|
|
|
|
|
|
BMW Garage | BMW Meets | Register | Today's Posts | Search |
|
BMW 3-Series (E90 E92) Forum
>
Good time to buy with talks of recession?
|
|
01-18-2008, 02:16 PM | #1 |
Private First Class
7
Rep 132
Posts |
Good time to buy with talks of recession?
I wonder how bad the car market is being affected with all this talk of consumers not spending... and wonder if it would be a good time to look into trading up! What are your thoughts?
__________________
07 E90 328xi 6MT Sparkling Graphite/Sport/Xenon/KW V3/Blacklines
|
01-18-2008, 02:19 PM | #2 |
Moderator
617
Rep 10,855
Posts |
Spend! Spend! Spend! Let the irrational exuberance flow.
__________________
My recent ED photos: http://f80.bimmerpost.com/forums/sho....php?t=1026808
my not-so-recent ED: http://www.e90post.com/forums/showthread.php?t=31829 Please join BMWCCA http://bmwcca.org/index.php?pageid=c...&ref_by=300279 |
Appreciate
0
|
01-18-2008, 02:23 PM | #3 |
Private First Class
7
Rep 132
Posts |
pSHH!! I'm military, and we are in America! Cutting back military is not an option..... so my job is safe!
__________________
07 E90 328xi 6MT Sparkling Graphite/Sport/Xenon/KW V3/Blacklines
|
Appreciate
0
|
01-18-2008, 02:32 PM | #4 |
Major General
414
Rep 6,968
Posts |
Only way to get out of a recession is spend your way out of it ;-)
BMW's sale was up 7% as of Nov last year so I am not sure how much premium brand may suffer or has it even kicked in yet. |
Appreciate
0
|
01-18-2008, 02:45 PM | #6 | |
Private First Class
7
Rep 132
Posts |
Quote:
Bring on my 600 dollar check! If spending is what they want I'm willing to oblige.
__________________
07 E90 328xi 6MT Sparkling Graphite/Sport/Xenon/KW V3/Blacklines
|
|
Appreciate
0
|
01-18-2008, 02:49 PM | #7 |
Lieutenant General
1705
Rep 14,829
Posts |
I dunno, I cashed in two mutual funds to put the downpay on the 335. Back then the lessees were saying how dumb it is to put money down on a "depreciating" asset, they invest the cash flow they free up by leasing. When I see my mutual funds are worth less than they were 15 mos. ago, I personally feel like I made the right move. But if I had to cash in two mutual funds today to make the downpay on an '08, I wouldn't. That would be like buying high and selling low. So when people spend less during a recession, I can't see why others would go the opposite way and spend more. It's like everyone else is building a bomb shelter, but the OP turns up the surround sound and lives in his bubble of Blue Ray and HD.
McCain just said something so dumb I was quite surprised. Lowering the corp. income tax was dumb, but saying they should write-off an asset in one year, that was stupid. He obviously slept through finance at the Naval Academy...reminds me of Seinfeld and Kramer... Kramer : Jerry all these big companies they write off everything Jerry : You don't even know what a write off is . Kramer : Do you ? Jerry : No . I don't . |
Appreciate
0
|
01-18-2008, 02:50 PM | #8 | |
Chief Executive
300
Rep 2,886
Posts
Drives: 2008 335xi 6spd Coupe
Join Date: Dec 2007
Location: Boston
|
Quote:
The real question is how will the recession affect your personal finances and measures such as, medium term income risk, credit, ancillary costs (insurance, gas, parking, mods etc), monthly free cash, etc. |
|
Appreciate
0
|
01-18-2008, 03:08 PM | #9 |
Private First Class
7
Rep 132
Posts |
I'm not an economics major, but I would think our weakened economy would have a direct impact on the required margins of BMW dealerships. With unemployment rising, people's retirement funds taking big hits, and foreclosures at an all time high... I find it hard to believe that their sales level remain what it was a year ago.
__________________
07 E90 328xi 6MT Sparkling Graphite/Sport/Xenon/KW V3/Blacklines
|
Appreciate
0
|
01-18-2008, 04:05 PM | #10 |
Colonel
66
Rep 2,765
Posts |
there is no recession... and there wont be... okay peoples. ill win the biggest lotto ever and give it all to help our economy... sike! id save it all in a box under my bed to help us out! hahahaha
|
Appreciate
0
|
01-19-2008, 07:34 AM | #13 |
Lieutenant General
1705
Rep 14,829
Posts |
Last time I checked, there wasn't any lottery where the payout was in the trillions. You're better off winning the lotto, keeping the money for yourself. Just make sure they pay you in Euros or Chinese money. If not, you'll lose even more because rates are going down on weak currency.
|
Appreciate
0
|
01-19-2008, 08:03 AM | #14 | |
Colonel
335
Rep 2,385
Posts |
Quote:
But it definitely won't get to the point were people can't afford to eat. I think a lot of the luxury/leisure industry will taking the biggest hit. Restaurants, fast food, Car dealers, Gyms like Bally's or Gold's, Malls, Travel destinations, etc. Eventually Americans will have to cut back on things and those items will be the first to go. The people, which there will be a lot of them, that don't cut back will be the ones in their own "great depression". Personally I love it. Cash is rolling it's way to my business. I'm making a ton off the stupid people who love to spend but can't pay for their mortgage. That's right foreclosure service is where it's at and where it will be for a decade +. The govt. can't stop this giant shit ball no matter what they do, it has way too much momentum and way too many dumb asses helping it along.
