Hi Dana In April I moved to Kwajalein, in the Marshall Islands. We're southwest of Hawaii, between Hawaii and Austrialia, about 700 miles north of the equator.
Katie --- Dana Tierney <[EMAIL PROTECTED]> wrote: > Hi Katie, > > Where do you live? > > Dana > > On Mon, 30 Jun 2003 17:44:25 -0700 (PDT), Katie > Howell <[EMAIL PROTECTED]> > wrote: > > > 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 Your ad could be here. Monies from ads go to support these lists and provide more resources for the community. http://www.fusionauthority.com/ads.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
