A recession and the C8
11-21-2018, 10:49 AM
#21
Le Mans Master
Member Since: Apr 2013
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2020 C8 of the Year Finalist - Unmodified
I worry more about a meteor hitting Disneyland.
11-21-2018, 12:49 PM
#22
Le Mans Master
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.
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.
Last edited by Suns_PSD; 11-21-2018 at 12:50 PM.
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11-21-2018, 01:30 PM
#23
Race Director
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...
(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...
Last edited by JerriVette; 11-21-2018 at 01:32 PM.
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11-21-2018, 03:43 PM
#24
Drifting
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
Bill
Ah yes, reminiscent of "the flailings of the lemmings on Wall Street".
11-21-2018, 03:46 PM
#25
Drifting
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.
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.
11-21-2018, 03:47 PM
#26
Drifting
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...
(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...
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.............
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.............
Last edited by Oneslackr; 11-21-2018 at 03:52 PM.
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JerriVette (11-22-2018)
11-21-2018, 04:07 PM
#29
Le Mans Master
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.
11-21-2018, 06:23 PM
#30
Whew!
11-22-2018, 12:02 AM
#32
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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fasttoys (11-22-2018)
11-22-2018, 08:31 AM
#33
Melting Slicks
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.
——————————————————————————————————— ———
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 08:58 AM.
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11-22-2018, 09:03 AM
#34
Melting Slicks
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.
11-22-2018, 09:40 AM
#35
Melting Slicks
Member Since: Jul 2014
Location: Bonita Springs Florida
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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.
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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11-22-2018, 03:57 PM
#38
11-22-2018, 09:26 PM
#39
Le Mans Master
Markets crash guys.
My style is to lean towards cautious, but others do it differently.
My style is to lean towards cautious, but others do it differently.
11-22-2018, 09:57 PM
#40
Drifting
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.
Last edited by Vernon; 11-22-2018 at 09:58 PM.