How much over MSRP are you willing to pay?
3/3/06, 09:17 PM
#41
Legacy TMS Member
<div class='quotetop'>QUOTE(BC_Shelby @ March 3, 2006, 10:30 PM) Quoted post</div><div class='quotemain'>
But all things being equal, no one should ever pay AMV on any car for any reason at any time. It's a fool's errand on a depreciating asset that begins depreciating the MOMENT you drive it off the lot, and calculated on the MSRP, NOT on the MSRP + AMV.
[/b][/quote]
At one time, I thought I heard it was calculated on the invoice price!
Whatever it is based on, AMV is an expression of supply and demand. Until car prices become fixed, AMV will be a reality.
Truly, if one were to do the least foolish thing, from a purely financial point of view, a used GT500 would save more money.
But all things being equal, no one should ever pay AMV on any car for any reason at any time. It's a fool's errand on a depreciating asset that begins depreciating the MOMENT you drive it off the lot, and calculated on the MSRP, NOT on the MSRP + AMV.
[/b][/quote]
At one time, I thought I heard it was calculated on the invoice price!
Whatever it is based on, AMV is an expression of supply and demand. Until car prices become fixed, AMV will be a reality.
Truly, if one were to do the least foolish thing, from a purely financial point of view, a used GT500 would save more money.
3/3/06, 10:12 PM
#42
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<div class='quotetop'>QUOTE(Tony Alonso @ March 3, 2006, 8:20 PM) Quoted post</div><div class='quotemain'>
At one time, I thought I heard it was calculated on the invoice price!
Whatever it is based on, AMV is an expression of supply and demand. Until car prices become fixed, AMV will be a reality.
Truly, if one were to do the least foolish thing, from a purely financial point of view, a used GT500 would save more money.
[/b][/quote]
Car prices ARE fixed to MSRP in my neck of the woods. So no AMV nonsense here, thank god. [img]style_emoticons/<#EMO_DIR#>/icon_mrgreen.gif[/img]
And yeah, a used GT500 would be the smart choice financially. Thing is, with a car like this, I don't want to take a chance on a used model that someone has driven the bag off of. It might look all shiny and nice on the outside, but it could end up being thrashed mechanically.
At one time, I thought I heard it was calculated on the invoice price!
Whatever it is based on, AMV is an expression of supply and demand. Until car prices become fixed, AMV will be a reality.
Truly, if one were to do the least foolish thing, from a purely financial point of view, a used GT500 would save more money.
[/b][/quote]
Car prices ARE fixed to MSRP in my neck of the woods. So no AMV nonsense here, thank god. [img]style_emoticons/<#EMO_DIR#>/icon_mrgreen.gif[/img]
And yeah, a used GT500 would be the smart choice financially. Thing is, with a car like this, I don't want to take a chance on a used model that someone has driven the bag off of. It might look all shiny and nice on the outside, but it could end up being thrashed mechanically.
3/4/06, 01:12 PM
#43
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Food for thought.
From past experience we know this car will sell for over MSR so this is going to weed out buyers that depend on financing. What bank would be willing to go above the loan value of the car? Not the ones in my area. My credit score is in the upper 10% and I don't think my bank would do it using only the car for collateral. If one pays the market adjustment out of pocket then finances the balance at 6% for 60 mo. that is a hit for sure. Another hit is paying sales tax on the market adjustment. If the car were to be totaled out in a collision the down payment, trade in and market adjustment would be lost as the insurance would pay the lien holder. My 2 cents
From past experience we know this car will sell for over MSR so this is going to weed out buyers that depend on financing. What bank would be willing to go above the loan value of the car? Not the ones in my area. My credit score is in the upper 10% and I don't think my bank would do it using only the car for collateral. If one pays the market adjustment out of pocket then finances the balance at 6% for 60 mo. that is a hit for sure. Another hit is paying sales tax on the market adjustment. If the car were to be totaled out in a collision the down payment, trade in and market adjustment would be lost as the insurance would pay the lien holder. My 2 cents
3/4/06, 01:24 PM
#44
Team Mustang Source
<div class='quotetop'>QUOTE(Mongoose @ March 4, 2006, 3:15 PM) Quoted post</div><div class='quotemain'>
Food for thought.
