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A recession and the C8

Old 11-21-2018, 11:49 AM
  #21  
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I worry more about a meteor hitting Disneyland.
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Old 11-21-2018, 01:49 PM
  #22  
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My income is highly dependent on the economy. So it effects me for sure. Is it going to alter the release of the C8? No. Will it effect overall sales? Definitely yes.

I do acknowledge that it's best to buy during the recession and sell during the boom years, and for that reason I have built up a hunk of cash for a real estate purchase during the next recession, which I feel is coming rather soon.

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Old 11-21-2018, 02:30 PM
  #23  
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ONly peasants worry about recessions...lol

(kidding)

im more worried about getting hit by lightning...or getting murdered by illegal immigrant caravans

the glass is either half full or half empty.,,take your pick...

most corvette owners pay cash anyway..unless interest rates are at giveaway levels...

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Old 11-21-2018, 04:43 PM
  #24  
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Originally Posted by Bill Dearborn View Post
What starts a recession is somebody saying I think there is going to be a down turn so I am going to stop spending money on anything but essentials. Pretty soon other people do the same. Then layoffs come as production decreases and everybody says I told you so. Then more people cut back because their jobs may be on the line as well. Herd mentality and Down we go.

Bill

Ah yes, reminiscent of "the flailings of the lemmings on Wall Street".
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Old 11-21-2018, 04:46 PM
  #25  
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Originally Posted by Suns_PSD View Post
My income is highly dependent on the economy. So it effects me for sure. Is it going to alter the release of the C8? No. Will it effect overall sales? Definitely yes.

I do acknowledge that it's best to buy during the recession and sell during the boom years, and for that reason I have built up a hunk of cash for a real estate purchase during the next recession, which I feel is coming rather soon.
Much better use of the 'greenbacks' above...
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Old 11-21-2018, 04:47 PM
  #26  
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Originally Posted by JerriVette View Post
ONly peasants worry about recessions...lol

(kidding)

im more worried about getting hit by lightning...or getting murdered by illegal immigrant caravans

the glass is either half full or half empty.,,take your pick...

most corvette owners pay cash anyway..unless interest rates are at giveaway levels...

Are you sure about that?

Why fool with the hassle of monthly payments if you can just pay cash for your hot new C7 Corvette?

Apparently that’s the philosophy followed by some 40.3 percent of recent Corvette buyers who shelled out cold hard cash for their cars.

That’s according to research done by the credit site Experian. The report doesn’t say what period this covers, but they did say there were 32,000 new Corvette registrations during that time. Only 56.9 percent of buyers had to finance their purchase.

By comparison, 79.3 percent of Camaro buyers are paying for their dream ride by the month, with another 7.3 percent resorting to leases. That means only 13.4 percent of Camaro buyers paid cash.............
https://www.corvetteblogger.com/2016...yers-pay-cash/

Last edited by Oneslackr; 11-21-2018 at 04:52 PM.
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Old 11-21-2018, 04:53 PM
  #27  
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Originally Posted by Oneslackr View Post
40% paid in cash ?
That is actually a very high number in the auto industry...(100k and under)
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Old 11-21-2018, 05:07 PM
  #28  
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Originally Posted by pietro c7 View Post


40% paid in cash ?
That is actually a very high number in the auto industry...(100k and under)
Yeah, that's a high percentage but it certainly isn't most.
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Old 11-21-2018, 05:07 PM
  #29  
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Originally Posted by pietro c7 View Post


40% paid in cash ?
That is actually a very high number in the auto industry...(100k and under)
It's different though. It's much more acceptable to finance your DD. Sure you don't need a Corvette but if you are say a single guy with some money and not a lot of other responsibilities, financing your dream car is acceptable, if not exactly wise.

But Corvettes occupy a different spot for most. My '18 GMC truck has 26K miles. My Vette I paid cash for and it's an '08 with 23K miles. It's a play car. No one should be financing a play car.
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Old 11-21-2018, 07:23 PM
  #30  
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Whew!
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Old 11-22-2018, 12:43 AM
  #31  
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Originally Posted by pietro c7 View Post


40% paid in cash ?
That is actually a very high number in the auto industry...(100k and under)
Huh I could see it being 40% which explains why the Corvette is a retirees sports car,
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Old 11-22-2018, 01:02 AM
  #32  
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The 10% tariffs went nowhere, China wiped those out by instantly devaluing the yuan 10%. Zero net effect on prices. The federal reserve is the problem, needless rate hikes driving up the cost of mortgages and auto financing/leases.
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Old 11-22-2018, 09:31 AM
  #33  
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The 10% tariffs went nowhere, China wiped those out by instantly devaluing the yuan 10%. Zero net effect on prices. The federal reserve is the problem, needless rate hikes driving up the cost of mortgages and auto financing/leases.[/QUOTE]
——————————————————————————————————— ———

