Rantingjay

[Russ&Caro 1,549]

Just now, SAT said:

And just how do you know that it wasn't an F-250 truck huh?...

Is there such a thing? The F-150 is like the official New Mexico state pickup truck. You seem them everywhere. People here wouldn't give you the time of the day in your Benz.

[SAT 9,609]

 

The debate is over. We destroy fat boy. 

The fat boy of North Korea. Not my wife's cousin fat boy. 

And, speaking of fat boy. Remember he married that ABC chick? And got a green card? Well, that marriage ain't working....

[NikLR 13,227]

You have to have some bad credit to be paying $1200 a month for an f150.  Even our jeep was only $550!  

[SAT 9,609]

Just now, Russ&Caro said:

Is there such a thing? The F-150 is like the official New Mexico state pickup truck. You seem them everywhere. People here wouldn't give you the time of the day in your Benz.

 

1- yeah man, they go up to like F-750s...you'd be the king of red necks if you got one a those...how can you live in AZ and not know that...

 

2- yeah dude, I'm a city guy in the northeast man. Now if I lived elsewhere, I'd have a Ford. I do have a Yukon on stand by here. I wasn't crazy about the Benzs anyway. Went back to Japanese cars. 

[N-o-l-a 7,167]

8 minutes ago, Russ&Caro said:

A tricked out F-150 truck with mediocre credit rating is how I believe he ended up with $1,200. He tried driving Uber for a time but it couldn't even pay for the gasoline he was using.

 

Yeah, I feel you on the American dating outside the USA. My explanation is that I'm a lifelong experience junkie. I'll try anything once. I'd had a series of relationships with American women but nothing caught on. So I met Caro online and figured what the heck. I'm 18 yrs older so I'm always ready for that one day when she might get tired of my schtick and walk out. One day at a time is so cliche and yet there's probably no truer cliche in the world.

 

The price of pick up trucks is crazy.  We have an older Silverado, the work truck edition (so no remote locks or fancy interiors).   At the time it was cheaper than my Subaru.  I think they might have gone up in price, though.

 

It is the now that is important anyway.  I apparently like the same old with some variations, I went from one Scandinavian to another, same exact age and all.

[SAT 9,609]

2 minutes ago, NikLR said:

You have to have some bad credit to be paying $1200 a month for an f150.  Even our jeep was only $550!  

With no money down on a 50k car on good credit, the payment is on or about 1200

[NikLR 13,227]

2 minutes ago, SAT said:

With no money down on a 50k car on good credit, the payment is on or about 1200

Which is why you don't buy brand new 50k vehicles. 

[SAT 9,609]

Yeah you lease them

 

[SAT 9,609]

I forgot it was the tree lighting tonight at rock center...and I was invited to the rink, which is right in front of the tree...

[Ontarkie 14,218]

Leasing in the US must be different then in Canada. In Canada you're nuts to lease, so much can go wrong and then you pay more then the car is worth trading it back. 

[NikLR 13,227]

Dear husband, if you truly cannot figure out why i think you should stay up because im cooking you food for tomorrow then you have more issues than thought.  Dunno if its an upbringing thing or what. 

[SAT 9,609]

Yeah leasing in Canada is very different. 

You have to look at it from the business model. 

 

1- Most car manufacturers here have their own financial company, such as Toyota Motor credit, Honda financial services, GMAC, etc...

The reason is, they make money from the "front end" of the car. We'll use Toyota as an example. They make 3000 per 10000 on the sticker. So if they sold you a car for 30K, they made 9000 dollars. The dealer made about 500-1500. That's the front end. 

 

2- the back end. You have great credit (a prime borrower), Toyota Motor credit  finances you for 2% interest over 60 months. That interest rate is calculated monthly. You borrowed 20K. TMC made another 5-600 on you+ bank fee (a scam, usually waived for prime borrowers). These interest and fees are known as the back end. So having a financial base, these manufacturers made money on you once again, vs handing this back end profit to a bank. 

 

3-Most expensive brand cars are leased. And about half of intermediate brands are leased. When you lease a car, your paying for the portion of the car that you're going to use for the next few years. You're also only paying for a portion of the sales tax. Let's talk about a 3 year term. An Toyota is still worth a lot after 3 years of use with low mileage (ergo the mileage limit on a lease) so let's say that 30K car, you didn't buy it. You leased it. It's still worth 20K after 3 years, this is known as the residual value. So now you're paying the first 10K plus interest (this is known as the "capitalized cost"). Which is low, because higher end leases require high end credit. (Don't forget, they're giving you a 30K car in a signature). So these lessees are prime borrowers. When you lease a car, this car is "sold" to the leasing company (like TMC), and then "leased" to you. So the car is sold (often for tissue cost, which is the dealer invoice), the front end money is made by the manufacturer, the back end money is made by the leasing company, which is, most times, the same company. 

 

4- The return. When you're done with the car, you return it, they slap a sticker on it "certified pre-owned". THIS is where the most money is made! The car's residual value is 20k, they have it in the new car dealer's used car lot for 24,999, it's got 20k miles, it looks new, it's very nice. Some stiff, with mediocre credit buys it for 23k, thinking he got a bargain, pays 9-20% interest.  Again, to TMC! That's when they make 5-10k on a used car. 

 

This business model was basically a brilliant development over the past 3 decades, because the car manufacturers are under tremendous pressure to push the cars off the assembly line, and off the showroom floor. They call it a "floor plan". If they didn't do things this way, the industry would be stagnant. 

 

This btw, is the short version of the business model. 

 

Edited November 30, 2017 by SAT

[SAT 9,609]

12 minutes ago, NikLR said:

Dear husband, if you truly cannot figure out why i think you should stay up because im cooking you food for tomorrow then you have more issues than thought.  Dunno if its an upbringing thing or what. 

Cook me something, I'd stay up

 

[cdneh 3,112]

The MIL returned this morning from her Thanksgiving trip to VA, clutching in her hot little hand a glossy brochure from her new retirement village, already paid for. Less than half a mile from her charming daughter.

We have a real estate agent turning up here at the house tomorrow at 08:00, and she will be gone by the end of January.

 

 

[SAT 9,609]

 

 

Sorry, part 5- The summary. 

 

So, in the end. You paid 10k plus a little interest to use a nice new car. 

Some other dude behind you paid 23k plus a lotta interest for the car. 

Toyota sold a 30k car for 33k plus thousands in interests and fees. 

Win!