From past experience we know this car will sell for over MSR so this is going to weed out buyers that depend on financing. What bank would be willing to go above the loan value of the car? Not the ones in my area. My credit score is in the upper 10% and I don't think my bank would do it using only the car for collateral. If one pays the market adjustment out of pocket then finances the balance at 6% for 60 mo. that is a hit for sure. Another hit is paying sales tax on the market adjustment. If the car were to be totaled out in a collision the down payment, trade in and market adjustment would be lost as the insurance would pay the lien holder. My 2 cents
[/b][/quote]
Good point. I had forgotten about tax on AMV. To me that just makes it that much more rediculous.
Food for thought.
From past experience we know this car will sell for over MSR so this is going to weed out buyers that depend on financing. What bank would be willing to go above the loan value of the car? Not the ones in my area. My credit score is in the upper 10% and I don't think my bank would do it using only the car for collateral. If one pays the market adjustment out of pocket then finances the balance at 6% for 60 mo. that is a hit for sure. Another hit is paying sales tax on the market adjustment. If the car were to be totaled out in a collision the down payment, trade in and market adjustment would be lost as the insurance would pay the lien holder. My 2 cents
[/b][/quote]
Good point. I had forgotten about tax on AMV. To me that just makes it that much more rediculous.
3/4/06, 01:45 PM
#46
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<div class='quotetop'>QUOTE(Mongoose @ March 4, 2006, 2:15 PM) Quoted post</div><div class='quotemain'>
Food for thought.
From past experience we know this car will sell for over MSR so this is going to weed out buyers that depend on financing. What bank would be willing to go above the loan value of the car? Not the ones in my area. My credit score is in the upper 10% and I don't think my bank would do it using only the car for collateral. If one pays the market adjustment out of pocket then finances the balance at 6% for 60 mo. that is a hit for sure. Another hit is paying sales tax on the market adjustment. If the car were to be totaled out in a collision the down payment, trade in and market adjustment would be lost as the insurance would pay the lien holder. My 2 cents
[/b][/quote]
I've said all along that those paying over MSRP are not worried about the financial impact of the purchase....either buying or selling it at a later date (everything above MSRP is a sunk cost..lost forever!), but I never thought of it the way you put it. You make a very good point.
Food for thought.
From past experience we know this car will sell for over MSR so this is going to weed out buyers that depend on financing. What bank would be willing to go above the loan value of the car? Not the ones in my area. My credit score is in the upper 10% and I don't think my bank would do it using only the car for collateral. If one pays the market adjustment out of pocket then finances the balance at 6% for 60 mo. that is a hit for sure. Another hit is paying sales tax on the market adjustment. If the car were to be totaled out in a collision the down payment, trade in and market adjustment would be lost as the insurance would pay the lien holder. My 2 cents
[/b][/quote]
I've said all along that those paying over MSRP are not worried about the financial impact of the purchase....either buying or selling it at a later date (everything above MSRP is a sunk cost..lost forever!), but I never thought of it the way you put it. You make a very good point.
3/4/06, 01:56 PM
#47
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<div class='quotetop'>QUOTE(Mongoose @ March 4, 2006, 4:15 PM) Quoted post</div><div class='quotemain'>
Food for thought.
From past experience we know this car will sell for over MSR so this is going to weed out buyers that depend on financing. What bank would be willing to go above the loan value of the car? Not the ones in my area. My credit score is in the upper 10% and I don't think my bank would do it using only the car for collateral. If one pays the market adjustment out of pocket then finances the balance at 6% for 60 mo. that is a hit for sure. Another hit is paying sales tax on the market adjustment. If the car were to be totaled out in a collision the down payment, trade in and market adjustment would be lost as the insurance would pay the lien holder. My 2 cents
[/b][/quote]
Excellent points ,I couldn't agree more.Those"Dealers" [img]style_emoticons/<#EMO_DIR#>/nonono.gif[/img] [img]style_emoticons/<#EMO_DIR#>/nonono.gif[/img] [img]style_emoticons/<#EMO_DIR#>/nonono.gif[/img]
Food for thought.
