Financing
Melting Slicks
Joined: Jul 2004
Posts: 2,574
Likes: 615
From: Springfield TN
Melting Slicks
Joined: Aug 2004
Posts: 2,149
Likes: 1,349
From: Big D Dallas TEXAS
Melting Slicks
Joined: Aug 2012
Posts: 3,159
Likes: 175
Racer
Joined: Nov 2005
Posts: 405
Likes: 2
From: STL
I don't understand how this question relates to your previous statement "GM only produces the vehicle, nothing more."
Are you under the impression that a manufacturer "helps" customers buy their cars? It's all marketing. Special rates (GM uses Ally), incentives, rebates, salesperson spiffs, etc are not there to help the customer buy (afford?) their cars. They exist to convince the customer to buy their car instead of a different brand (or instead of taking a vacation, having children, buying video games, drinking, smoking, strip clubs, bigger house, or anything else a person can spend money on).
As to what else besides producing a vehicle does a manufacturer do......let's see (major summary):
Market research - they must first find out what the market will support, what the people want to buy. They want/need to know why they want to buy it, what purpose it will serve, how many they should make and it what colors, with what engines, etc. This is really an infinite and ever dynamic activity. Every day the world changes, people change, and if you want to make and sell a product, you want to know what's going to happen.
Product adjustment - they must of course make the product, price the product, change the product, package it, etc.
Distribution - they must get the right product to the right place at the right time.
Promotion - advertisements, where and how, car shows, etc. they must incentivize sales people (in addition to potential dealer incentives), incentivize customers, etc.
Retailing - the manufacturer must sell the product. the car industry currently uses franchises to do this for the most part, but the manufacturer determines where to put dealerships (location, location, location - this is a lot of work and a big decision made by the factory, not your local businessman), they determine who can buy and run the stores, what the stores look like, etc. The dealer principle is in charge of the daily activities, nothing more, really....
Post Transaction Activites - surveys, warranty and goodwill, owner groups, etc
Strategic Planning - yep, like I said, they need to know the future.....what's next?
This is the shortest and least descriptive I could make it. But yes, the manufacturer does a LOT more than just "produce the car, nothing more."
Are you under the impression that a manufacturer "helps" customers buy their cars? It's all marketing. Special rates (GM uses Ally), incentives, rebates, salesperson spiffs, etc are not there to help the customer buy (afford?) their cars. They exist to convince the customer to buy their car instead of a different brand (or instead of taking a vacation, having children, buying video games, drinking, smoking, strip clubs, bigger house, or anything else a person can spend money on).
As to what else besides producing a vehicle does a manufacturer do......let's see (major summary):
Market research - they must first find out what the market will support, what the people want to buy. They want/need to know why they want to buy it, what purpose it will serve, how many they should make and it what colors, with what engines, etc. This is really an infinite and ever dynamic activity. Every day the world changes, people change, and if you want to make and sell a product, you want to know what's going to happen.
Product adjustment - they must of course make the product, price the product, change the product, package it, etc.
Distribution - they must get the right product to the right place at the right time.
Promotion - advertisements, where and how, car shows, etc. they must incentivize sales people (in addition to potential dealer incentives), incentivize customers, etc.
Retailing - the manufacturer must sell the product. the car industry currently uses franchises to do this for the most part, but the manufacturer determines where to put dealerships (location, location, location - this is a lot of work and a big decision made by the factory, not your local businessman), they determine who can buy and run the stores, what the stores look like, etc. The dealer principle is in charge of the daily activities, nothing more, really....
Post Transaction Activites - surveys, warranty and goodwill, owner groups, etc
Strategic Planning - yep, like I said, they need to know the future.....what's next?
This is the shortest and least descriptive I could make it. But yes, the manufacturer does a LOT more than just "produce the car, nothing more."
In that regard all they are going to do is make them.
Corvette Stories
The Best of Corvette for Corvette Enthusiasts
Top 10 Most Expensive Corvettes Ever Sold on Bring A Trailer
Brett Foote
10 Things Every Corvette Owner Needs (2026 Edition)
Michael S. Palmer
8 Most "Only Corvette Owners Understand" Quirks and Problems
Pouria Savadkouei
10 Reasons the C6 Z06 is Still A Performance Benchmark After 20 Years
Joe Kucinski
How Much Horsepower Every Corvette Engine "LOST" in 1972
Joe Kucinski
Top 10 DOs and DON'Ts for Protecting Your Convertible Top!
Michael S. Palmer
Top 10 Most Explosive Corvettes Ever Made: Power-to-Weight Ratio Ranked!
Joe Kucinski
150 hp to 1,250 hp: Every Corvette Generation Compared by the Specs That Matter
Joe Kucinski
8 Coolest Corvette Pace Cars (and Replicas) of All Time
Verdad Gallardo
Racer
Joined: Jul 2004
Posts: 454
Likes: 40
From: Fremont CA
I was just reading in a newspaper recently that stock market for the last 50+ years have returned an average of over 20% per year (don't quote me on that, but you get the idea).
The trick, of course is to choose the right stocks, which, more often than not, feels like luck.
If you went in 1-2 years ago on stocks like TSLA (700+% from 2 years ago), SCTY (500+% since IPO 18 months ago), AAL (50%+ since relisting 8 months ago, or even better 700%+ if you got in when it was still AAMRQ), then you'd have made out like a bandit. Frankly, when I saw his 15% figure, I thought to myself I'd have been disappointed if that's all I had gotten. My only regret is that I didn't put more money in earlier. But hey, hindsight is 20/20 as they say
For the record I'm just an average Joe, and maybe I just got way more lucky than I should on stocks, but my humble advice on it is, if you decide to do it, keep it healthy: Never invest more than you can afford to lose! That, and stay away from penny stocks and those newsletters claiming to tell you what the "next big stock" is
Geoff
The trick, of course is to choose the right stocks, which, more often than not, feels like luck.
