I traded my wife's boob job for this.
Posted on 08/30/2006 10:58:26 PM PDT by BurbankKarl
Beginning tomorrow, the Chrysler Group will begin offering 0% financing for up to 72 months until Sept. 30. Customers can also choose various cash-rebate offers instead of the financing. Chrysler offered its Employee Pricing Plus program until today,which included 0% financing for just 36 months or cash rebates for certain models.
Among other domestic auto makers, on top of the incentives programs it was already offering, GM on Tuesday began offering $500 to $1,500 cash back on many 2006 and 2007 models. GM was already offering a variety of incentives, including 0% financing for 36 months and $1,000 bonus cash on pickup-truck sales in Texas, California and Florida. Those offers end Sept. 5.
For Ford's Labor Day program, the Ford, Lincoln and Mercury brands are offering 0% financing for up to 72 months for 2006 models. The program, which ends Sept. 5, is also extended to customers with "good but not great credit," Ford says. Previously, Ford focused on regional incentives for 2006 models. The company has also lowered sticker prices for 2007 models to bring them closer in line with transaction prices, a similar strategy to one GM began pursuing in January.
(Excerpt) Read more at online.wsj.com ...
Why stop at zero?
JUST GIVE ME THE DAMN VEHICLE FOR FREE!
3 Toyota models at Zero Percent
Nissan offering no payments for 130 days
Plus one year of free fuel.
This isn't good. Eventually consumers are going to expect 0% financing as a matter of course from Ford and GM, and then there goes the only consistently profitable divisions - the finance arms.
I know Ford is doing it to blow out their 91 days of inventory, and Chrysler's going to match them to also get rid of excess inventory, but still...
GM sold their finance arm!
I'm aware - but Ford hasn't sold theirs, and GM's is still loosely associated with them (GMAC still finances cars).
Now, you pay a fortune for auto workers medical plans, boob-jobs and sex changes, all for a piece of plastic with a steering wheel and 4 tires.
Actually, they cost a lot more than that to make, in terms of materials alone.
Now, as to their actual worth... it's no secret that many domestic vehicles are worth more as parts then as actual cars, even as salvage.
You'd be suprized how little the material cost is for a 4 cyl. plain Jane puddle jumper. It isn't much over $1200. There is only about $25 worth of metal on them after you strip all the foam and plastic off and take it to the recycler.
Local Dodge dealer sent me a flyer. $139 per month for a 27 month lease for a loaded 4X4 Durango SUV. Not bad. But wait....it costs $6,100 down to get the $139 monthly payment. So 3,753 + 6,100 = $9,853. There nuts.
Even recycler's are having a harder time making money on junked cars, unless they strip and sort all the metals.
The heavest peice of steel ona little car today is the crankshaft, then the front drive axles. Blocks are alloy, transmission housings, rims are alloy.
Once you strip all the glass and plastic off the of the body, remove the engine, (power unit) steel struts, springs and control arms, 2 guys can easily pick up a car body. There just isn't much to them these days.
Except that the foam and plastic takes a lot of oil to make, the car takes a lot of energy to make, and the aluminum, copper, platinum, etc., aren't cheap.
If you're not stupid, and you part the car out and strip all the saleable metals out of it, you can get $9K for a Geo Metro with a blown engine. My buddy just did that.
Actually, steel is relatively cheap. Copper and aluminum are sky high now. I just took in a winding from a Jaguar alternator I just junked, and I got $50 for that copper alone.
Buy a used one in a year or two. Or just buy a new Pontiac sunfire for $12000. or less. (or a year old one for much less)
They don't hold their value very long. Unless you buy loan protection, you'd loose money if you wrecked it in a years time.
Didn't they already sell off their financing arms? Well they need cash flow so might as well do it for 0% and let people send them $500 checks every month than not.
They must be well marked up to cover the financing cost - which I assume must be about $5000 a car over a regular 48 month financing. It's the 72 months part that's scary. But it should also mean that they'd be willing to slash $5k off the price of the car for those who want to pay cash.
Also since they don't make many of their own parts, there is little to no revenue on repairs after warranty work. No ancillary income from the cars? Why? Maybe it was a bad idea to outsource so many of their parts.
I traded my wife's boob job for this.
No, actually, they've slashed their prices rather than marking them up, so they're not hiding their financing cost that way.
Ford still has their credit arm, GM sold theirs, but still uses it to finance cars.
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