__________________
retired 06 E90 325i New: 09 VW Platinum Grey Jetta Sportwagen 2.0T SEL w/DSG, panoramic sunroof and Ipod adapter |
|
Appreciate
0
|
01-19-2008, 08:16 AM | #15 | |
Colonel
335
Rep 2,385
Posts |
Quote:
If you leased, hell fuckin no, unless you enjoy throwing money away. If that's the case I'm sure many members wouldn't mind PMing you their mailing address to throw money away to us as well. No dealer will give you a deal where you won't owe thousands to get out of the loan or roll thousands onto the next car. In the end it's never a pretty picture. If you financed, put the car up for sale and see what happens. Maybe even see what the dealer will offer, prolly no where near what a private sale will but if you don't want to go through that hassle then this is your only option. Either way you still may lose a few $k cuz in the end cuz you rarely ever get what the car is actually worth.
__________________
retired 06 E90 325i New: 09 VW Platinum Grey Jetta Sportwagen 2.0T SEL w/DSG, panoramic sunroof and Ipod adapter |
|
Appreciate
0
|
01-19-2008, 10:05 AM | #16 |
slave to the dark side
30
Rep 173
Posts |
darkcloud has a good point that you should explore what you can sell your car for today - versus next year or the year after when it has more wear and tear. That might help you decide if it is better to trade up now or later.
Look at your financial situation tho - how safe is your job/income (regardless of how the bigger economy is doing) and where you realistically expect to be financially a few years from now. just don't deceive yourself and buy now on tomorrow's promises. As far as getting a deal, I don't see luxury car dealers crying for customers anytime soon. Certainly gas prices are getting ugly, but thanks to loose credit, it hasn't made much of a dent in the hordes of late-model big-assed SUVs wallowing around. |
Appreciate
0
|
01-19-2008, 10:25 AM | #17 |
台妹爱我
14
Rep 323
Posts |
Currently its a bad time to get a car. The weakening of dollars makes it tough for European Car Companies to make good profit once converted back to Euros.
My brother inlaw went to the dealership to Check lease prices on a few models. It was insanely high. The market is Bearish right now. SHORT EVERYTHING ! Words from Rutgers Finance Major
__________________
台 客
2003 BMW 330i SOLD 2008 BMW 335i SOLD 2012 Mitsubishi Evolution X Current 2013 BMWX1 xDrive28i Current |
Appreciate
0
|
01-20-2008, 10:09 AM | #18 | |
Lieutenant General
1705
Rep 14,829
Posts |
Quote:
But, as BMW, since most of your American buyers lease anyway, one way to look as if you're keeping prices down is to do just that, and stick it to those who lease, which is what, like 75% these days? Let them live in their bubble of investing the cash flow savings. Pretty soon, we truly wont have anything but debt. Warren Buffet shorted US dollars about 5 years ago, how much more upside is there? It's amazing how quick many are to just say what is already obvious, but they cannot come up with anything that will build let alone sustain wealth. |
|
Appreciate
0
|
01-20-2008, 10:58 PM | #19 |
Lieutenant
23
Rep 502
Posts |
|
Appreciate
0
|
01-21-2008, 08:40 PM | #20 |
Major
10
Rep 1,035
Posts |
Hello, pot? Hi, it's the kettle. Guess what? You're black!
__________________
May 3, '07European Delivery, Redelivered on 6/11/07 - Monaco Blue/Beige, Steptronic, ZPP, ZCW, PDC, iDrive/Navi with RTTI, Logic 7, Xenons, HD Radio
|
Appreciate
0
|
01-21-2008, 09:34 PM | #21 |
Private
2
Rep 79
Posts |
Isn't the Money factor links directly to Interest rate?
By the end of last year, MF for E92 lease was 0.00175. The MF is 0.00245 currently, Jan 2008. This change simply jack up the monthly lease payment easily. I know that coz I just checked with a dealer for the payment of the same car my buddy got 3 months ago. |
Appreciate
0
|
01-21-2008, 09:37 PM | #22 | |
Lieutenant General
1705
Rep 14,829
Posts |
Quote:
|
|
Appreciate
0
|
Bookmarks |
|
|