If you went in 1-2 years ago on stocks like TSLA (700+% from 2 years ago), SCTY (500+% since IPO 18 months ago), AAL (50%+ since relisting 8 months ago, or even better 700%+ if you got in when it was still AAMRQ), then you'd have made out like a bandit. Frankly, when I saw his 15% figure, I thought to myself I'd have been disappointed if that's all I had gotten. My only regret is that I didn't put more money in earlier. But hey, hindsight is 20/20 as they say
For the record I'm just an average Joe, and maybe I just got way more lucky than I should on stocks, but my humble advice on it is, if you decide to do it, keep it healthy: Never invest more than you can afford to lose! That, and stay away from penny stocks and those newsletters claiming to tell you what the "next big stock" is
Geoff
Thread Starter
Advanced
Joined: Mar 2009
Posts: 57
Likes: 0
While I did use GMAC in the past I wasn't refferring to GM directly in the question. I guess I should have been clearer. Many manufactures advertise special rates on their cars, Dodge, Ford, etc. While GE capital or another company may actually be the lender. With that said I was asking if Ally had any good rates on the 15's.
Drifting
Joined: Sep 2009
Posts: 1,365
Likes: 12
From: Atlanta GA
I was just reading in a newspaper recently that stock market for the last 50+ years have returned an average of over 20% per year (don't quote me on that, but you get the idea).
The trick, of course is to choose the right stocks, which, more often than not, feels like luck.
If you went in 1-2 years ago on stocks like TSLA (700+% from 2 years ago), SCTY (500+% since IPO 18 months ago), AAL (50%+ since relisting 8 months ago, or even better 700%+ if you got in when it was still AAMRQ), then you'd have made out like a bandit. Frankly, when I saw his 15% figure, I thought to myself I'd have been disappointed if that's all I had gotten. My only regret is that I didn't put more money in earlier. But hey, hindsight is 20/20 as they say
For the record I'm just an average Joe, and maybe I just got way more lucky than I should on stocks, but my humble advice on it is, if you decide to do it, keep it healthy: Never invest more than you can afford to lose! That, and stay away from penny stocks and those newsletters claiming to tell you what the "next big stock" is
Geoff
The trick, of course is to choose the right stocks, which, more often than not, feels like luck.
If you went in 1-2 years ago on stocks like TSLA (700+% from 2 years ago), SCTY (500+% since IPO 18 months ago), AAL (50%+ since relisting 8 months ago, or even better 700%+ if you got in when it was still AAMRQ), then you'd have made out like a bandit. Frankly, when I saw his 15% figure, I thought to myself I'd have been disappointed if that's all I had gotten. My only regret is that I didn't put more money in earlier. But hey, hindsight is 20/20 as they say
For the record I'm just an average Joe, and maybe I just got way more lucky than I should on stocks, but my humble advice on it is, if you decide to do it, keep it healthy: Never invest more than you can afford to lose! That, and stay away from penny stocks and those newsletters claiming to tell you what the "next big stock" is
Geoff
Well put and I understand this, I just never really wanted to risk it I guess. Basically the OP was talking about financing and banking. I kind of threw out investment banking numbers versus long term loans. Sure I know the stock market can work miracles but you have to be willing to lose it, far different than financing.
Race Director
Joined: Jul 2007
Posts: 10,961
Likes: 2,643
From: Texas Hill Country
Incentives and rates are always on the table BEFORE you ink up.....therefore they are incentives to buy, not help with the purchase.
With that said, an auto manufacturer never "just makes them."
Safety Car
Joined: Feb 2011
Posts: 4,205
Likes: 21
From: Arlington VA
Then again. I think alot of people just like bragging to strangers on the internet that they paid for an expensive in car in cash. Unfortunately for those individuals, there is nothing impressive about that strategy for people like yourself and I. Smart money would say try and get loan in between the current financing rate of 2-3%.. and keep your cash in the market while its still hot. If a selloff happens, cash out.. and pay off your car loan in full. You could do all of that, at anytime in the future.. and in just a few days. Definitely not a risky endeavor.
Racer
Joined: Dec 2010
Posts: 323
Likes: 4
From: Cary NC
Because at that scale the risk is obvious
It's no different en equation at the car purchase scale but it may be harder to detect.
To each their own, but I'm a cash for toys type, and think that being debt free provides a mental freedom that's of immeasurable value.
Drifting
Joined: Sep 2009
Posts: 1,365
Likes: 12
From: Atlanta GA
This equation doesn't value risk. Why not max out your mortgage and borrow everything you can and stick it in the market then?
Because at that scale the risk is obvious
It's no different en equation at the car purchase scale but it may be harder to detect.
To each their own, but I'm a cash for toys type, and think that being debt free provides a mental freedom that's of immeasurable value.
Because at that scale the risk is obvious
It's no different en equation at the car purchase scale but it may be harder to detect.
To each their own, but I'm a cash for toys type, and think that being debt free provides a mental freedom that's of immeasurable value.
You could take your life savings and double it in 30 seconds or lose it all on red or black too. But nobody was talking about Vegas or any other high risk move. Just simple banking.
Plain and simple you can not get the return on any type of savings that is higher than a loan %.
Drifting
Joined: Sep 2009
Posts: 1,365
Likes: 12
From: Atlanta GA
Moderator
Joined: Jul 1999
Posts: 34,245
Likes: 104
From: Northern Virginia
Cruise-In I Veteran