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A recession and the C8

Old 11-22-2018, 11:11 PM
  #41  
Randy Miller
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A recession would certainly change the number of sales of the corvette, although how much and how soon is impossible to say.

As far as whether it would postpone the introduction of the C8 I don't think it would. I think they are far enough along in the process that it wouldn't make sense to stop at this point.
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Old 11-22-2018, 11:59 PM
  #42  
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Your health and your loved ones health. That is something worth worrying about.

forty percent of all porsche 911 s were gt cars...gt3 or gt2 s this past year...

thats the most sold porsche 911 model.

so many people have money...porsches most expensive 911 model is now the highest percentage 911s are sold...

i think the c8 costing five grand more than todays car to start and run upward of 150 grand for the top of the line model...

are porsche vuyers worried avout the possible recession and their cars are quite a bit more expensive.

just to play devils advocate and play along with the OP premise.,,if the recession you are hinting at hits ....possibly c8 sales will go up...as the even more extravagant porsche buyers maybe they will buy c8 s instead of their ever increasing prices in the 992,

30k units a year for the c8 will get sold easily.

recession or no recession...

after the fifth year all bets are off and discounts will be part of the business plan.
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Old 11-23-2018, 09:40 AM
  #43  
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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.
Just to point out the obvious:

Paying for your auto cash saves you a guaranteed 2.49% (admittedly a very good rate) on your money.

Putting that money in the market could result in anywhere from -50% to + 50% change in value of your money.

if you financed a 100k C7 on 1-1-18 and matched the market with your investments, you have lost $2.5k in interest payments on your car this year and lost money in the market as well.

You posted your above query as if it's a guarantee that you will make money in the market, but it's not. They're is also the issue of not being liquid when you have a big loan on a depreciating asset.

Full respect for your financial decisions, but since my income is highly volatile I go a different route.

I fight these battles with myself monthly when I see my mortgage statement as I could write a check and pay my home loan off today and would save a guaranteed $4k annually, but would be left with essentially no investment income. What to do, what to do...
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Old 11-23-2018, 03:36 PM
  #44  
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Originally Posted by Suns_PSD View Post
Just to point out the obvious:

Paying for your auto cash saves you a guaranteed 2.49% (admittedly a very good rate) on your money.

Putting that money in the market could result in anywhere from -50% to + 50% change in value of your money.

if you financed a 100k C7 on 1-1-18 and matched the market with your investments, you have lost $2.5k in interest payments on your car this year and lost money in the market as well.

You posted your above query as if it's a guarantee that you will make money in the market, but it's not. They're is also the issue of not being liquid when you have a big loan on a depreciating asset.

Full respect for your financial decisions, but since my income is highly volatile I go a different route.

I fight these battles with myself monthly when I see my mortgage statement as I could write a check and pay my home loan off today and would save a guaranteed $4k annually, but would be left with essentially no investment income. What to do, what to do...
Good stuff, ^^^^ Sun.

.Folks have the tendency to look at the recent financial past and base their future on it as if it's guaranteed going forward. Doesn't work that way.

.Anytime you're indebted to meeting financial repayment on loans, that amount is pure risk. The question is only will you be able to continue the installment payments on time.

.If push comes to shove, how likely will someone continue car payments, when they can't make their housing payments? When the walls close in, is the loan upside down on car?
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Old 11-23-2018, 10:49 PM
  #45  
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There will always be a small percentage of the population that will be able to afford a toy like the C8 no matter what the economy is doing. For the rest of us mortals who have to stretch things and often finance expensive things like a new Corvette the state of the economy does matter.

I worry about the pending debt crisis that is looming and few want to talk about. It is easy to forget that we are in a bubble that has been built up by cheap money ( low % rates ) and quantitative easing. So many think they are doing great because the stock market and real state has been propped up with all this cheap money floating around but how quickly we can forget how the party can abruptly end. I tell all my friends to pay attention to what happens in countries like Greece. After Greece got in with the EU they were flush with cheap money so they were all buying things like the Porsche Cayenne. Only problem is when the money dried up it was really hard to live in a Porsche
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Old 11-24-2018, 01:45 AM
  #46  
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Originally Posted by 95tealconvert View Post
There will always be a small percentage of the population that will be able to afford a toy like the C8 no matter what the economy is doing. For the rest of us mortals who have to stretch things and often finance expensive things like a new Corvette the state of the economy does matter.

I worry about the pending debt crisis that is looming and few want to talk about. It is easy to forget that we are in a bubble that has been built up by cheap money ( low % rates ) and quantitative easing. So many think they are doing great because the stock market and real state has been propped up with all this cheap money floating around but how quickly we can forget how the party can abruptly end. I tell all my friends to pay attention to what happens in countries like Greece. After Greece got in with the EU they were flush with cheap money so they were all buying things like the Porsche Cayenne. Only problem is when the money dried up it was really hard to live in a Porsche
My new C7 is a 100% business tax write-off. I'm a sole proprietor of my own PC agency. We started the tax expensing in 2017. As a matter of fact, we needed the business expense of the new C7. Lol! Business is so good that we were able to spend big on the new Corvette. Always growing the business! Accordingly we're very bullish on the Economy going forward!!
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Old 11-24-2018, 10:51 AM
  #47  
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Originally Posted by Skid Row Joe View Post
My new C7 is a 100% business tax write-off. I'm a sole proprietor of my own PC agency. We started the tax expensing in 2017. As a matter of fact, we needed the business expense of the new C7. Lol! Business is so good that we were able to spend big on the new Corvette. Always growing the business! Accordingly we're very bullish on the Economy going forward!!
Every second counts for fast on site customer service!