From past experience we know this car will sell for over MSR so this is going to weed out buyers that depend on financing. What bank would be willing to go above the loan value of the car? Not the ones in my area. My credit score is in the upper 10% and I don't think my bank would do it using only the car for collateral. If one pays the market adjustment out of pocket then finances the balance at 6% for 60 mo. that is a hit for sure. Another hit is paying sales tax on the market adjustment. If the car were to be totaled out in a collision the down payment, trade in and market adjustment would be lost as the insurance would pay the lien holder. My 2 cents
[/b][/quote]
Excellent points ,I couldn't agree more.Those"Dealers" [img]style_emoticons/<#EMO_DIR#>/nonono.gif[/img] [img]style_emoticons/<#EMO_DIR#>/nonono.gif[/img] [img]style_emoticons/<#EMO_DIR#>/nonono.gif[/img]
3/5/06, 03:10 AM
#48
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Those ARE excellent points. Certainly, only the richest "gotta have it now" crowd will be walking in and buying the car for cash on the barrel head...no matter what they're told they have to pay.
The vast majority of buyers, however - who must finance this vehicle - will not be able to afford an AMV on the car, thus reducing the chances that dealers will be able to successfully employ this tactic.
I still maintain that once the initial frenzy is over, anyone who wants one of these cars - and can afford it - will be able to get one, given a little patience.
The vast majority of buyers, however - who must finance this vehicle - will not be able to afford an AMV on the car, thus reducing the chances that dealers will be able to successfully employ this tactic.
I still maintain that once the initial frenzy is over, anyone who wants one of these cars - and can afford it - will be able to get one, given a little patience.
3/5/06, 06:03 AM
#49
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<div class='quotetop'>QUOTE(BC_Shelby @ March 5, 2006, 6:13 AM) Quoted post</div><div class='quotemain'>
Those ARE excellent points. Certainly, only the richest "gotta have it now" crowd will be walking in and buying the car for cash on the barrel head...no matter what they're told they have to pay.
The vast majority of buyers, however - who must finance this vehicle - will not be able to afford an AMV on the car, thus reducing the chances that dealers will be able to successfully employ this tactic.
I still maintain that once the initial frenzy is over, anyone who wants one of these cars - and can afford it - will be able to get one, given a little patience.
[/b][/quote]
I agree with you except for the part of "a little patience" it will take "A LOT OF PATIENCE" [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img] [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img]
Those ARE excellent points. Certainly, only the richest "gotta have it now" crowd will be walking in and buying the car for cash on the barrel head...no matter what they're told they have to pay.
The vast majority of buyers, however - who must finance this vehicle - will not be able to afford an AMV on the car, thus reducing the chances that dealers will be able to successfully employ this tactic.
I still maintain that once the initial frenzy is over, anyone who wants one of these cars - and can afford it - will be able to get one, given a little patience.
[/b][/quote]
I agree with you except for the part of "a little patience" it will take "A LOT OF PATIENCE" [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img] [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img]
3/5/06, 08:15 AM
#50
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<div class='quotetop'>QUOTE(svtbird91 @ March 5, 2006, 7:06 AM) Quoted post</div><div class='quotemain'>
I agree with you except for the part of "a little patience" it will take "A LOT OF PATIENCE" [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img] [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img]
[/b][/quote]
You got that right!!
I agree with you except for the part of "a little patience" it will take "A LOT OF PATIENCE" [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img] [img]style_emoticons/<#EMO_DIR#>/banghead.gif[/img]
[/b][/quote]
You got that right!!
3/5/06, 06:54 PM
#51
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Nothing official here just something intresting. I was talking with a buddy doing a project for a Masters class on the supply and demand for the GT500 Mustang. A bunch of us are car buffs and we were chatting about pricing and what one might pay. Although no official pricing has been layed out, and in reality all we have at dealerships are waiting list of potentially possible buyers. Who knows maybe a bunch of them will opt out for financial problems. But check this out for final results. The average dealer has a waiting list of 13. I know this is odd, but depending on where you live some dealerships have like 5 people and others have 25 or more. Each dealership is expected to be allocated 1 to 4 vehicles per year for a 2 year run depending on various criteria. According to this poll we would expect almost everyone to buy at MSRP, and 1 out of 10 to pay up to 5 over. Lets say I am the dealer, and my allocations are realeased to place orders, how do I determine who gets my car if I have a waiting list at 13? I have a feeling we are going to start seeing alot of dealerships start doing an ebay offer and pull it just prior to ensure they get the most bang for the buck out of the waiting list. I think it would be quite a shocker to go the dealer and have him tell you he has an ebay offer for say 8 over MSRP, but since your on my waiting list in the local area I will give it to you right now for 7 over. I know this sounds dirty here, but I am thinking alot of people may run into this experience. ITS ALL UNOFFICIAL, its just speculation so don't go postal if you start seeing ebay Gt500s up for sale.
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