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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: excardog who wrote (5364)	1/17/2004 3:33:49 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Borrow 15k for example and repay 14.5k or some such nonsense. Say -2% apr auto loans. Call me crazy but I think it could happen in order to keep the machine in motion. My opinion Makes sense to me. Seriously. Anything to get customers to keep buying junks that they do not need at prices they really can not afford given the job and debt situation being what it is. Mish

To: excardog who wrote (5364)	1/17/2004 3:41:41 PM
From: ThirdEye	Respond to of 110194

That would be an intersting spin on the current rebates. (And maybe you could even view the rebate teaser as an existing negative apr). Sell a car without the rebate and spin it back over time with a -apr. Hmmm. You should be in marketing!

To: excardog who wrote (5364)	1/18/2004 11:54:42 AM
From: Ramsey Su	Respond to of 110194

excardog, I don't think negative interest rate would work. During my recent visit with my car friend, he was explaining rebates to me. It all has to do with how to make it feasible for someone to get into a car. In the past, he said rebates are mainly for the purpose of tax and license. That makes it feasible for an otherwise cash strapped buyer into a car. Now a new problem comes along. 2, 3 or even 4 years later, the car is still not paid in full. Furthermore, they have negative value. So you need to offer yet another rebate just to, as he calls it, "unbury" the trade in. Logically, I think we are going to see larger rebates than interest rate games.