Bottom line: The Fed’s rate hike has nothing to do with employment, growth, productivity, the state of the economy or inflation. It’s all about the banks. Stock buybacks– which were illegal before the Reagan administration are a deceptive form of financial circlejerk that distorts prices, create bubbles and lead to crisis. The reason the Fed ignores these issues because it sees profitmaking as a higher priority than ensuring the safety of the system. Go figure? I was a Reagan fan.


Forbes Article on stock buy backs.

The Economist has called them “an addiction to corporate cocaine.” Reuters has called them “self-cannibalization.” The Financial Times has called them “an overwhelming conflict of interest.” In an article that won the HBR McKinsey Award for the best article of the year, Harvard Business Review has called them “stock price manipulation.” These influential journals make a powerful case that wholesale stock buybacks are a bad idea—bad economically, bad financially, bad socially, bad legally and bad morally.

Great read: https://www.forbes.com/sites/stevede.../#555bf7353346

Last edited by fasttoys; 11-22-2018 at 09:58 AM.
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Old 11-22-2018, 10:03 AM
  #34  
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Originally Posted by Suns_PSD View Post
My Vette I paid cash for and it's an '08 with 23K miles. It's a play car. No one should be financing a play car.
I guess you are of the closed minded belief that maximizing cash flow and returns should be discarded to buy a play car (or any other toy)? I bought my GS with 2.49% financing, while that same money has, even with the market being flat for 2018, made me 6.2% on an annualized basis for the last 16 months - I will take a free 3.5% on $50,000 all day long. If the market starts really tanking, I can always pull out the cash to pay of the GS - but we aren't there yet and may not ever be as current CD rates are at 3%, which, if I shifted the money, would still net me 0.5% over my financing costs.
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Old 11-22-2018, 10:40 AM
  #35  
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Short answer..yes. Recessions impact consumer confidence (especially working consumers). Watching retirement plans take a hit may cause some to forego large purchases until things settle down. Job security is another consideration w/ layoffs possible as companies try to remain profitable. Other consumers may not feel either impact. History tells us investments will recover over time. We have a large retired consumer and most have done well to "feather the nests" w/ monies in preservation investments. Other working types may not have any fear of layoffs based upon who they work for, so plans to buy a C8 or other high ticket item won't be impacted by a recession..

IMO, Buying demographic will tell how many sales will be lost due to a recession If 50% of Corvette buys are retired, 10% work as civil servants those percentages will likely be less affected than the remainder that work in the private sector where job security or wealth building is a consideration.
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Old 11-22-2018, 11:19 AM
  #36  
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So I should have spent $60k cash that I could have borrowed for 2.5% while I could have invested that $60k and earned a double digit return?
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Old 11-22-2018, 04:05 PM
  #37  
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Even after the crash of 29 Cadillac still made the 16 cylinder for over 11 years after.

Not that they sold that many either (less than 5k).
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Old 11-22-2018, 04:57 PM
  #38  
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Originally Posted by 4VFTW View Post
So I should have spent $60k cash that I could have borrowed for 2.5% while I could have invested that $60k and earned a double digit return?
If everyone were able to live in financial hindsight, then no one would need a crystal ball.
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Old 11-22-2018, 10:26 PM
  #39  
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Markets crash guys.

My style is to lean towards cautious, but others do it differently.
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Old 11-22-2018, 10:57 PM
  #40  
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Originally Posted by LIStingray View Post
I guess you are of the closed minded belief that maximizing cash flow and returns should be discarded to buy a play car (or any other toy)? I bought my GS with 2.49% financing, while that same money has, even with the market being flat for 2018, made me 6.2% on an annualized basis for the last 16 months - I will take a free 3.5% on $50,000 all day long. If the market starts really tanking, I can always pull out the cash to pay of the GS - but we aren't there yet and may not ever be as current CD rates are at 3%, which, if I shifted the money, would still net me 0.5% over my financing costs.
Originally Posted by Suns_PSD View Post
Markets crash guys.

My style is to lean towards cautious, but others do it differently.
Yep, markets crash. Some finance experts are expecting more significant retractions late 19 - 20.

Last edited by Vernon; 11-22-2018 at 10:58 PM.
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