Some say that if an ad is bad enough, it sticks the product name into the head of the consumer, which makes it successful. While a very well produced ad can potentially make the consumer focus on the ad instead of the product.
That reminds me...my friend's Dad had a Studebaker-Packard-Willys-Nash franchise in the early fifties but gave it up in late '56. He went to work as a sales manager at a Pontiac dealer. My friend said he came home and said, "It's amazing! People come in almost hynotized, asking 'where do I sign?'". He hadn't experienced that before. I'll assume it's sort-of like that with a Toyota dealership today, but maybe not.
2024 Chevrolet Corvette Stingray 2LT; 2019 Chevrolet Equinox LT; 2015 Chevrolet Cruze LS
I had a MB salesman tell me sort of the same thing - he doesn't do a hard sell as much as show and explain. The cars/badge sell themselves. The Toyota rep probably works similar - you could put a Toyota badge on a Yugo and they'd sell 100K of them.
My dealer friend sold a $6K Packard Caribbean convertible, one of 276, at his little dealership in Greenville, PA. I always gave him a lot of credit for that, although he'd say there wasn't much selling involved as "Doc" Bailey knew what he wanted. BTW, the doc traded in a '55 Thunderbird.
The Caribbean my friend sold survives in Denmark.
2024 Chevrolet Corvette Stingray 2LT; 2019 Chevrolet Equinox LT; 2015 Chevrolet Cruze LS
That sounds like a reasonable guess to me. Lots of labor, plus fixed overhead spread over a low volume. What is an average Ferrari, maybe $250-300K at the manufacturing cost line?
Not a bad guess you guys, but too low! Ferrari is unique among automobiles in two ways. One, it really isn't branded as a car anymore--it's branded as a luxury item; two, it has an options list that is truly mind-boggling.
Cadillac seemed to tie their future to being Germanic with trendy design. But that market was already full. We'll see if Lincoln can do better with their more traditional American luxury approach. Lexus kind of filled that niche, but has recently gone a little wild with design. Good friend has around a '15 RX, but said he wouldn't touch the "ugly" new ones. I guess time really will tell on all of this.
I saw a TV commercial this morning for the Lexus UV. Man, that thing is yugly or fugly or whatever word you want to use. I do believe if I won one in a giveaway, I would sell it immediately.
Cadillac seemed to tie their future to being Germanic with trendy design. But that market was already full. We'll see if Lincoln can do better with their more traditional American luxury approach. Lexus kind of filled that niche, but has recently gone a little wild with design. Good friend has around a '15 RX, but said he wouldn't touch the "ugly" new ones. I guess time really will tell on all of this.
I don't think the '15 Lexus were lookers either.
'15 Audi Misano Red Pearl S4, '16 Audi TTS Daytona Gray Pearl, Wife's '19 VW Tiguan SEL 4-Motion
A very short article, and not really very informative. I remember reading, maybe a couple of years ago, about an upswing in subprime car lending and how this could lead to some serious trouble. I expect we all remember the subprime mortgage lending, and what that lead to. Shudder!
Thanks for the link, an interesting read. We all know that many car buyers do not do a good job of shopping for the best deal (think how popular CarMax is). And apparently they also do a poor job of shopping for the loan to buy the car.
-=-=-=-=- begin quote -=-=-=-=-=
The bank says more than 50 percent of auto loans go to subprime borrowers with credit scores less than 620. Mark Hamrick, senior economic analyst at Bankrate, notes that these buyers end up paying more to finance their rides.
“Many borrowers who aren’t well qualified, meaning they have low credit scores, have been paying higher interest rates on their auto loans, making it additionally challenging for them to not only pay off the loan but capture equity in the vehicle,” says Hamrick. “There’s something about the allure of automobiles that prompts too many buyers (and borrowers) to fail to sufficiently shop around for the best loan as well as a better deal on a vehicle.”
Thanks for the link, an interesting read. We all know that many car buyers do not do a good job of shopping for the best deal (think how popular CarMax is). And apparently they also do a poor job of shopping for the loan to buy the car.
-=-=-=-=- begin quote -=-=-=-=-=
The bank says more than 50 percent of auto loans go to subprime borrowers with credit scores less than 620. Mark Hamrick, senior economic analyst at Bankrate, notes that these buyers end up paying more to finance their rides.
“Many borrowers who aren’t well qualified, meaning they have low credit scores, have been paying higher interest rates on their auto loans, making it additionally challenging for them to not only pay off the loan but capture equity in the vehicle,” says Hamrick. “There’s something about the allure of automobiles that prompts too many buyers (and borrowers) to fail to sufficiently shop around for the best loan as well as a better deal on a vehicle.”
Choosing a vehicle with better than average depreciation helps, too.
4 years ago, the wife and I bought a 2015 Subaru Outback 3.6R. We rolled in something like $3500 of negative equity, and we added an extended warranty as well as GAP insurance.
