Auto industry Impact - due to shut down

[goIftdibrad]

This is all super interesting, and largely counterintuitive to me. It's strange that manufacturers are offering these crazy finance deals, like 0% for 72 with 6 months deferred, but then that there isn't a large amount of cash incentive available if someone has their own financing or is a cash buyer. How does that work on the manufacturers' ends? There has to be a cost to offering those kinds of financing options, why not be willing to pass along that dollar amount to a buyer as a cash incentive?

Auto manufacturers have been banks that just happen to also make and sell cars for a long time now.

[max225]

Apparently the market is bouncing back. So

[goIftdibrad]

Apparently the market is bouncing back. So

the money line is pleased.

Or are we watching inflation in real time?

[ChrisoftheNorth]

Dealers in the Northeast are effectively shut down for now. My General Manager is the only sales employee left in a dealership that sells 150-180 new cars a month and 80-100 used... with 20 salespeople, 4 managers and the GSM. Given the state mandated hoops involved for us to jump through to perform remote sales, it's largely not worth our time or effort until we can reopen as normal. If we do sell a car, it has to be worth our while - tough when the average Toyota carries about a 3-5% margin from MSRP to Invoice. Manufacturer has suspended floorplan financing repayments for now, and is just charging us interest on the mortgage for the building.

As it is, Toyota have effectively pulled all incentives for now. A lease on a standard Camry is $400/mo with $2500 down - the incentives all come from the manufacturer and that's what drives the deals. You're not going to see a dealer go $4k behind invoice on top of whatever the factory throws down because of the floorplan support... it costs us nothing to maintain the inventory for now for at least the next 90 days.

This is all super interesting, and largely counterintuitive to me. It's strange that manufacturers are offering these crazy finance deals, like 0% for 72 with 6 months deferred, but then that there isn't a large amount of cash incentive available if someone has their own financing or is a cash buyer. How does that work on the manufacturers' ends? There has to be a cost to offering those kinds of financing options, why not be willing to pass along that dollar amount to a buyer as a cash incentive?

It depends on the OEM...and even then it depends on region. Some regions respond better to cash off, others low interest rates. Sounds like right now Toyota has decided to stop blowing money on anything and just riding it out, which might be the smart move TBH.

[coogles]

the money line is pleased.

Or are we watching inflation in real time?

You mean in fast forward?

What happens when the economy stops and the government prints money. Gee, this has never before been tried in history. I wonder what might happen?

[Tar]

You mean in fast forward?

What happens when the economy stops and the government prints money. Gee, this has never before been tried in history. I wonder what might happen?

Green shoots!

[goIftdibrad]

You mean in fast forward?

What happens when the economy stops and the government prints money. Gee, this has never before been tried in history. I wonder what might happen?

But it will be different this time

[max225]

How is it possible that we're back to record highs on everything in the stock market that isn't tied into travel/airlines/gas.

[troyguitar]

How is it possible that we're back to record highs on everything in the stock market that isn't tied into travel/airlines/gas.

Because the market is not the economy. It is only a reflection of the status of rich people. Turns out they're still rich.

[Tar]

How is it possible that we're back to record highs on everything in the stock market that isn't tied into travel/airlines/gas.

Is the FED allowed to buy stocks with the bailout money?

[max225]

How is it possible that we're back to record highs on everything in the stock market that isn't tied into travel/airlines/gas.

Is the FED allowed to buy stocks with the bailout money?

The fed is just "buying" Boeing for now, don't think they have bailed out anyone else other than the insanity in the SBA market.

[goIftdibrad]

How is it possible that we're back to record highs on everything in the stock market that isn't tied into travel/airlines/gas.

Is the FED allowed to buy stocks with the bailout money?

just boeing, but they can buy bonds. So every corporation has been buying bonds like cray. shared an article where exxon issued a 2nd 9.5 billion dollar bond.

[dubshow]

What happens when the economy stops and the government prints money. Gee, this has never before been tried in history. I wonder what might happen?

But it will be different this time

[dubshow]

I like how all you people are starting to get it.

bunch of fuckn tinfoilers

[Tar]

I like how all you people are starting to get it.

bunch of fuckn tinfoilers

I tin foiled in 2008, but since have accepted that the markets and monetary transfer is rigged. The power to accept the things I cannot change" is my stance for better or worse.

[dubshow]

I like how all you people are starting to get it.

bunch of fuckn tinfoilers

I tin foiled in 2008, but since have accepted that the markets and money transfer is rigged. The power to accept the things I cannot change" is my stance for better or worse.

I fall into the same category. Optimistic pessimist.

[max225]

What's the "starting to get comment" here?

[Tar]

Is the FED allowed to buy stocks with the bailout money?

just boeing, but they can buy bonds. So every corporation has been buying bonds like cray. shared an article where exxon issued a 2nd 9.5 billion dollar bond.

Are they feeding the big banks who might be buying dips in the stock market?

[max225]

How is "buying" bonds the same as "issuing bonds" holy shit you guys... can you please keep the financial terms straight. They are polar opposites. Issuing bonds is a cheap way to raise capital. I.E a LOAN.

[goIftdibrad]

just boeing, but they can buy bonds. So every corporation has been buying bonds like cray. shared an article where exxon issued a 2nd 9.5 billion dollar bond.

Are they feeding the big banks who might be buying dips in the stock market?

i don't know details, but probably? The fed buying corporate bonds is unprecedented.

[dubshow]

How is "buying" bonds the same as "issuing bonds" holy shit you guys... can you please keep the financial terms straight. They are polar opposites. Issuing bonds is a cheap way to raise capital. I.E a LOAN.

Exxon issued the bonds. The Fed is buying bonds in bulk. Since october. You know this

[dubshow]

Tesla back up 60% over last 7 days.

[max225]

How is "buying" bonds the same as "issuing bonds" holy shit you guys... can you please keep the financial terms straight. They are polar opposites. Issuing bonds is a cheap way to raise capital. I.E a LOAN.

Exxon issued the bonds. The Fed is buying bonds in bulk. Since october. You know this

They are not allowed to have more than 10% of the bonds.

[goIftdibrad]

Exxon issued the bonds. The Fed is buying bonds in bulk. Since october. You know this

They are not allowed to have more than 10% of the bonds.

10% of a shitload is still a shitload

[max225]

A bond has to be paid back... so unless the company fails I don't see an issue.