Car Dealer Lots Are Flush With Unsold Cars as Sales Are Expected To Drop


#82

Let’s agree that the fed is way more scared of disinflation then inflation


#83

I think you mean deflation.


#84

Deflation and disinflation are almost the same thing disinflation is when you gauge is trending down to which the fed would start getting worried. Outright deflation is when money is worth more tomorrow then it is today.


#85

Back to cars and trucks: did anyone read the WSJ article on high end trucks?


#86

If the fed was worried of deflation, they wouldn’t have raised rates as much as they did. i think they’re making the case that there is “some” inflation, though official readings don’t show any, with the ultimate goal of raising rates enough to have ammunition to lower them in a potential downturn.

but I agree with you, i think the fed should be worried more about deflation right now, especially since food and energy are not moving, and the world is showing signs of slowing a bit, which will lead to further drops in prices.


#87

I remember the days when a truck was a truck, and not a luxury vehicle with a bed.


#88


#89

Aren’t there massive tax breaks for buying trucks over 6,000 pounds?


#90

Yup, much more than vehicles below 6k


#91

Damn it I need my own company so a raptor could be my write off! Pay for a trip around the world in credit card points from filling it up


#92

More than you (probably) want to know…

https://finance.zacks.com/6000pound-vehicle-tax-deduction-3484.html

https://www.section179.org/section_179_vehicle_deductions/


#93

You just accelerate the depreciation instead of spreading it over time. It’s not like it is a bonus.


#94

My father in law recently bought a new ram 1500. He legit needs it since he owns a machine shop. Went in and leased the cheapest 4x4 ram 1500 tradesman quadcab on the lot. We are taking tiny 5 inch non touchscreen with no keyless entry or push button start, cloth interior, no AA/car play etc…

Doing paperwork salesman said they keep a few of these trucks on the lot since people see them online and come in intending to buy them. But almost everyone ends up spending an extra 10k-20k for a truck with leather, the big touch screen, keyless entry and start, plus a bunch of other doodads.

These trucks are a great value if you stick to base models. Final Sale price way under 30k for a giant truck and big engine.


#95

It depends, Maybe my business depreciates most of it in a couple or three years. Then I sell it to myself for the sweetheart deal and let my wife/kid/cousin-Vinney drive it. I repeat this process every cycle.


#96

Since the chance of getting audited is pretty small and a sale is technically excluded from the Section 179 recapture tax, I guess it works out.

Small business runs the country!


#97

AutoNation Announces Restructuring and Cost Savings Plan


#98

#99

People are over-leveraged. I see people all the time leasing expensive cars and declaring bankruptcy 4 weeks later

Image and reality are two different things. You guys should see the revolving debt of some people.


#100

#101

Those who don’t learn from their mistakes are due to repeat them.