Because we live in Colorado, the depreciation was not like a rock, but more a feather. I received a buy bid a week or two ago that showed we have close to $6000 in positive equity, were we to sell.
What has good (read: low) depreciation? I'd say most Toyotas and Hondas, pickup trucks of all brands, Subaru in the Mountain West, Pacific NW and New England. There may be others (Lexus and Acura?), but finding the right vehicle with the right loan should help minimize the possibility of being upside down.
As far as budget goes, folks want to have the newest, flashiest, most loaded version. A $22,000 Accord will be just as reliable as a $32,000 Accord, and is likely to depreciate slower.
So you're saying the Rolls-Royce Dawn convertible might not be the right car for me?
Stagnant wages and lack of economic mobility, rising new car prices, lack of financial education all can align for a storm. But a small storm compared to the mortgage fiasco.
So you're saying the Rolls-Royce Dawn convertible might not be the right car for me?
Stagnant wages and lack of economic mobility, rising new car prices, lack of financial education all can align for a storm. But a small storm compared to the mortgage fiasco.
Only if you can't afford the $5000/mo lease payment. Since you're renting and don't have a mortgage, perhaps you can.
The wage thing I completely agree with. Lack of financial education depends on the individual. My son, who barely was able to graduate HS, has managed to keep himself out of serious debt as he approaches his 30th birthday. Just bought his first car with payments attached to them last year, but is only spending $350/mo.
I've seen signs that the lessons learned a decade ago may not have completely sunk in; exotic mortgage products are making a comeback.
Well I'd have to live in it, and stop funding retirement and savings, and live on bread and water, but I might be able to eke it out.
I think financial education in reality comes from parents. Schools don't teach it. My parents weren't spendthrifts when I was a kid, and I saw the drama when bills were due. Because of this, I live below my means in some ways so I can enjoy other things. Some may cringe at even what I spend on a sweetheart lease, but the way I see it, these are the good old days. However, some may not be aware enough to learn financial lessons from family. Schools should be doing a lot more to teach basic financial literacy, but with the test-based system now, teachers haven't the time, and not to be a conspiracy theorist, but I think the banking and finance industries approve.
I haven't seen any data that we are close to 2006, yet anyway. There are some zero down programs out there, but not the general malfeasance, nor the bubbles in some areas where local jobs don't support it (Atlanta, Vegas, inland CA, etc). Anbd if it does happen again, maybe this time the FIRE sector will have to actually pay a price. Yeah right.
Only if you can't afford the $5000/mo lease payment. Since you're renting and don't have a mortgage, perhaps you can.
The wage thing I completely agree with. Lack of financial education depends on the individual. My son, who barely was able to graduate HS, has managed to keep himself out of serious debt as he approaches his 30th birthday. Just bought his first car with payments attached to them last year, but is only spending $350/mo.
I've seen signs that the lessons learned a decade ago may not have completely sunk in; exotic mortgage products are making a comeback.
I really just had the basics. State income tax, property tax on the house, and mortgage (and heloc) interest. Plus a little bit of charitable deductions. Nothing exotic.
oh, I already expected to be using the new higher standard deduction. I should be OK, because in the past few years, my itemized deductions came out to be right about that anyway.
oh, I already expected to be using the new higher standard deduction. I should be OK, because in the past few years, my itemized deductions came out to be right about that anyway.
It's kind of a bummer, in some respects. I have a big capital gain for 2018 (taxes paid in 2019). So, a big chunk of state tax paid this year, that I won't be able to deduct off my federal taxes for 2019. (because of the $10K SALT limit).
On balance, less overall tax paid with the new tax cuts. Not itemizing is okay, but I still have the same record keeping, because the standard deduction for our state is around $3000. So, I itemize there.
I won't get into the macro-economic impact, due to our forum rules.
I think financial education in reality comes from parents. Schools don't teach it... However, some may not be aware enough to learn financial lessons from family. Schools should be doing a lot more to teach basic financial literacy, but with the test-based system now, teachers haven't the time...
^^^ This X 1000. As long as the “teach to the test” method is used in our schools, we will continue to turn out “common sense-less” kids. I don’t blame the teachers, as they are being directed by their leaders. Besides, teachers are paid diddly squat, and we expect them to be superheroes.
Comments
Although, I can't stand that smarmy guy Chevy is using, along with the rube "real people" in their ads.
Now that I look at my owner magazine, it's "Find New Roads". I interpret that as sort-of "try something different" (instead of the mainstream).
https://www.youtube.com/watch?v=mRqLV_SGBG0
This dealer had their 50th anniversary a few years back. Execs from Japan visited and gave them a Samurai sword as an anniversary gift.
The Caribbean my friend sold survives in Denmark.
"You aren't going to let this deal go over $500, are you?"
Yes, I am, and I'll ask you the same thing...
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But, Italy switched to the Euro along with the rest of the continent.
I'll guess around $25-50K per vehicle.
