Posted on 01/10/2003 9:58:07 AM PST by MeneMeneTekelUpharsin
I've noticed that a lot of used vehicles are for sale everywhere. A LOT of nicer later-model vehicles are for sale and they're not moving very fast. SUVs sitting there week after week are NOT selling. Cars are NOT selling. One used car lot near here put out some used Mercedes Benz cars for around $4000 apiece and then moved them off of the lot and now has put them back on the lot (hoping someone would think they sold, I guess). What's the situation elsewhere?
That is the perspective I've been getting. Asked a fellow about a used vehicle he had put up for sale and he called me SEVERAL times before I could disinterest him. And, it's going to get more so shortly...no doubt about it.
I don't know this, but I would suspect that they may be able to write their leases off through their businesses. Who am I to argue with an actual millionaire though (I still stand by my statement that leasing is a bad idea, though some people can afford bad ideas better than others ;-).
The dealers are subject to the programs that the factory (and in some cases the banks) make available to customers. When the customer asks for the 'advertised special', is the dealer supposed to tell him "No, it's not good for my long term business prospects"? No, he can't do that. He services the customer right now and writes the deal.
"On the face of it, this would appear to be the case."
Because of the short term leasing deals, yes, there is a glut of used cars. Again, not the fault of the dealer. Are you also aware that many banks no longer offer leasing because they lost their @$$e$ on lease deals?
"When talking to car salesmen, they tell me this is much worse than the recession in the late 80's."
I don't know where you live or what the economic climate was back then in your area, but the late 80's were boom times in the industry as a whole. The early 80's were a different story.
"They tell me that new car sales have never been this bad. Some of these salesmen are in their 50's and 60's, so I guess it must be pretty bad out there."
Salesmen always say that when customers aren't coming thru the doors. I have dealers telling me that they are having record sales now. Some are slow. Some dealers are very aggressive and successful. Others aren't.
"There are serious deals to be had in the used car market. You can pick up $40,000 cars with relitively low miles for $12,000 - $15,000 around these parts, all were leased, many with maintenance records."
I trust you mean that these cars were $40,000 when new. If these cars are being offered for those prices at one lot, but for a lot higher prices at most or all other lots, all I can say is "Buyer Beware". The reason for the low price may not be the tough economic times.
Volvo BUMP!
My wife & I bought a 2001 Volvo V40 someone had leased for only one year.
The car was immaculate and had around 15K on the odometer.
We got an excellent - I mean phenomenal - deal on it and have put 24000 miles on it since Sept. 2001 with no problems to speak of.
I always sneered at Volvos as liberal yuppie cars before, but this car has sold me.
Yes but it usually involves incororation not just a slef employed type business. And, even then it is more for vehicles you use to bring in money (Such as delivery vehicles and service vehicles)
????? Zackly the opposite here. We have two '94 Camrys - my wife's is the 4-cyl, mine is the V6. The two cars together have 275,000 miles on them collectively, and the trannies are still crisp and tight. If I blindfolded you and took you for a ride in the V6 (without your knowing what kind of car you were in) you'd swear it was a turbo.
My big thing these days is the 2001 Damon 35' Motorhome. Great for traveling with the dogs, hangin' out at the beach, and having your house with you wherever you go (and avoiding the airport security fiasco). That one made economic sense to finance. But we buy our cars with cash, used, never look back.
Michael
A car to drive to and from your 9-5 job, when you are working in a cubicle, is just a means of transportation. However, if you look in the parking lot of a any large office building you will see very expensive cars for middle income wage slaves. Dumb, unless your job or livelyhood depends on your car looking new and expensive it is just a huge waste of cash.
Debt on a rental property may seem good (and may actually work out okay), but there is a risk involved if the property doesn't rent, and you can't make the mortgage payments, which can be catastrophic. I couldn't agree more about expensive cars and wage slaves though.
Back in the days when I did a lot of work on-site, I bought a 1986 Lincoln Town Car (this was in '92) for $4000 cash. This car generated tax deductions for mileage ALONE of over $14,000 during the time I had it. In '96, I sold it for $2000 cash. That car was actually a money-MAKER. And it had 230,000 miles on it when I sold it.
NEVER lease a car.
Michael
The other factor is those warranties. I got a small car, upgraded it with extras, and have a 100,000 miles engine warranty, 60,000 miles for everything else but the tires. Also, there is a toll free number for free service if the car breaks down. It was only $3,000 more than a 2-year old car with 40,000 miles and next to no warranty would have cost.
Chrysler has developed a bad habit of increasing engine power without strengthening the transmission. Many times a high-torque engine is mated to a transmission designed for far less, and the thing will just burn out no matter what you do.
Change transmission fluid often, and when you have it changed, make sure the mechanic removes the fluid from the torque converter as well as the transmission, otherwise you're just mixing new fluid half-and-half with worn-out, burned fluid. That is a recipe for an expensive and gooey mess inside your transmission.
Cash Flow is King Baby!
When I was 24 I bought my first rental property. It was a run down house which needed a new floor (completely fell in in the kitchen) and all new interior walls. I paid 8500 for it, 3 bedrooms, one bath, and utility room, and living room. After putting about 5k in remodling in it I rented it out for 250 a month. When I was first buying the property Mrs. Dawgg's mom wanted to know why I would want such a place?
Last year I sold the property (on Land contract) for 22,000 dollars after renting it for 16 years. She told me now she understood! She is looking for her first property now because banks don't pay her any interest any more.
Note: all the debt is kept on the 2nd mortgage so I can deduct it.
If a vehicle is used for business purposes, it can be 'written off' regardless of whether it is paid in cash, a loan, or leased. You need not be incorporated.
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