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Old 11-24-2018, 11:56 PM
  #48  
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Wowzers...

Never ceases to blow my mind how many people have apparent personal big $$ and yet have no clue how the economy works...
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Old 11-25-2018, 12:20 AM
  #49  
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Originally Posted by mammoth713 View Post
Wowzers...

Never ceases to blow my mind how many people have apparent personal big $$ and yet have no clue how the economy works...
We’re suposed to die broke right?
Did I miss something ?
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Old 11-25-2018, 01:54 AM
  #50  
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Originally Posted by Zaro Tundov View Post
Every second counts for fast on site customer service!?
Huh?

​​​​​​​.PC, is a "professional corporation," in my firm's case.

Last edited by Skid Row Joe; 11-25-2018 at 11:30 PM.
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Old 11-25-2018, 10:23 PM
  #51  
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Originally Posted by 1SG_Ret View Post
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.
Numbers I've seen is that the average person aged 65 or thereabouts is entering retirement with around $74K.
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Old 11-25-2018, 11:06 PM
  #52  
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Originally Posted by pdiddy972 View Post


Numbers I've seen is that the average person aged 65 or thereabouts is entering retirement with around $74K.
Well, if true, that's a bit distressing.

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Old 11-25-2018, 11:28 PM
  #53  
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Originally Posted by 1SG_Ret View Post
Well, if true, that's a bit distressing.
It is depressing to consider.
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Old 11-25-2018, 11:41 PM
  #54  
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Originally Posted by pdiddy972 View Post


Numbers I've seen is that the average person aged 65 or thereabouts is entering retirement with around $74K.
Put a couple of hashtags in there ,and that could be one of those late night president Trump quotes....
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Old 11-25-2018, 11:57 PM
  #55  
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Which leads to Suze Orman statement that you need a minimum of a million to buy a new Corvette..
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Old 11-26-2018, 01:19 AM
  #56  
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We all are in different situations when it comes to buying a toy like a Corvette. My guess is most of us who are on this forum and talking about buying a C8 are in much better shape financially than most in this country. I read an article about a year ago that stated that over 50% of Americans can not even come up with $ 500.00 cash for an emergency. I must admit that when I first read the article I thought that was a typo but it was not. Still hard for me to absorb that fact and imagine how much worse it gets as the amount needed for an emergency goes up.

https://www.cbsnews.com/news/most-am...gency-expense/

Last edited by 95tealconvert; 11-26-2018 at 11:59 PM.
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Old 11-26-2018, 04:15 AM
  #57  
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Talking about recessions, looks like GM is not doing so well.....

https://www.foxbusiness.com/markets/...rations-report
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Old 11-26-2018, 07:14 AM
  #58  
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Originally Posted by lostsoul View Post
Which leads to Suze Orman statement that you need a minimum of a million to buy a new Corvette..
Same advice Dave Ramsey gives. ^^^^
Unless your net worth is $1 Mil or greater, you should be buying used cars, not new cars. Of course paying cash new or used. Great advice I actually agree with and practice......

.For the guy hawking real estate, prices are probably astronomical everywhere by now. Interest rates are rising. Best wait for a real recession to advise anybody to buy. There's no guarantee that buying real estate automatically means it'll double and buy a new GS. That's just pie in the sky.


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Old 11-26-2018, 08:31 AM
  #59  
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Just read that GM is closing the plant in Canada
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Old 11-26-2018, 10:30 AM
  #60  
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Originally Posted by Skid Row Joe View Post
Same advice Dave Ramsey gives. ^^^^
Unless your net worth is $1 Mil or greater, you should be buying used cars, not new cars. Of course paying cash new or used. Great advice I actually agree with and practice......

.For the guy hawking real estate, prices are probably astronomical everywhere by now. Interest rates are rising. Best wait for a real recession to advise anybody to buy. There's no guarantee that buying real estate automatically means it'll double and buy a new GS. That's just pie in the sky.
​​​​​​​.
My parents (and most others of my generation) lived the Dave Ramsey ethic as the norm. Thankfully they passed that to me and I lived it too.

Coming from a time where I remember banks paying 4.5% on a passbook and throwing in a small appliance to get new customers and you could tell how well a person was doing financially by the car they drove.. A new car in our neighborhood was an "event" and usually brought the neighbors over to proud owners home to"ooh and ahh" over it. Generally this happened about every 6-7 years per household in our Chicago neighborhood.

Most everyone lived within their means and only carried debt on a home loan (which eventually saw full payment and a well attended mortgage burning party) . I've read that the average American family stays in a home only 5-7 years before moving (usually into something bigger and more expensive). I watch House Hunters on HGTV and wonder how some 20 year old couples are looking a $500k homes and finding fault with nearly everything they see. (likely every dime they make is going to go to the mortgage payment).

Not sure what happened to the "save up and then buy when you could actually afford it" ethic. I see plenty of my friend's children in this situation, where they cannot afford a new hot water heater (they run to dad and mom for those emergencies), but have cable w/ all the premium channels, a family cell phone plan w/ the latest and greatest Iphone for everyone, a lease or two parked in their driveway, restaurant family meals each week (not talking MacDonalds or Taco Bell here, more like Outback and Carraba's) , a family movie night w/ popcorn, drinks and pizza afterwards and of course a well earned 2 week luxury family vacation.

Appears (at least to me) that much has to do with instant gratification rather than wealth building. I'm guessing that maybe 50% (probably less) of the "boomer" generation will have any measurable wealth to pass on.







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