relationship between interest rates and inflation. Cary Gordon At 06:16 PM 6/30/2003 -0400, you wrote: >Congratulations :) > >I want to branch a little though...isn't 1.9% less than inflation? >Doesn't that mean that over time, if interest rates rise, they will be >making less money? Especially considering the fact that with all this >built in economic stimulus...we are bound to see a really big uptick >in inflation if/when everything starts to turn around. > >Or is my understanding of how this works incorrect? > >-- > jon > mailto:[EMAIL PROTECTED] ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Archives: http://www.houseoffusion.com/cf_lists/index.cfm?forumid=5 Subscription: http://www.houseoffusion.com/cf_lists/index.cfm?method=subscribe&forumid=5 Host with the leader in ColdFusion hosting. Voted #1 ColdFusion host by CF Developers. Offering shared and dedicated hosting options. www.cfxhosting.com/default.cfm?redirect=10481 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
