This is going to hurt- trade in values.
11-18-2008, 11:54 PM
#16
Drifting
On the plus side, maybe by the time I get around to trading it in, it will be for a new TDI-Hybrid that gets 70mpg.
11-19-2008, 12:16 AM
#17
It's a globally complex problem, but I think fundamentally, the US has hit the point where individual borrowing and federal treasury borrowing has hit the limit of what our economic engine will support. Americans owe more then ever before, both individually, and nationally as the US debt hits 11 trillion.
I think the fundamental fix is we're going to (on average) have to go on a shopping diet for a couple years relative to what we manufacture and build. If on the other end of this pipe Americans are required to put more down, and borrow less for purchasing flat screens, SUVs, and homes, we'll be better off.
Economists that propel policies to once again enable excessive lending to promote excessive purchasing (relative to one's means) are just postponing the diet we ultimately need.
But its never fun when the party ends for those that were living near their financial limits. I think prices will continue to drop, from TV's to cars to homes into 2009 as we work our way through this.
I think the fundamental fix is we're going to (on average) have to go on a shopping diet for a couple years relative to what we manufacture and build. If on the other end of this pipe Americans are required to put more down, and borrow less for purchasing flat screens, SUVs, and homes, we'll be better off.
Economists that propel policies to once again enable excessive lending to promote excessive purchasing (relative to one's means) are just postponing the diet we ultimately need.
But its never fun when the party ends for those that were living near their financial limits. I think prices will continue to drop, from TV's to cars to homes into 2009 as we work our way through this.
11-19-2008, 01:33 AM
#18
11-19-2008, 10:48 AM
#19
Three Wheelin'
To all the naysayers, this thread partically proves my point about the beauty of leasing...why stress over buying a "depreciating" asset...Lease a beautiful car, drive the pants off of it, turn it back in, and get a new one...its like xmas every three years....
11-19-2008, 11:48 AM
#20
Read up on "deflation". Market is filled with product that no one can buy, prices drop. Because no on is buying product, unemployment goes up, more product sits on shelves. It's not just happening in cars. This is a very difficult cycle to get out of.
11-19-2008, 11:54 AM
#21
11-19-2008, 11:58 AM
#22
Rennlist Member
if one bought the car by paying off 100% cash up front, I don't see where the stress is coming from. No monthly payment to worry about. Sure it has depreciate a lot, but nobody forces you to sell it.
11-19-2008, 12:18 PM
#24
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Apparently we will begin to see the first shift back towards normality in April 09. The recovery will finally feel like we're close to being back to normal around February 10. In the meantime hang on to what you've got and enjoy it. Let the dealers bleed for scalping us with "market adjustment pricing" and let them figure out how they're going to pay for their health care insurance. Then come back and squeeze their n*ts on pricing on pricing. What goes around comes around.
if you want to sell your car before the end of your lease, you're going to get hit by this market too, right?
if one bought the car by paying off 100% cash up front, I don't see where the stress is coming from. No monthly payment to worry about. Sure it has depreciate a lot, but nobody forces you to sell it.
if one bought the car by paying off 100% cash up front, I don't see where the stress is coming from. No monthly payment to worry about. Sure it has depreciate a lot, but nobody forces you to sell it.
Nick- this is what I do, and despite eating Ramon Noodles at the moment, I love what I do. LOL
11-19-2008, 12:45 PM
#25
Burning Brakes
After selling my NSX earlier this year I was really torn. My heart wanted another sports car but the mind told me to invest the money and sit it out. At the end of the day we decided that since we're already doing "all the right things", we should live a little and we ended up buying the Carrera S.
For a while I kept thinking "what have I done"? But each quarter I get my 401K and brokerage statements I realize that the depreciation I'm suffering on my new P car is nothing compared to the evaporation I'm seeing in the market.
Plus... I love driving the damn thing!
11-19-2008, 01:02 PM
#26
Three Wheelin'
if you want to sell your car before the end of your lease, you're going to get hit by this market too, right?
if one bought the car by paying off 100% cash up front, I don't see where the stress is coming from. No monthly payment to worry about. Sure it has depreciate a lot, but nobody forces you to sell it.
if one bought the car by paying off 100% cash up front, I don't see where the stress is coming from. No monthly payment to worry about. Sure it has depreciate a lot, but nobody forces you to sell it.
The theory behind leasing is that you pay for the use (cost thereof and interest on that cost) of the asset only - assuming the lease has been appropriately negotiated. To the party leasing, the end value is of no moment (except as part of the negotiation process). To the buyer, the end value is obviously always of importance (as it is what you can get out the transaction for).
Leasing is very smart in circ where the payment is deductible (and one is not using the tool to extend beyond means).
Likemystoppie? - Now, to the important question, will we finally be able to steal Porsches off lease or will the residual be non-negotiable as has been the case????
11-19-2008, 02:28 PM
#27
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If you want (read: need? - as that wld be the only circ where negative market conditions wld apply) to sell your car before end of lease term you should not be leasing.
The theory behind leasing is that you pay for the use (cost thereof and interest on that cost) of the asset only - assuming the lease has been appropriately negotiated. To the party leasing, the end value is of no moment (except as part of the negotiation process). To the buyer, the end value is obviously always of importance (as it is what you can get out the transaction for).
Leasing is very smart in circ where the payment is deductible (and one is not using the tool to extend beyond means).
Likemystoppie? - Now, to the important question, will we finally be able to steal Porsches off lease or will the residual be non-negotiable as has been the case????
The theory behind leasing is that you pay for the use (cost thereof and interest on that cost) of the asset only - assuming the lease has been appropriately negotiated. To the party leasing, the end value is of no moment (except as part of the negotiation process). To the buyer, the end value is obviously always of importance (as it is what you can get out the transaction for).
Leasing is very smart in circ where the payment is deductible (and one is not using the tool to extend beyond means).
Likemystoppie? - Now, to the important question, will we finally be able to steal Porsches off lease or will the residual be non-negotiable as has been the case????
Cello- go check out my comments on the 997 Turbo forum; I made an example of off lease cars.
Now with regards to stealing a 997? The reality is less then 20% of ALL 911's are leased. That doesn't leave to many cars that go to auction. I'd go as far to say that less then 5% of those cars actually REACH an auction.
They're more then likely traded out and the Porsche dealer has put them into a new 911.
I've made comments on this situation as well.