Hot damn I love putting soup in a pot...and STIRRING IT

 

Yup, most of the buyers are using financing because it's so cheap so we'll see how it plays out. When the pain starts, the toys are the first things to go.

 

According to my dealer rep 80 percent of 911’s are paid in cash. Median income is something like 780K. Hoping for a crash is stupid. It would affect almost everyone in ways that far exceeded any ADM on a car.

 

If you are making 10%+ without trying, even with Biden in the seat, in the market, and financing $140k is 1%......why would you not finance. It boggles my mind that people talk about financing as being stupid.

 

I agree it’s crazy for anyone hoping for a crash is insane because we all take a beating. I cringe when I look at my investments but will weather the storm. I do believe leverage will feel some pain as it happens when because some get concerned they sell toys. I would question 80% of 911 being cash buy/average income 780k as the dealers have no source to get the information when you pay cash. I cash out my cars, and you fill out the necessary paperwork and cut the check and go. Unless your info comes from some average financial stats, but to your earlier point fully agree wishing for a crash is nuts.

 

mathematically you are correct but personal finance is 80% psychology. it’s easy to be OK with a couple hundred per month more on a loan vs. $30k-$40k more cash upfront… I.e. many spend beyond their means when financing/leasing. You are assuming the person actually has the full $140k in cash AND he will invest all of it in ‘sage’ investments. You are also assuming a 10% market growth but that is long-term, so if said buyer times the market wrong and takes out, he’s screwed. Don’t forget you are also paying huge interest on the loan, it impacts cash flow, and you pay capital gains on that market growth.

Some just don’t like payments.

of course, you know you best and everyone’s circumstances are different

 

you should ask if the other 20% are flippers who make $80k / year and finance with 144mo / no money down loans haha

 

Because the peace of mind of bo debt is worth more than the $1500 you will make short term investing your money (assume you invest it)

Nothing wrong with financing when you are using it smartly. Nothing wrong with paying cash if you want peace of mind and no debt.

 

i hope I'm going to make more than $1500 on 140K over 6 years ?? But I hear you on the peace of mind. Everyone has their plans. I just don't like the fact that people make assumptions about financing that suddenly implies that someone can't afford something. It's nuts. This country is built on debt.

 

yes, for sure the return is probably more than 1500. But what if it isn’t. There is risk, taxes etc. Where are you going to get a guaranteed return that is worth it? Have you seen crypto? The stock market bull run seems to have hit a wall. What if the money you invest goes down in value and you still have car payments?

To me- I’d rather write the check and not worry about because I have other investments that are performing for me.

Im by no means judging anyone that chooses to finance. If someone chooses to do so- absolutely no problem. I Was just commenting on the comment of why would someone pay cash when they can invest the difference. For me- the peace of mind of a paid off car is worth more than any nominal return I can muster in a few years.

 

Financing is a piece of cake if you make good money, have good credit, and therefore pay your bills and get low interest rates. The elites will tell you it's foolish. Actually, homie, it isn't.

Or you could be like my father and drive a Subaru Ascent like an old female art teacher, and have him tell me I don't need any toys. What a f* downer.

 

it’s subjective but a smart person won’t care, it’s your money, not mine

 

I dont think that anyone is "hoping for a crash".
I'm certainly not.

But I'd highly question how your dealer rep would even have the slightest clue about how "80% of 911's are paid in cash",
let alone why anyone would believe a dealer rep about anything financially related in the first place.

 

I'm not saying a bubble is popping, but markets are in a very precarious position;

• Rates have bottomed after a 40 year decline so unless the Fed decides to go negative the gravy train of 15%+ returns for a decade is ending.
• Corporate debt is at an all time high. A large portion of corporations debt load is so large that their earnings will not cover debt repayment if rates rise just 1%.
• Rate hikes will not affect GT buyers is no entirely accurate. It may not affect their wealth, but it will affect their customers and directly affect their income.
• If inflation in food and energy continues at the current pace it will destabilize countries politically around the world.

All of this could cause consumer psychology to deteriorate significantly. If consumers turtle in general, things could change in a hurry.

 

l’ve know the man 15 years, extremely intelligent. Believe what you want.