Car? I don't need no stinking car. I have a Huffy one speed beach cruiser with coaster brakes. Of course I have to spray it down with WD40 and replace it every year because of the rust. I've only been here two months and the handle bars are orange!
Was in lurker mode while getting settled. How is everyone? Katie --- [EMAIL PROTECTED] wrote: > <inline> > > > 1) Cars have a fairly large profit margin. > True - even if you see the "invoice" price the > manufacturer "charges" > the dealer for the car, there are "incentives", > "holdbacks", "promotions" > etc. which go to the dealer by back channels. So the > dealer is still making > money even selling near "invoice", and the wholesale > price from the mfg to > the dealer has a lot of profit for the factory. > > > 2) At this point in the economy, auto > manufacturers care about moving lots of > > cars. > True - also at this time in the model year, and time > of the month. > Note that the 2004 models are on the way, and they > need to move existing > inventory to make room and get money to pay factory > for more. > Plus, dealers typically finance their inventory - > called "flooring" as it > puts a floor under the cars. If they can move the > car by the end of the > month, they might save a month's "flooring" on it. > > > 3) Having cheap interest rates entices people to > buy new cars. > Worked for me! > > > 4) The amount of cars being sold outweighs the > loss on lent money. > True. > > > 5) Only the best customers get the "1.9%" interest > rate. Everyone else gets > > gouged. > Yeah, they said you had to have "Tier 1" credit to > get that (which I do). > > It may not be fair, but if you have money you can > save money! > > -Ben > > > > > > ----- Original Message ----- > > From: jon hall <[EMAIL PROTECTED]> > > Date: Monday, June 30, 2003 5:31 pm > > Subject: Re: New car > > > > > Ok...forgive me if this is econ 101, but I got > another one :) > > > > > > So in essence the lending branches of the auto > manufacturers are not > > > traditional banks in that banks borrow money > from the government, and > > > these guys lend money out of their own > pockets...so they do not have > > > to worry about the prime rate. > > > > > > Wouldn't they still be vulnerable to inflation > though? I mean...if > > > they loan money out at 1.9%, and inflation >= > 1.9%, the the real money > > > that the car buyer is paying for the car is > actually amounts to > > > less than the sticker price + interest rate...or > not? > > > > > > If I'm not way off base...my whole line of > thinking is that the auto > > > manufacturers are betting that inflation remains > in check for at least > > > the next 4 years...and for inflation to remain > in check, there can not > > > be a big economic improvement...which usually > from what I've read, > > > will cause inflation to rise until the Fed > checks it with interest > > > rate hikes. > > > Even if inflation is about 1.9% for the next 4 > years...doesn't that > > > make the lending branches of these companies a > lot less profitable, > > > meaning they have to raise prices on the > cars...meaning the inflation > > > rate goes up even more if we get too fast an > increase in > > > inflation, or > > > it stay too high too long? > > > > > > Good god...this stuff is confusing :) > > > -- > > > jon > > > [EMAIL PROTECTED] > > > > > > Monday, June 30, 2003, 6:52:02 PM, you wrote: > > > CG> Your understanding would be correct if it > was straight > > > financing, but it > > > CG> isn't, so,well,it isn't. > > > > > > > CG> These are promotional rates and have nothing > much to do with > > > actual intrust > > > CG> rates like the "prime" rate and the > overnight rate. They are > > > usually funded > > > CG> by the manufacturer, but usually the dealer > has to kick in > > > something as > > > CG> well. Most of the big auto companies have > their own lending > > > arm, and,oddly > > > CG> enough, it is often the most profitable part > of the company. > > > > > > CG> There is no line relationship between > interest rates and > > > inflation. > > > CG> Cary Gordon > > > > > > CG> 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 > > > >> [EMAIL PROTECTED] > > > > > > > > > CG> > > > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| 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
