wow. Major envy. Dana
On Tue, 1 Jul 2003 10:08:14 -0700 (PDT), Katie Howell <[EMAIL PROTECTED]> wrote: > 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 Get the mailserver that powers this list at http://www.coolfusion.com Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
