View Poll Results: Is your Corvette still financed or free and clear?
My C6 is still financed
178
31.84%
My Corvette is owned free and clear
381
68.16%
Voters: 559. You may not vote on this poll
Poll- % of vettes still financed vs clear.
03-15-2010, 06:29 AM
#121
Burning Brakes
There are so many facets of this debate. In the end, rather you agree with how the vette was purchased or not, we all got what we wanted....right?!
Monique
Monique
03-15-2010, 07:21 AM
#123
Burning Brakes
03-15-2010, 07:46 AM
#124
Le Mans Master
One of my hard and fast rules - never borrow any money you don't have to. Personally I think that once you get basic transportation it is stupid to borrow money just to get something better. Fresh out of college and looking at riding a motorcycle to work I did borrow money to buy my first car. Paid it off in 4 months. That was over 40 years ago and I've never borrowed a penny for a car since. By following this rule I've always had enough cash to buy any car I want.
Do I borrow money? Yes. I borrow to invest in the stock market so that I can buy when the market is down and don't have to sell at a low price. I borrow when a good land investment presents itself so that again I don't have to sell stock at bargain prices. But I pay off those loans as soon as possible. If I'm not bringing in more value on the investment than the interest is costing, borrowing would be stupid. So, how much is your investment in a car bringing in?
Do I borrow money? Yes. I borrow to invest in the stock market so that I can buy when the market is down and don't have to sell at a low price. I borrow when a good land investment presents itself so that again I don't have to sell stock at bargain prices. But I pay off those loans as soon as possible. If I'm not bringing in more value on the investment than the interest is costing, borrowing would be stupid. So, how much is your investment in a car bringing in?
03-15-2010, 07:57 AM
#125
Team Owner
Ask someone who is in the mortgage business and looks at applications every day. The fact they own a Corvette, BMW, Lexus etc only changes the odds a little.
I don't for second believe this thread is indicative of the real world numbers.
03-15-2010, 08:18 AM
#126
Drifting
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This is not really a personal question...
I posted it as a poll, which means anyone could respond anonymously.
I've been looking at daily economic data every day for the last 30 years pertaining to the economy, i.e.macro economic stats. So, since my framework is to view everything in quantitative metrics, it would be inconsistent if I weren't interested in Corvette ownership.
A smaller subsection, granted, but I could tell you for instance, that out of 100% of US housing, 11% are owned 100%, and 89% are financed, and with the drop in housing prices, the average net equity in that 89% amounted to close to zero, because while some people have net equity, others are upside down in their mortgages. How much assets- cars, corvettes, etc- give you an idea of the financial health of the sector.
What this poll tells me, is that C6 owners are in relatively good shape in terms of financing. It also tells me that Corvettes will generally hold their value because of this, even though you will find at the margin that desparate seller, who because of a lost job, that has to sell if they lose their job. Since price is determined by the marginal seller (not the bulk of the people who aren't buying or selling their cars, it effects all Corvette values.
So, in that sense, it is not my business, it is everyone's business.
Also, a number of people have posted what kind of discounts they have gotten from dealers, i.e. 20% off sticker, which is useful information when going in and bargaining with a dealer, especially when car sales are tight.
Don't you find that interesting?
I'd have been just as satisfied is people only answered the poll, so there is nothing personal about it. It is simply macro-statistics. Not only that, but there was an interesting debate on 0% financing vs. paying cash.
If you look at this thing defensively, you lose the fun in the dialogue, which a lot of us seem to be definitely having.
I've been looking at daily economic data every day for the last 30 years pertaining to the economy, i.e.macro economic stats. So, since my framework is to view everything in quantitative metrics, it would be inconsistent if I weren't interested in Corvette ownership.
A smaller subsection, granted, but I could tell you for instance, that out of 100% of US housing, 11% are owned 100%, and 89% are financed, and with the drop in housing prices, the average net equity in that 89% amounted to close to zero, because while some people have net equity, others are upside down in their mortgages. How much assets- cars, corvettes, etc- give you an idea of the financial health of the sector.
What this poll tells me, is that C6 owners are in relatively good shape in terms of financing. It also tells me that Corvettes will generally hold their value because of this, even though you will find at the margin that desparate seller, who because of a lost job, that has to sell if they lose their job. Since price is determined by the marginal seller (not the bulk of the people who aren't buying or selling their cars, it effects all Corvette values.
So, in that sense, it is not my business, it is everyone's business.
Also, a number of people have posted what kind of discounts they have gotten from dealers, i.e. 20% off sticker, which is useful information when going in and bargaining with a dealer, especially when car sales are tight.
Don't you find that interesting?
I'd have been just as satisfied is people only answered the poll, so there is nothing personal about it. It is simply macro-statistics. Not only that, but there was an interesting debate on 0% financing vs. paying cash.