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2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4
E.G.
colored safety belts --$800
leather armrest for transmission tunnel -- $550
colored brake calipers -- $1500
parking cameras -- $3500
Average add-ons, per car = $70,000
Profit per car -- $80,000
Porsche? About $20K per car
BMW & Mercedes? About $10K per car.
Maserati -- About $6K per car
Bentley --- currently, a loss of about $20,000 per car
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
https://jalopnik.com/gm-knows-this-is-cadillac-s-last-chance-1831926384
https://theweek.com/speedreads/823475/record-7-million-americans-are-90-days-behind-car-payments
A little more information here, but still not a lot.
https://www.bankrate.com/loans/auto-loans/auto-loan-delinquencies-rise/?bsft_eid=e9e04152-ba9f-9e95-88b8-21b7712c0a86&bsft_pid=3c35f3ba-c7f3-48e5-83ea-54e1ceb7fb05&utm_campaign=newsletter_weekly&utm_source=email&utm_medium=email&bsft_clkid=5685b446-8438-47f4-b2bf-4dd2a811a75a&bsft_uid=40c8fbd7-f9f2-4cf0-9588-da1805464a0f&bsft_mid=8cc77168-d66e-44a7-ab86-4a9fbfc3c09d&bsft_pp=4&pid=email&brid=9011602
-=-=-=-=- begin quote -=-=-=-=-=
The bank says more than 50 percent of auto loans go to subprime borrowers with credit scores less than 620. Mark Hamrick, senior economic analyst at Bankrate, notes that these buyers end up paying more to finance their rides.
“Many borrowers who aren’t well qualified, meaning they have low credit scores, have been paying higher interest rates on their auto loans, making it additionally challenging for them to not only pay off the loan but capture equity in the vehicle,” says Hamrick. “There’s something about the allure of automobiles that prompts too many buyers (and borrowers) to fail to sufficiently shop around for the best loan as well as a better deal on a vehicle.”
4 years ago, the wife and I bought a 2015 Subaru Outback 3.6R. We rolled in something like $3500 of negative equity, and we added an extended warranty as well as GAP insurance.
Because we live in Colorado, the depreciation was not like a rock, but more a feather. I received a buy bid a week or two ago that showed we have close to $6000 in positive equity, were we to sell.
What has good (read: low) depreciation? I'd say most Toyotas and Hondas, pickup trucks of all brands, Subaru in the Mountain West, Pacific NW and New England. There may be others (Lexus and Acura?), but finding the right vehicle with the right loan should help minimize the possibility of being upside down.
As far as budget goes, folks want to have the newest, flashiest, most loaded version. A $22,000 Accord will be just as reliable as a $32,000 Accord, and is likely to depreciate slower.
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2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4
Stagnant wages and lack of economic mobility, rising new car prices, lack of financial education all can align for a storm. But a small storm compared to the mortgage fiasco.
The wage thing I completely agree with. Lack of financial education depends on the individual. My son, who barely was able to graduate HS, has managed to keep himself out of serious debt as he approaches his 30th birthday. Just bought his first car with payments attached to them last year, but is only spending $350/mo.
I've seen signs that the lessons learned a decade ago may not have completely sunk in; exotic mortgage products are making a comeback.
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Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!
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2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4
I think financial education in reality comes from parents. Schools don't teach it. My parents weren't spendthrifts when I was a kid, and I saw the drama when bills were due. Because of this, I live below my means in some ways so I can enjoy other things. Some may cringe at even what I spend on a sweetheart lease, but the way I see it, these are the good old days. However, some may not be aware enough to learn financial lessons from family. Schools should be doing a lot more to teach basic financial literacy, but with the test-based system now, teachers haven't the time, and not to be a conspiracy theorist, but I think the banking and finance industries approve.
I haven't seen any data that we are close to 2006, yet anyway. There are some zero down programs out there, but not the general malfeasance, nor the bubbles in some areas where local jobs don't support it (Atlanta, Vegas, inland CA, etc). Anbd if it does happen again, maybe this time the FIRE sector will have to actually pay a price. Yeah right.
Also, cashing out equity by refinancing is difficult. And, HELOC interest is no longer deductible.
We are nowhere near a financial crisis. Even so, not a big fan of rolling back regulations on the banks.
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doing the taxes this weekend. Can't wait to see what other surprises I uncover.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
'17 Chevy Volt Premiere
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
'17 Chevy Volt Premiere
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
On balance, less overall tax paid with the new tax cuts. Not itemizing is okay, but I still have the same record keeping, because the standard deduction for our state is around $3000. So, I itemize there.
I won't get into the macro-economic impact, due to our forum rules.
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Anyone want to buy a slightly used TLX? A kidney? Sadly the kids are no longer minors so I can't sell them...
I could have sworn I went in and had extra taken out last year to make sure. Guess not.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
We'll be using a CPA this year, due to the new LLC and the expenses associated with it we incurred in 2018.
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2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4