Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (23997)	12/6/2001 10:47:35 AM
From: yard_man	Respond to of 209892

May I suggest some shopping tips -- wait until the second week in Jan -- then go shopping for puts on the likes of KSS, TJX, HD, LOW ... the idea that the discounters will beat the cr^p out of the specialty shops and not be hurt is insane. Ford sold a lot of cars with 0% interest -- it's fantastic for profits and future demand. It's hard to think about what things looked like 2 years ago, but I can tell you this - I know I saw a lot more "junkers" on the road as a %-age two years ago -- just about anybody who can get credit has a new vehicle in my neck of the woods. Many folks don't know how large a part of the economy autos is -- but I've heard something like 1/6 or 1/7 ...

To: orkrious who wrote (23997)	12/6/2001 11:21:46 AM
From: bcrafty	Read Replies (1) \| Respond to of 209892

okorious, you're right about mixing sales and profits Those zero percent financing deals have got to be hurting the carmakers' bottom lines down the road. And consider this, many people who are buying on that low interest rate are people who would have bought anyway but bought now instead of a few months later. This may portend a gloomy early 2002 for carmakers when the zero percent financing ends and they thus have a corresponding larger drop in sales. Do you personally know many people who bought cars under the current incentives? I don't, but anecdotally I've heard that (1) people are being lowballed on their trade ins even more than normal because of a glut in the used car market (2) car dealers were coming down less off the sticker price than before the financing (3) people who took the zero percent could not additionally get the factory rebates offered. All this might indicate that many consumers may have not gotten the good deal that they thought they did, if they didn't do their math beforehand.