If you look at this thing defensively, you lose the fun in the dialogue, which a lot of us seem to be definitely having.
03-15-2010, 08:43 AM
#128
Instructor
Member Since: Oct 2008
Location: OKC OK
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I'm 28, learning everything the hard way.
Be nice if some of you financial guru's out there would let us younger fools know what not to do. ;-)
I'm free and clear, but I had to bust my rear end to get there on my 2006 C6.
Be nice if some of you financial guru's out there would let us younger fools know what not to do. ;-)
I'm free and clear, but I had to bust my rear end to get there on my 2006 C6.
03-15-2010, 09:35 AM
#129
Pro
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Location: Boone Lake Tennessee
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I don't think you understand the American public very well if you really believe that. I'd bet lot's of money that more than 50% of Corvette owners don't have near enough cash in the bank to pay cash for a Corvette even if they used all of their savings. Further, I'll bet a pretty good percent have credit card debt they don't pay off every month.
Ask someone who is in the mortgage business and looks at applications every day. The fact they own a Corvette, BMW, Lexus etc only changes the odds a little.
I don't for second believe this thread is indicative of the real world numbers.
Ask someone who is in the mortgage business and looks at applications every day. The fact they own a Corvette, BMW, Lexus etc only changes the odds a little.
I don't for second believe this thread is indicative of the real world numbers.
Last edited by srpbaer; 03-15-2010 at 10:45 AM.
03-15-2010, 09:45 AM
#130
Pro
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Anyone financing a new Vette probably can't afford one.
When you get 0% financing, you give up the cash discount.
When you buy new, you get screwed on the depreciation.
Quit defending yourselves. It's a losing battle.
If you really want to learn how to maximize your money when it come to purchasing a vehicle, give me a shout.
When you get 0% financing, you give up the cash discount.
When you buy new, you get screwed on the depreciation.
Quit defending yourselves. It's a losing battle.
If you really want to learn how to maximize your money when it come to purchasing a vehicle, give me a shout.
Last edited by srpbaer; 03-15-2010 at 09:53 AM.
03-15-2010, 10:16 AM
#131
Team Owner
You just very nicely stated what I was trying to get these folks to see..I live in a very nice area with most neighbors driving the very expensive cars...That fact does not for one minute make me think they are debt free and have cash in the bank...I belong to several Vette clubs and I can assure you 75% did not pay cash...I still smell that aroma!!!!
03-15-2010, 10:28 AM
#133
Pro
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...sorry for the hi-jacking
Last edited by srpbaer; 03-15-2010 at 10:32 AM.
03-15-2010, 10:56 AM
#135
Burning Brakes
I really don't mean to offend you but...you are full of that stuff I am smelling!!!!..I am not one to state my net worth on a public forum but I am very confortable stating to you my Vette was a very minor purchase in the big picture...Actually it is the cheapest purchase I have made in 10 years...I own a boat that costs 4 times the price of this car...financed that too!!!! (paid it off early) Can't live on a lake and not have a fast boat..check out the avatar)....but according to you I could not afford it....I have already said more than I should but wil end with two observations...you mention depreciation in your post above..never concern yourself with that as a car is not an investment...and 2...I would be careful telling folks what they can afford and what they can't..you really have no idea who you may be addressing with such a silly, uninformed statement....
03-15-2010, 11:07 AM
#136
Drifting
One of my hard and fast rules - never borrow any money you don't have to. Personally I think that once you get basic transportation it is stupid to borrow money just to get something better. Fresh out of college and looking at riding a motorcycle to work I did borrow money to buy my first car. Paid it off in 4 months. That was over 40 years ago and I've never borrowed a penny for a car since. By following this rule I've always had enough cash to buy any car I want.
Do I borrow money? Yes. I borrow to invest in the stock market so that I can buy when the market is down and don't have to sell at a low price. I borrow when a good land investment presents itself so that again I don't have to sell stock at bargain prices. But I pay off those loans as soon as possible. If I'm not bringing in more value on the investment than the interest is costing, borrowing would be stupid. So, how much is your investment in a car bringing in?
Do I borrow money? Yes. I borrow to invest in the stock market so that I can buy when the market is down and don't have to sell at a low price. I borrow when a good land investment presents itself so that again I don't have to sell stock at bargain prices. But I pay off those loans as soon as possible. If I'm not bringing in more value on the investment than the interest is costing, borrowing would be stupid. So, how much is your investment in a car bringing in?
03-15-2010, 11:12 AM
#137
Team Owner
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St. Jude Donor '11,'13
"I voluntarily took 60 days off from OT"
03-15-2010, 12:08 PM
#139
Team Owner
I believe in a balance of properties. I've done a fair amount of work trying to figure out how much I'll need to retire comfortably and how to get there. After I take care of that I spend money on cars and motorcycles. The rest I just **** away.
