No production scheduling update this week?

[dfwford]

It still rings true, to some degree. It will rarely benefit a customer to advertise, from the start, that they intend to pay cash. The bank obviously makes money from financing, and the dealer makes money from the bank making money.

There's alao the fact tthat you're paying for somerhing that depreciates significantly once you drive it off the lot.

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[zaimer]

There's alao the fact tthat you're paying for somerhing that depreciates significantly once you drive it off the lot.

Yeah, but you can minimize that or eliminate it completely with the right deal & vehicle. I certainly wouldn't pay full sticker on any of the new Mustangs, other than maybe the DH.

 

[dfwford]

Yeah, but you can minimize that or eliminate it completely with the right deal & vehicle. I certainly wouldn't pay full sticker on any of the new Mustangs, other than maybe the DH.

With a FMV used car, a cash purchase might make more sense.

But definitely not a brand new car, IMO.

 

[zaimer]

With a FMV used car, a cash purchase might make more sense.

But definitely not a brand new car, IMO.

I wouldn't want to purchase any used vehicle currently at FMV. Even at FMV most are still way overvalued IMO. It is uncharted waters as to what the used market will or will not do. It also changes the game a bit when we are looking at a newly released model (as we have with the MY24 Mustang) versus one that has a large inventory of used units in the market.

 

[dfwford]

I wouldn't want to purchase any used vehicle currently at FMV. Even at FMV most are still way overvalued IMO. It is uncharted waters as to what the used market will or will not do. It also changes the game a bit when we are looking at a newly released model (as we have with the MY24 Mustang) versus one that has a large inventory of used units in the market.

True.

 

[Smaaron]

With a FMV used car, a cash purchase might make more sense.

But definitely not a brand new car, IMO.

I don’t see the difference. If you finance at 7% you’re paying a lot more for the car than you have to. I guess you could try to flip cars by not keeping them long, but I don’t see that going well in a normal economy . I’ve always lived by the principal that if I can’t pay cash, I can’t afford it. Not having house or car payments makes life pretty stress free.

 

[dfwford]

I don’t see the difference. If you finance at 7% you’re paying a lot more for the car than you have to. I guess you could try to flip cars by not keeping them long, but I don’t see that going well in a normal economy . I’ve always lived by the principal that if I can’t pay cash, I can’t afford it. Not having house or car payments makes life pretty stress free.

Besides being able to flip it or trade it in, the thing with financing is that it does help your credit score as well.

That said, you also have a point. It's just a sucky time to buy a car in general.

 

[zaimer]

I don’t see the difference. If you finance at 7% you’re paying a lot more for the car than you have to. I guess you could try to flip cars by not keeping them long, but I don’t see that going well in a normal economy . I’ve always lived by the principal that if I can’t pay cash, I can’t afford it. Not having house or car payments makes life pretty stress free.

It isn't a bad principle to have, but some people fall into the trap of thinking that paying off their debt is always the best move. That isn't always the case.

I'll use myself as an example. I had refinanced the mortgage when the market was rock bottom, so near a 2% rate. I can make over double that, after taxes, on a no-brainer guaranteed return. A HYSA would be the easiest/safest way. So my cash is much more valuable than paying off debt at the measly 2%. The interest gained on a HYSA covers the interest being paid on the mortgage, the taxes on the interest gained, and you still have money to pocket. Win-win-win.

This is just one easy example, but there are many. I don't feel like typing on here all day.

 

[dfwford]

It isn't a bad principle to have, but some people fall into the trap of thinking that paying off their debt is always the best move. That isn't always the case.

I'll use myself as an example. I had refinanced the mortgage when the market was rock bottom, so near a 2% rate. I can make over double that, after taxes, on a no-brainer guaranteed return. A HYSA would be the easiest/safest way. So my cash is much more valuable than paying off debt at the measly 2%. The interest gained on a HYSA covers the interest being paid on the mortgage, the taxes on the interest gained, and you still have money to pocket. Win-win-win.

This is just one easy example, but there are many. I don't feel like typing on here all day.

Another good point.

The money you're not sinking into an expensive but depreciating asset all at once can be invested in other ways to generate income for yourself.

While off-topic, this is a good discussion. It has me thinking for sure, lol.

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